FIDO Munich Seminar In-Vehicle Payment Trends.pptx

FIDO Munich Seminar In-Vehicle Payment Trends.pptx

1. In-Vehicle-Payment How the vehicle learnt to pay

2. The surge in digitalisation is driven by the growth of connected devices (1) Cisco Annual Internet Report (2018-2023) White Paper https://www.cisco.com/c/en/us/solutions/collateral/executive-perspectives/annual-internet-report/white-paper-c11-741490.html . (2) eMarketer – Global Ecommerce Forecast Report May 2021: Ecommerce Continues Strong Gains Amid Global Economic Uncertainty (3) Statista, https://www.statista.com/topics/3881/online-shopping-in-europe/#dossierKeyfigures , July 2021 (4) VisaNet Data, July 2021, https://www.visa.co.uk/about-visa/newsroom/press-releases.3088603.html > 4 X more connected devices in Europe than population by 2023 1 65 % of global e-commerce sales are transacted on mobile devices 2 311 m active European e-commerce consumers 3 40 % increase in e-commerce transactions during the pandemic in 20 European countries 4

3. Growth of Connected Car & In-Car Payments Growth of Digitalization & Adopting the Agency Model Shift Toward Electrification Digital disruption and sustainability are revolutionising the automotive industry Picture: Picture from PowerPoint Stock Images

4. The automotive industry is shifting gears Capgemini Invent, 2020, Agency Sales Model - Automotive-Agency-Sales-Model_POV_Capgemini-Invent.pdf . Automotive News Europe, 2022, Adopting the agency model: How OEMs are mastering a new retail approach: Sponsored content provided by MSX International - https://europe.autonews.com/sponsored/adopting-agency-model-how-oems-are-mastering-new-retail-approach-mastering-new-retail . 75% of consumers expect to be able to purchase their next car online 1 95% of consumers require a seamless, simple, and efficient ordering process 1 New customer journeys COVID-19 was a catalyst for digitalization in automotive sales 1 Growth in EV sales is also pushing a new wave of consumers towards online purchases and omni-channel experiences 2

5. Global connected car* market expected to reach 192 Billion U.S. dollars in 2028 Statista, 2021, Size of the global connected car market between 2019 and 2020, with a forecast through 2028 - https://www.statista.com/statistics/725025/connected-cars-global-market-size-projection/ . Market Size in Billion U.S. Dollars *Connected car is defined as a car that can be linked to other services and devices via a network ** BMW.com Experts define a connected car as a car that can be linked to other services and devices via a network. Along with laptops and mobile phones, this also includes other connected car technology, your own home, office, or parts of infrastructure such as traffic signals or emergency centres **

6. “ By 2026, there will be almost 95.2 million vehicles worldwide making payments, from just 2.3 million in 2021. Juniper Research Juniper Research, 2021, In-vehicle Payments: Market Forecasts, Opportunities & Challenges 2021-2026 - In-vehicle-Payments-2021-2026-Strategy-Forecasts.pdf (visa.com) )

7. 71% of all commuters would shop more if the ability to shop and pay were integrated into their cars of drivers think it would be useful if their vehicle’s HMI allowed them to order food or coffee for pickup 69% Say it would be useful to be able to pay for fuel Customer preferences indicate a high interest in an in-car option Star, 2021, How OEMs can drive adoption of in-car payment solutions while improving customer experience - In-car payment solutions | Star Trend Report Data has been provided by TSYS study, Xevo’s Connected Car Report, 2018. 75%

8. Features on demand Service EV Charging Parking Petrol Market place Pre-Ordering There are numerous use-cases for in-car payment Picture from PowerPoint Stock Images

9. Besides technology, regulation also plays a role - Strong Customer Authentication These are only examples European Banking Authority imposes Strong Customer Authentication (SCA) for all electronic transactions through PSD2 regulation Comision Nacional Bancaria y de Valores (CBBV) imposes Strong Customer Authentication for all electronic payments by March 26 2019 Payment Association of South Africa imposes 3D Secure on all online credit card transactions Reserve Bank of India (RBI) mandates multi-factor authentication for transactions >2000rupees Monetary Authority of Singapore imposes on all Singaporean banks the use of 3-D Secure based on OTP SCA regulations coming into play in the nearby future

10. Our vision is to create options that offers an in-car payment experience that's universal , offering the security and reliability you've come to trust with Visa.

11. The solutions for in-vehicle-payment with Visa A simplified construction kit for implementation Visa Token Service (VTS) [Security] FIDO [Authentication in-car] Visa Cloud Token Framework (CTF ] [Device – binding] Visa Payment Passkey Service to validate authentication [FIDO-Server] [Liability Shift, Scale and Compliance] Issuer recieves authentication evidence and can make authorization decision [Transaction decision] Qualifies for liability benefits Helps support SCA compliance (in EU) Increased security with tokens Seamless authentication UX (the right amount of friction) using FIDO Register once, use everywhere No need for SMS OTPs or passwords, phishing resistant Consistent & familiar experience Reduced fraud Reduced declines - increased customer satisfaction Reduced cost of authentication solution maintenance Merchants Cardholders Issuers