Worldline - 2020 Universal Registration Document

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THE PAYMENT INDUSTRY Key market trends and drivers of change

New digital businesses B.3.3

The third component of the extended payment services ecosystem in which the Worldline Group operates is services for emerging digital businesses with an embedded payment feature ( e-Ticketing for Transport, Trusted Digitization for regulated sectors, Connected Living ). Leveraging the digital revolution to promote new businesses and new business models, these new players are driving new payment transactions and creating new opportunities. The Group brings its payment and regulation expertise to these new markets and focuses on three main categories of new digital businesses: e-Ticketing and Journey management Solutions for ● Transport Authorities, Transport Operators and cities. The transport market is at the verge of a new revolution with Open Payment whichInf oholic forecast to grow to $ 14.19 billion by 2023 with a 19.7% CAGR. By transforming bank cards into tickets, Open Payment is helping transport companies to reduce their cost, create new revenue; Trusted Digitization . It addresses the growing market of ● digital contracts, legal archiving, electronic secured communications, and paperless transactions in general; mostly for large organizations, typically central or local government or former public monopolies; organizations under strict regulations such as Telecom or Utilities. Digital services for governments provide tax collection services as well as secure paperless systems for public services. These systems are optimized through the digitization of processes for citizens, including implementation of national digital identity schemes, the enabling of electronic

payments (taxes, fines, invoices settlement, etc.), and e-healthcare services, as well through a variety of trusted services, including track & trace solutions, e-contracts and electronic invoicing, legal archiving solutions for companies and e-safe services for individuals. MarketsandMarkets forecast Digital Signature Market to grow by 2026 with a 31% CAGR from $ 2.79 billion in 2020, and Digital Identity Solutions Market to grow by 2024 with a 17.3% CAGR from $ 13.73 billion in 2019; e-Consumer & Mobility Services . This market includes ● Connected Living services such as connected home and vehicles, industrial IOT, as well as consumer cloud and cloud contact services. The IOT market will continue to grow steeply, specific analyst predictions relevant for the Group’s IOT focus areas: GSMA quote Machina Research’s forecast which estimate ● that the global market for connected vehicles should reach $ 253 billion until 2025, Statista estimates that the Industrial IoT market will grow ● at a CAGR of 9%, reaching $ 110,6 billion in 2025, Deloitte reports that 90% of OT sector companies have ● reported at least one security compromise to their infrastructure in the previous two years (2018-2019) resulting in the loss of confidential information or disruption to operations, highlighting the need to implement secure remote access in a world where IT and OT are converging.

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;

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Universal Registration Document 2020