Worldline - Registration Document 2016

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Business The Group’s business

6.5.1.1

Commercial Acquiring

cardholders reduce fraudulent transactions. robust fraud prevention services to help merchants and network, the Group supports merchants at every step of their Beyond simply connecting merchants to the payment scheme increase the number of payment transactions generated by relationship with their customers, allowing them to significantly merchant clients cover all aspects of the electronic payment their business. The turn-key solutions that the Group offers to its processing, point-of-sale marketing campaigns, etc.). chain (Commercial Acquiring, payment terminals, payment The Group offers a number of payment-related value-added loyalty services as well as end-to-end solutions for implementing services, such as fraud detection, customer feedback surveys, company-specific gift and loyalty card programs. Building on its strong historical position in Belgium as the expanded (both organically and via several earlier mentioned leading commercial acquirer, Worldline has successfully Netherlands, Luxembourg and Slovakia and during the course acquisitions) its Commercial Acquiring business initially to the of 2016 to Germany and Poland (via the acquisition of The Group’s Commercial Acquiring clients cover all business an international oil and gas company, travel business such as sectors, from large-scale retail distributors, such as Carrefour to restaurants and shops. Hilton and Carlson Wagonlit, as well as small businesses such as leases and maintains payment terminals. payment terminals and hardware security modules; and it sells, The Group’s terminals division offers two main lines of products: Payment Terminals Worldline offers a range of robust, versatile and easy-to-use market. The Group offers merchants terminals to rent or own, payment terminals adapted for different segments of the markets its terminals in the Benelux and Nordics regions, and provides installation and support services. The Group Russia and Spain. Worldline has shipped more than 200,000 Germany, Switzerland, France Czech Republic, Slovakia, Austria, payment terminals in 2016. applications developed for one type of terminal can easily be All Worldline terminals use the same system-on-a-chip. Custom investment. Built around free software, they allow partners and ported to other terminals, maximizing development return on services like promotion in store, survey and advertisement on customers to develop their own applications. Complementary security keys can be securely downloaded when necessary, the screen of the terminals are available. Software updates and minimizing the need for on-site interventions. Paysquare) and Czech Republic (via KB SmartPay). Payment terminals 6.5.1.2

first growth engine, with an organic growth rate expected at Commercial Acquiring and e-payment acceptance, expansion in mid- to high- single digit, thanks to fast volume growth in Eastern Europe following the recent acquisitions of Paysquare fast growing geographical areas such as Germany and Central & proven solutions, such as retailer’s wallet, digital retail and and KB Smartpay, and acceleration of sales of omni-commerce merchant data analytics. The Group expects Merchant Payment Services to remain its Luxembourg, Germany, Czech Republic and Slovakia. The Group conducts Commercial Acquiring activities principally in the following countries: Belgium, the Netherlands, The Group is a licensed payment institution in Belgium where it acquiring transactions in 2016. is the leading commercial acquirer, handled over 1.9 billion schemes such as Visa and MasterCard and local debit card In order to accept payment cards through international card contract with a payment institution (or bank) that is a member schemes such as Bancontact Mister Cash, a merchant must contracting merchants for payment card acceptance. The key of the card scheme network. Acquiring is the business of role of the acquirer is to transfer the funds received during a merchant’s bank account. A commercial acquirer also effectively card transaction from the cardholder’s issuing bank to the services, because the acquirer is required to refund to the underwrites the credit quality and integrity of the merchant the goods to the end customer. To be an acquirer, a company issuing bank the amounts paid if a merchant does not deliver “Regulation” of this Registration Document. must hold a license as a payment institution. See Section 6.9, Acquiring services. The Group manages and ensures the quality, provides merchants with a one-stop-shop for Commercial merchants to focus on their business. In all the mentioned reliability and availability of payment services, allowing contractual relationship that covers all major international countries earlier the Group provides merchants with a while in Belgium, the Belgian national debit card scheme payment schemes (Visa, MasterCard, Diners, UnionPay, JCB), (Bancontact/Mister Cash) is also offered to its merchant base. Through its ability to offer end-to-end solutions, the Group capabilities, both in the front and back office, to deliver cutting Group’s acquiring platform is built around several modules that edge, seamless multi-device payment related services. The order, 3-D secure, recurring payments, unattended, etc.) across manage all types of payments (EMV, contactless, telephone commerce) and from different acceptance solutions. The multiple channels (point of sale, e-Commerce, mobile reporting to merchants and supports a wide range of currencies Group’s solution includes the delivery of consolidated enhanced for card transactions. The Group’s solutions also incorporate The Group has an attractive combination of solutions and

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Worldline 2016 Registration Document