MasterCard Money Transfer Solutions

1
MasterCard Money Transfer Solutions

• Card Based Solutions to Enable Global Funds
  Transfer

Department Name Presentation Date
2
MasterCard P2P Money Transfer Solutions
Main Menu
P2P What are the Opportunities?and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
3
MasterCard P2P Money Transfer Solutions
Main Menu
P2P What are the Opportunities?and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
4
MasterCard P2P Money Transfer Solutions
Main Menu
P2P What are the Opportunities?and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
5
MasterCard P2P Money Transfer Solutions
Main Menu
P2P What are the Opportunities?and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
6
MasterCard P2P Money Transfer Solutions
Main Menu
P2P What are the Opportunities?and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
7
MasterCard P2P Money Transfer Solutions
Main Menu
P2P What are the Opportunities?and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
8
MasterCard P2P Money Transfer Solutions
Main Menu
P2P What are the Opportunities?and Challenges?
MasterCard Payment Transaction Solutions
MasterCard P2P Prepaid Cards
The MasterCard Family Account
Supporting Bank Business Models
Next Steps
9
MasterCard P2P Money Transfer Solutions
P2P What are the Opportunities?and Challenges?
P2P A Significant Opportunity
Key Corridors and Countries
Who Sends the Funds?
What are the Challenges?
10
P2P What are theOpportunities and Challenges?
P2P A Significant Opportunity
11
Penetrating Cash and Checks

• Until now MasterCard and its members have focused
  on the conversion of consumer payments to
  business and government
• Payments to consumers are virtually untapped

Full Year 2002 MasterCard GDV
Consumer
C2B
C2G
C2C
Credit C2B 873 Billion B2B 73 Billion G2B 5 B
illion Debit C2B 194 Billion
Business
From
B2B
B2G
B2C
Government
G2B
G2G
G2C
Business
Government
Consumer
To
Market Penetration Key
HEAVY
MEDIUM
MEDIUM
LIGHT
MINIMAL
12
Payments to Consumers
Checks and cash still dominate consumer to
consumer payments

• Gifts
• Loans
• Auctions/Flea Markets/Classified
• Household services
• Money transfer

Checks, Cash, and On-Line Payments
Consumer
C2B
C2G

• Employee payments and payroll
• Insurance payments
• Investment payments
• Benefits payments
• Interest and dividends
• Promotions
• Expenses

Business
From
Checks and Direct Deposit
B2B
B2G
Government
G2B
G2G
Business
Government
Checks, Direct Deposit, and EBT Cards

• Tax disbursements
• EBT
• Pensions

To
Consumer
13
C2C Market High Potential, Significant Challenges
C2C Payments are Forecast to Exceed 800 billion
in the U.S. However, There are Challenges For
Traditional Credit Cards
Category 1998 2003

• New Challenges
• Payees usually do not qualify as merchants
• Overcoming the appeal of untraceable funds
• Difficult to identify and acquire participants

• Personal Rent Income (GS) 20.0 25.5
• Housing Purchases (Goods Services) 290.0
  370.0
• Personal Used Car Sales (G S) 38.5
  49.5
• Flea Markets Classified (GS) 14.0
  19.0
• Personal Care Services (GS) 22.7 28.8
• Auction Market (Online Only) (GS)
  1.0 6.5
• Personal Inheritance (Cash equivalent)
  100.0 130.0
• Intl. Money Transfer - from the U.S. (C)
  30.0 40.0
• Domestic Money Transfer- within U.S. (C)
  14.0 23.5
• Allowances (518 yr.) (C) 70.0 75.0
• Personal Gifts (C) 30.0 38.5
• Other (Both) 63.0 80.6
• Total 693.2 B 886.9 B

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Person-to-Person (P2P) Money Transfer is a
Logical First Step
Category 1998 2003

• Characteristics
• Established industry economics
• Audit trail regulation increasing (AML)
• Existing identifiable participant base

Personal Rent Income (GS) 20.0
25.5 Housing Purchases (Goods Services) 290.0
370.0 Personal Used Car Sales (G S)
38.5 49.5 Flea Markets Classified (GS)
14.0 19.0 Personal Care Services (GS)
22.7 28.8 Auction Market (Online Only) (GS)
1.0 6.5 Personal Inheritance
(Cash equivalent) 100.0 130.0 Intl. Money
Transfer - from the U.S. (C) 30.0
40.0 Domestic Money Transfer- within U.S. (C)
14.0 23.5 Allowances (518 yr.) (C)
70.0 75.0 Personal Gifts (C)
30.0 38.5 Other (Both) 63.0
80.6 Total 693.2 B 886.9 B
15
Significant Opportunity

• Total P2P Money Transfer is forecast to reach at
  200 Billion USD Globally by 2003
• Estimated 800 million transactions annually
  between 200 million consumers
• Growing at a compound annual rate of 10
• Both formal channels, (e.g., banks, Western
  Union) and informal channels, (e.g., mail,
  personal courier)

Source Datamonitor and the Inter-American
Development Bank
16
Remittance Growth is Being Driven by Increased
Global Migration
Foreign-Born People as a of Total Population
Foreign-Born Population in the U.S.
Origin of Foreign-BornPopulation in the U.S.
17
Remittances Channelsare Formal or Informal

• Formal
• Western Union
• Money Gram
• Bank Wire

Global Money Transfer
200 Billion USD
Informal 40
Formal 60

• Informal
• Mail Funds (Cash/MO)
• Carry Funds
• Hawallas, Mulas, Aiajeros

• Informal Money Transfer Channels are Under
  Pressure
• Informal flows have declined from 50 in the 90s
  to almost 40 by 2002
• New alternatives
• New AML reporting regulations
• Governments want to gain control

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P2P What are theOpportunities and Challenges?
Key Corridors and Countries
19
10 Key Corridors Projected to Grow at 10
Annually
Top 10 P2P Funds
2000 Volume
2005 Volume
Projected
Transfer Corridors
(Estimated) USD
(Projected) USD
CAGR
U.S. to Mexico
5.0 10.0 B
9.0 19.0 B
10.0
U.S. to Central America
3.5 6.0 B
6.3 10.8 B
10.0
Saudi Arabia to Egypt
3.5 5.0 B
6.3 9.0 B
5.0
Saudi Arabia to India
3.0 4.5 B
5.4 8.1 B
5.0
UAE to India
2.0 3.0 B
3.6 5.4 B
5.0
North America to China
2.0 3.0 B
3.6 5.4 B
10.0
U.S. to Philippines
1.0 2.0 B
1.8 3.6 B
10.0
North America to India
1.0 2.0 B
1.8 3.6 B
10.0
Germany to Turkey
1.0 2.0 B
1.8 3.6 B
12.5
Germany to Italy
1.0 2.0 B
1.8 3.6 B
12.5
Total
23.0 39.5 B
41.4 71.1 B
10.0
Source Datamonitor 2001, World Bank Reports,
Internal Calculations
20
Focus on a Few Key Countries Can Achieve Scale
Quickly
6 Key Countries Account For Approximately 35 of
Total Opportunity
outbound

• United States 30 B
• India 13 B
• Philippines 10 B
• China 9 B
• Mexico 9 B
• UK 5 B

United States While the U.S. is the largest
outbound sender of funds, the intra-U.S. business
is also significant
inbound
inbound
inbound
United Kingdom The UK does not rank as a top
corridor, however, the total outbound and inbound
remittance volume makes it one of the most
attractive
inbound
inbound
21
P2P What are theOpportunities and Challenges?
Who Sends the Funds?
22
Profile of theRemittance Consumer

• Participants in cross-border remittances vary by
  remittance corridor
• Overall, senders are characterized as
• Male
• Younger
• Employed
• Having minimal bank relationships
• Using technology less
• Sending money cross border 8 to 12 times per year
• An average of 2,800 USD per remitter is sent
  annually

23
P2P What are theOpportunities and Challenges?
What are the Challenges?
24
Until Now, Banks Have Not Focused on Cross-border
Remittances

• Traditional wire transfers are highly manual and
  time consuming

Branch economics are unfavorable for providing
one off services for non-customers
No cost-effective systems to support small dollar
transfers (280)

• SWIFT and ACH networks were designed primarily
  for large funds movement

A significant percentage of P2P participants have
been a low priority

• Banks historically have not developed strategies
  to attract immigrant consumers into branches
• Recipients are largely underserved
• Certain immigrant populations retain a distrust
  of traditional banks and use them infrequently

25
Banks are Well Positioned to Offer Cross-border
Services
Core competencies and assets include

• Transaction risk management
• AML compliance methodologies
• Technology platforms and networks
• Card program capabilities
• Retail merchant relationships

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MasterCard P2P Money Transfer Solutions
MasterCard Payment Transaction Solutions
Leveraging Card-Based Technology
MasterCard Payment Transactions
Money Transfer Service Online and Agent-Based
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MasterCard PaymentTransaction Solutions
Leveraging Card-Based Technology
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Banks Can Leverage Card-based Technology to
Capitalize on P2P Money Transfer

• 67 of recipients indicate their desire to
  receive funds on a money transfer card instead of
  going to an agent to get cash
• 58 of recipients indicate interest in adding
  their own funds to a card
• Penetrating the global money transfer opportunity
  requires the global processing and connectivity
  of todays modern electronic payments industry
• Card-based capabilities and economics offer
  improved security, convenience, and value

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Different Customer Segments Require Different
Business Models...
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Bank P2P Funds Transfer Programs Fall into Three
Business Models
Intra-bank Systems Facilitates transfers among
a banks customers. Uses bank branches or bank
agents

• Uses proprietary platforms such as c2it and Chase
  ReadECash
• Bank provides origination capabilities to send
  funds or load prepaid cards over a platform
  limited to bank customers(Example HSBC and
  Yahoo PayDirect)

Bi-lateral Arrangements Two banks agree to
provide funds transfer services among their
respective customers

• Closed system to only participating banks
  (Examples Citi/Banamex, BofA/ Santander,
  HSBC/Bital, Wells/Bancomer)

Open Alliances Banks participate in a
centralized funds transfer program

• Association offers platforms and networks that
  can serve any members customers (Examples
  MasterCard MoneySend, VISA PayDirect)

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How Do We Tap Into the Billions in Cash That are
Sent Globally Between Family and Friends?
32
MasterCard Flexible Solutions
MasterCard products and platforms can be
configured to meet a wide variety of business
strategies

• Products
• MasterCard Payment Transaction
• Maestro Payment Transaction
• Prepaid Cards
• Family Account

• Platforms
• RPPS
• Prepaid Service
• MoneySend (Pilot)

33
MasterCard PaymentTransaction Solutions
MasterCard Payment Transactions
34
MasterCard Payment Transactions
MasterCard has created the payment transaction to
support a variety of off-line and online P2P
Money Transfer Models

• What is the payment transactions
• How does it work?
• What P2P Money Transfer Models does it support?
• What does a member have to do to use the new
  payment transaction?

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What is the Payment Transaction?

• The payment transaction is a credit to an
  account without an off-setting debit
• The payment transaction brings positive
  interchange for the issuing member posting the
  credit
• Payment transactions have been created for both
  MasterCard and Maestro branded products
• The current interchange on both the MasterCard
  and Maestro account is .53 USD plus 19BP

36
How Does it Work?

• MasterCard/Maestro payment transactions are used
  in end-to-end P2P Money Transfer solutions that
  rely on a Payment Service Provider to accept
  value, create the payment transaction, and enter
  it into the MasterCard system
• The payment service provider acts as a merchant
  and pays the reverse interchange
• The payment service provider interacts with the
  sender and receiver and charges a service fee
• Originating value can be from cash, bank
  accounts,or credit cards

37
What P2P Money Transfer Solutions Do They Support?
The MasterCard/Maestro payment transactions were
designed to enable P2P Money Transfer services
that provide both online and offline service,
domestically or globally. Models include, but
are not limited to

• Internet P2P Money Transfer services accessed by
  PCs, kiosks, or other internet devices
• Agent based services that can accept cash
• Bank to bank services that move money onto credit
  or debit accounts

38
What Does a Bank Have to Do to Use the New
Payment Transactions?
Member banks can use the new MasterCard/Maestro
payments transactions in two ways

• Recipient Banks complete the maintenance
  required to become certified to accept the
  payment transactions and complete the AML
  compliance review
• Sending Banks develop in-house capability or
  partner an outside payment service provider
  platform to generate the payment transaction,
  (e.g., Yahoo, CertiPay). Complete an AML
  compliance review
• AML Anti-money laundering See U.S. Patriot
  Act and FATFA

39
Benefits of the Payment Transaction
Enabling the MasterCard/Maestro payment
transaction provides instant access to P2P Money
Transfer

• Banks can accept transactions from any
  participating funds transfer service
• Banks can receive P2P Money Transfer transactions
  from any domestic or global originating point
• Banks require no special development after
  becoming certified to create or accept the
  payment transaction
• Banks can rely on the MasterCard global systems
  for P2P Money Transfer settlement and
  connectivity
• Banks can use the payment transaction in a wide
  range of service designs

40
Consumer Benefits
Using the MasterCard/Maestro Payment Transactions
will provide a P2P Money Transfer Service that is

• Usually less expensive than agent-to-agent funds
  transfer services
• Easier and safer than receiving and keeping cash
• Easily accessed a hundreds of thousands of ATMs
• Used immediately in millions of merchants
  worldwide

41
The Role of the Payment Service Provider
Money Transfer ServicesOnline and Agent-Based
42
What is a Payment Service Provider?
A payment service provider stands between the
sender and the receiver

• Business Model Qualified merchant or Acquirer
• Target Consumer Segment Fully banked or
  underserved
• Channels Online or Face-to-Face
• Economics Transaction-based fees, interchange,
  and FX
• Key Challenges Ensure banks in the receiving
  markets are prepared to accept the payment
  transaction

43
Payment Service Provider in an Online P2P Service
Banks leverage online payment service providers
to support money transfer

• MasterCard Solution MasterCard/Maestro Payment
  Transaction
• Target Consumer Segment Fully banked and
  technology aware
• Channels Online or kiosk
• Economics Transaction-based fees, interchange,
  and FX
• Key Challenges Ensure banks in the receiving
  markets are prepared to accept the payment
  transaction

44
Online P2PMoney Transfer Service

• A member or co-brand partner offers the ability
  to send money to family and friends over their
  online website
• Sender and recipient register to be a part of the
  service
• The sender selects the account that will be used
  to fund the transfer and identifies the sender
  and a pass code
• The sender reviews and accepts the fees and
  foreign exchange rates if applicable
• The recipient receives an email message with a
  link to the P2P Money Transfer Service
• The recipient enters their name, the pass code,
  and the MasterCard account to which the money
  will be transferred

45
Online P2P Money Transfer Service
MasterCard/Maestro Payment Transaction enables
funds to be place on any credit or debit card
from bank or card account via an online payment
service provider.
46
Online P2PMoney Transfer Service
How a Member Makes Money

• Service Provider
• Service fees
• Foreign exchange
• Acquirer Bank
• Discount Rate
• Receiving Bank
• Account fees
• Interchange (Payment Transaction and Usage)

47
Online P2PMoney Transfer Service
How the Member Will Sell It

• Online Promotion
• Pop-up ads
• Portal ads
• Email ads

48
Payment Service Provider in an Agent-Based P2P
Service
Banks leverage retail agents and a payment
service provider to support money transfer

• MasterCard Solution MasterCard/Maestro Payment
  Transaction
• Target Consumer Segment Underserved
• Channels Retail agent
• Economics Transaction-based fees, interchange,
  and FX
• Key Challenges Establishing a retail
  relationship that appeals to the under served
  marketdeveloping internalor outsourcing payment
  service provider capability

49
Agent-based P2PMoney Transfer Service

• A member or co-brand partner offers the ability
  to send money to family and friends through a
  network of retail agents
• Sender and recipient register to be a part of the
  service recipient is given an registration
  number and provides it to the sender
• The sender goes to the retail store with cash,
  the name of the recipients name and ID number
• The retail agent submits the transaction to the
  payment service provider who translates the ID
  number to the recipients registered PAN
• The transaction is sent to the MasterCard system
  through the acquirer
• The payment transaction is accepted by the
  recipients card issuer

50
Agent-based P2P Money Transfer Service
MasterCard/Maestro Payment Transaction enables
funds to be place on any credit or debit card
from bank or card account via an online payment
service provider
Debit Card Issuers
Bank Branch
MasterCard SystemsPayment Transactions
PSP Provider
Acquirer
PSP Provider Agent
Credit Card Issuers
51
Agent-based P2PMoney Transfer Service
How a Member Makes Money

• Agent
• Commission
• Foreign Exchange
• Acquirer Bank
• Discount Rate
• Recipient Bank
• Account fees
• Interchange (Payment Transaction and Usage)

52
Agent-based P2PMoney Transfer Service
How the Member Will Sell It

• Targeted Local Market Promotion
• Local print
• Community Promotion(Ethnic associations, church
  groups)
• Selected branch advertising

53
MasterCard P2P Money Transfer Solutions
MasterCard P2P Prepaid Cards
Introduction The MasterCard Prepaid Card
Opportunity
The Sender Centric Model
The Recipient Centric Model
MasterCard Prepaid Services
54
MasterCard P2P Prepaid Cards
Introduction The MasterCard Prepaid Card
Opportunity
55
MasterCard P2P Prepaid Cards
Prepaid cards can play a role in a number of P2P
Solutions

• Effective for targeting underserved/unbanked
  segments
• A solution MasterCard members can support now
  using existing infrastructure
• Low cost of entry
• Sender-centric and/or receiver-centric programs

56
Consumer Benefits of Using Prepaid Cards for P2P

• Research indicates recurring money transfer
  consumers find prepaid cards an attractive
  proposition
• Provides greater security and privacy than
  traditional transfers
• Offers greater convenience for both sender and
  recipient
• Can be less expensive for the consumer than
  current funds transfer options
• Improves the personal self-worth of the
  underserved remittance customer

57
Opportunities for Members at Either End of Funds
Flow
Supports Issuers in Sending and Receiving"
Countries

• Sending modelIssuer offers a prepaid card
  account to sender with an additional access card
  for the recipient
• Receiving modelIssuer offers recipient a card
  account to which funds are transferred by a
  participating sender

58
MasterCard P2P Prepaid Cards
The Sender Centric Model
59
P2P Prepaid CardSender Centric Model

• A single prepaid account with two cards at a bank
  in the sending country
• Sender and recipient name, address, and ID
  captured for AML compliance
• Secondary card is delivered to recipient
• Recipient uses cards at ATMs or POS
• Sender can reload at designated locations using
  the primary card and photo ID for authentication
• Sender has equal access to funds

60
Sender Centric Model
MasterCard Prepaid Cards using any of the
MasterCard family of brands and two or more
authorized users.
61
P2P Prepaid Card Programs
How a Member Makes Money

• Fees and float
• Annual fees
• Loading fees
• Interchange (when used at POS or with the
  payment transaction)
• Servicing fees
• FX on sender centric model
• Float

62
P2P Prepaid Card Programs
How the Member Will Sell It

• Targeted Local Market Promotion
• Local print
• Community Promotion(Ethnic associations, church
  groups)
• Selected branch advertising

63
MasterCard P2P Prepaid Cards
The Recipient Centric Model
64
P2P Prepaid CardRecipient Centric Model

• A single prepaid account at a bank in the
  receiving country
• Recipient is the primary account holder name,
  address, and ID captured for AML compliance
• Recipient uses cards at ATMs or POS
• Sender can send funds at designated branches or
  retail locations that are certified to send a
  payment transaction

65
Recipient Centric Model
MasterCard Prepaid Cards using any of the
MasterCard family of brands
BankBranch/Agent
PSP
MasterCardSystems
Issuer
AccountHolder
Sender
ATMs
66
P2P Recipient CentricPrepaid Card Programs
How a Member Makes Money

• Fees and float
• Annual fees
• Loading fees
• Interchange (when used at POS or with the
  payment transaction)
• Servicing fees
• Float

67
P2P Recipient CentricPrepaid Card Programs
How the Member Will Sell It

• Targeted Local Market Promotion
• Local print
• Community Promotion(Ethnic associations, church
  groups)
• Selected branch advertising

68
MasterCard P2P Prepaid Cards
MasterCard Prepaid Services
69
MasterCard Prepaid Services

• MasterCard Prepaid Cards can be used with any
  proprietary or third party prepaid platform
• Members are free to use a prepaid platform of
  their choice

However, MasterCard Prepaid Services has features
that makes it ideal for global funds transfer
70
MasterCard Prepaid Services
What is MasterCard Prepaid Services?

• Prepaid is one of the processing services
  MasterCard delivers today using its core
  processing infrastructure
• Credit (Banknet)
• Debit (Banknet/MDS)
• Prepaid (PDC)
• Gateway Services

71
MasterCard Prepaid Services

• MasterCard processing services support prepaid
  programs using any of the MasterCard family of
  brands
• Maestro/Cirrus online, PIN
• MasterCard/MCE signature
• MasterCard authorizes, clears and settles prepaid
  transactions, and manages balance information on
  behalf of issuing members

72
MasterCard P2P Money Transfer Solutions
MasterCard Family Account
The MasterCard Family Account
73
The MasterCard Family Account

• A convenient "passive" recurring transfer
  solution
• No need for either party to take action unless
  parent wants to change limit
• A low risk way to give a MasterCard card to teens
  and young adults
• Parent is accountholder
• Can also be used for extended families or
  household employees

74
Family Card
Uses traditional bank card platform with card
level controls

• MasterCard Solution MasterCard Family Card
• Target Consumer Segment Fully banks consumers
• Channels Bank branches or website
• Economics Account fees, interchange, and
  interest income
• Key Challenges Limited to issuer customers

75
Family Card
Components and Customer Experience

• Components
• Bank card management platform
• Bank branch or website
• MasterCard branded cards with card level controls
• Customer Experience
• Primary account holder designates an authorized
  user
• Primary account holder sets spending and credit
  limits
• Authorized user uses card at POS or to access
  cash at ATMs or bank branches

76
Family Card
How a Member Makes Money

• Interest and Interchange
• Interest on larger outstanding balances
• Interchange from multiple users

77
Family Card
How the Member Will Sell It

• Targeted Direct Response
• Direct Mail
• Out Bound Calls
• Targeted Take-one Applications

78
Family Card
Featuring MasterCard Branded Cards
79
MasterCard P2P Money Transfer Solutions
Supporting Bank Business Models
Intra-Bank Systems Model
Bi-Lateral Model
Open Alliance Model
80
MasterCard P2PPaymentMoney Transfer Solutions
Intra-Bank Systems Model
81
Intra-Bank Systems Model
Uses bank proprietary systems to move funds among
bank accounts

• MasterCard Solution MasterCard RPPS
• Target Consumer Segment Banked customers
• Channels Personal computers, PDAs, phone, or
  branch kiosks
• Economics Transaction-based fees or bundled
  with other bank services
• Key Challenges Limited to banks on common
  platforms limited to consumers with
  electronic access

82
Intra-Bank Systems Model
Components and Customer Experience

• Components
• Electronic terminal (PC, phone, PDA, or kiosk)
• Bank branded Internet portal
• Electronic transaction processor (e.g.,
  CheckFree)
• Global network and transaction manager
  (MasterCard RPPS)
• Customer Experience
• Customer signs up for electronic banking service
• Accesses funds transfer option
• Enters recipient name and bank account
  information
• Selects source of funds from accounts with the
  bank
• Approves the transaction for delivery
• Recipient receives the funds automatically in DDA
  or credit card account

83
Intra-Bank Systems Model
Using MasterCard RPPS, Prepaid Services, Global
Network
MasterCard Remote Payment and Presentment Service
allows consumers who use electronic bill payment
channels to send money to other bank accounts or
credit cards.
84
MasterCard P2PPaymentMoney Transfer Solutions
Bi-Lateral Model
85
Bi-Lateral Model
Banks develop a funds transfer among their
customers using an agreed upon system

• MasterCard Solution MasterCard/Maestro Payment
  Transaction
• Target Consumer Segment Banked customers
  underserved
• Channels Bank branches or electronic channels
• Economics Transaction-based fees along with
  float
• Key Challenges Not a global solution

86
Bi-Lateral Model
Components and Customer Experience

• Components
• Payment Service Provider platform. (Acquirer or
  merchant)
• One or more bank account(s). (DDA or Credit)
• Bank branch, bank kiosks, or bank agent retail
  locations
• MasterCard payment transaction
• Customer Experience
• Sending customer signs up for bank branded funds
  transfer service
• Bank captures user profile and performs
  authentication
• Sender selects service from a terminal or is
  supported by a branch teller
• Sender identifies the recipient in the partner
  bank via a program ID
• Funds are sent to partner bank via PSP platform
  using the MasterCard/ Maestro payment
  transaction to credit card account or debit
  account

87
Bi-Lateral Model
Using the MasterCard Payment Transaction
MasterCard/Maestro Payment Transaction enables
funds to be placed on any credit or debit card
from many sources of value Credit Card, DDA, or
Cash.
88
MasterCard P2P Money Transfer Solutions
Open Alliance Model
89
Open Alliance Model
Banks leverage an open alliance to provide their
customers with global funds transfer capability
MasterCard Solution MasterCard/Maestro Payment
Transaction Target Consumer Segment
Underserved Channels Participating retail
agents Economics Transaction-based fees,
interchange, and FX Key Challenges Engage
underserved consumer segment
90
Open Alliance Model
Components and Customer Experience

• Components
• Payment Service Provider platform (Acquirer or
  Merchant)
• One or more bank account(s). (DDA or Credit)
• Bank branch, bank kiosks, or bank sponsored agent
  retail locations
• MasterCard/Maestro payment transaction
• Customer Experience
• Sending customer signs up for bank branded funds
  transfer service at participating retail agent
• Retail agent captures user profile and performs
  authentication
• Sender identifies the recipient in the partner
  bank via a program ID
• Funds are sent to any qualified MasterCard
  branded card using the MasterCard/Maestro
  payment transaction

91
Open Alliance Model
Featuring MasterCard Payment Transaction
MasterCard/Maestro Payment Transaction enables
funds to be placed on any credit or debit card
from cash or card at participating retail or
Internet agents.
MasterCard has just announced MoneySend an
On-Behalf-OfP2P Service for the European Union
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MasterCard P2P Money Transfer Solutions
Conclusion Next Steps
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MasterCard Solutions Can Support Most Bank
Business Strategies
MasterCard Solution Intra-Bank Bi-Lateral Open
Alliance
Products
Yes
Yes
Yes

• Prepaid
• Family Card

Yes
n/a
n/a
Platforms
Yes
Yes
Yes

• RPPS (U.S. Only)
• Prepaid Services (Global)
• MoneySend (Pilot)

Yes
Yes
Yes
n/a
Yes
T.B.D.
Enabling Technologies
Yes
Yes
Yes

• MasterCard Payment Transaction
• Maestro Payment Transaction

Yes
Yes
Yes
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MasterCard Funds Transfer Card
Next Steps...

• Select customer segment
• Select business model
• Develop product and plan and requirements
• Identify technology platform

The team is ready to support you!
95
MasterCard FundsTransfer Solutions
Consumers transferring money to other consumers
represents a new opportunity for card issuers.
MasterCard envisions a not too distant future
when value is exchanged over a myriad of personal
terminals. However, the business case today for
person-to-person funds transfer is cross-border
remittances. The MasterCard provides cross border
solutions you can implement Today!
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