Worldline - Registration Document 2016

Business Industry andmarket overview

of new players and the development of innovative mobile and internet payments for both existing and new payment service providers in Europe. Regulatory changes are expected to promote the emergence The regulations applicable to payment services are constantly changing. The revised Payment Services Directive (PSD2) entered into force on January 13, 2016 followed by a transposition period of 2 years, as described in Section 6.9. For implementation, the European Banking Association EBA is mandated to develop 6 Regulatory Technical Standards (RTS) and 5 sets of Guidelines (GL) within defined deadlines ranging from 12 to 24 months after the date of entry into force. The directive enlarges the scope of the existing PSD regulation by limiting the exemptions provided for in the PSD and extending its applicability to “third-party payment service providers” who provide remote access to payment account services or payment initiation services through online platforms, in relation to payment accounts held by other payment service providers. PSD2 will result in the creation of new regulations applicable to payment initiation services and services for accessing account payment balances. This proposal could have an impact on certain payment activities carried out by the Group, in particular services related to the iDEAL and MyBank e-payment platforms and Sips card payment platform, and would require a review of the authentication and authorization procedures that would be implemented in the

context of PSD2 in order to adjust the Group’s payment platforms, as necessary, so as to comply with the applicable directive. For a description of these services, see Section 6.5, “The Group’s business” of this Registration Document. Worldline has set up an internal PSD2 transformation program to analyze and mediate the impacts and to contribute actively to the consultation of EBA developing RTS and GL in 2016 and 2017.

6.2.2.5

Newentrants and their impact on the industry business Model also create newopportunities for Payment Services Providers

payment and with plenty of money to invest, the pace of innovation threatens to leave incumbents trailing. Apple Pay, Android Pay, Facebook’s P2P payment service via messenger etc. cannot be ignored. The GAFA (Google, Apple, Facebook and Amazon) have not only changed the way consumers view customer service and shopping, they have now well and truly entered the world of New Fintechs, unencumbered by legacy technologies are also changing the way consumers interact with financial service providers as we see a new wave of digital only banks for example.

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Competitive Landscape Payment Service Providers

6.2.3

Just as the payment ecosystem is complex, so too is the competitive landscape. Historically, payment services market participants have focused on only one or a few components of the extended payment services ecosystem without covering the full chain. The following diagram summarizes the Group’s

both card and non-card payment instruments, Worldline is ideally positioned to exploit the growth of alternative payments. positioning relative to its main competitors in the European payment services processing market. By supporting a range of

Payment Service Processing in Europe

Issuing transaction processing

Services tocardholders andissuers

Acquiring transaction processing

Acceptance POS e-commerce

Services tonewdigital businesses

Credit/Debit transfers

Services tomerchants

Commercial acquiring

CSM 1

Nets

FirstData

WorldPay

Ingenico

Wirecard

GlobalPayments

TSYS

SIA

SixPaymentServices

Core offering

Non-core offering

Source: The Company’s best estimates based on public sources.

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Worldline 2016 Registration Document