Worldline - Registration Document 2016

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Business Industry andmarket overview

e-Commerce andm-Commerce continue to grow The rapid growth in online e-Commerce, where nearly all payments are cashless payments, is expected to be a major driver of continued growth in non-cash payment transactions. According to AT Kearney, globally e-Commerce will continue to grow but the pace of growth will slow.

should drive significant additional transaction growth. But, we are now witnessing a shift from single end-to-end channel engagement to a cross-channel environment where the online and offline, mobile and fixed, are merging to form a seamless omni-channel presence. Mobile commerce has the potential to increase the number of payment transactions worldwide even further. The number of active telephone accounts worldwide far exceeds the number of active credit and debit accounts, and an increasing percentage of the phones sold are smartphones and feature phones. By enabling phones to be used as payment devices, mobile wallets have the potential to significantly increase the number of users worldwide with access to non-cash payment means, which Mobile Payments The value of mobile payment transactions is similarly expected to see strong growth. Forecasts vary depending on the exact scope and definition. Ovum forecast global mobile payments to reach 24 billion in 2019.

GLOBAL E-COMMERCE SALES (IN US DOLLARS BILLION)

1,506.0

1,328.0

1,155.7

994.5

839.8

694.8

23% 21%

18% 16% 15% 13%

2013 2014

2015f

2016f

2017f

2018f

%change

Source : Euromonitor, AT Kearney, Global Retail e-commerce index 2015.

GLOBALGROWTHFORECASTFORMOBILE PAYMENTS - TRANSACTIONS (IN MILLIONS)

30,000

2013 2014 2015 2016 2017 2018 2019

25,000

20,000

15,000

10,000

5,000

0

Remote Payments

Proximity Payments

Total

Source: Ovum Mobile Payments Forecast 2014-2019.

Mobile payments cover both remote use cases (paying on a web shop or merchant mobile app) and proximity use cases (paying in a physical store). Consumers are getting used to and educated about this new possibility. For example, a study from Accenture (2016 North America Consumer Digital Payments Survey) indicates that in 2016, 56% of US citizens were “extremely aware” of the technology. The support of NFC mobile payment by Apple as part of Apple Pay launched in 2014 is a

strong signal for reality of this use case, which has a positive effect on other mobile payment systems. As there are far more proximity than remote transactions overall, and also because there are far more mobile phones in the world than bank deposit accounts (approximately 2.5 billion according to the World Bank), the opportunity for mobile payment is very significant.

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Worldline 2016 Registration Document