Worldline - 2019 Universal Registration Document

THE PAYMENT INDUSTRY Key Market Trends and Drivers of Change

Key Market Trends and Drivers of Change B.4

The trend towards non-cash payment instruments continues both in the retail and wholesale payment sector. As part of this non-cash trend, alternative payment instruments will also increase in significance and might threaten to disintermediate incumbent financial institutions and service providers. This is driven by a complex interaction of many forces including: Consumer expectations and behavior: the way ● consumers live, enabled by certain key technologies, has driven demanding expectations in the way they interact with both financial institutions and merchants; Technology: new technologies have a fundamental role in ● enabling change in the payment environment and the wider consumer engagement environment; Regulation: Financial institutions and payment services ● providers face a range of regulatory changes that have the potential to create new outsourcing opportunities for payment service providers and to drive increased demand

for value added services to create new revenue opportunities; New entrants: New “Fintechs”, mobile operators and ● GAFAs (Google, Apple, Facebook, Amazon etc.) or BATX (Baidu, Alibaba, Tencent and Xiaomi) are now part of the payment ecosystem and threaten to displace the incumbents. As a consequence, non-cash payment transactions have grown significantly in recent years, and this growth is expected to accelerate as electronic transactions continue to displace cash and cheques. According to the World Payments report 2019, globally the number of non-cash transactions is predicted to grow by 14% CAGR 2017-2022. In Europe, even though it is a mature market, growth is still forecast at 8.5% CAGR. Data provided hereafter have been published in 2019 and therefore do not take into account the impact of the COVID-19 pandemic on the economy and on the payment market.

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Universal Registration Document 2019