Esquemas de pago para la adquisición de bienes como actividad financiera Javiera Tudela - Vicepresidente MasterCard Worldwide Productos Prepagados Good afternoon, everyone. Welcome to the MasterCard Latin America & Caribbean Advancing Commerce Forum, where it is my pleasure to provide some insights into the developments in the LAC prepaid market.   For those of you who may not know me, my name is Sol Cozzo and I have recently joined MasterCard as Head of Prepaid for LAC. Prior to this, I spent the bulk of my career at Citi in the Consumer and Corporate Cards' business respectively. Most recently, I was responsible for heading up Citi's Corporate Prepaid launch into the LAC Region. Today I will spend some time talking about the magnitude of the prepaid transformation that we are witnessing, and set the context for the LAC Commercial and Public Sector. I will also provide some examples of our partners driving this change.

Disclaimer/Forward Looking Statements The information presented in this document is intended solely for informational purposes and not as individually-tailored advice or specific recommendations for any particular action or investment and should not be relied upon, in whole or in part, as the basis for decision-making or other purposes. This document contains, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on current data, assumptions, and expectations about future events which reflect the best judgment of the Boston Consulting Group and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by these materials. You should review and consider the information contained in our filings with the SEC regarding these risks and uncertainties. All information contained herein, including all forecasts, projections or indications of financial opportunities, are provided on an “as is” basis. You are solely responsible for your use of this information, as well as any decisions made or actions taken in response to such information and MasterCard disclaims any obligation to publicly update or revise any forward-looking statements or information provided in this document. But, before I get underway, just one small piece of housekeeping required by my legal team. Please take a note of the legal disclaimer on forward looking statements.

Una definición, múltiples soluciones Pre•pa•go: medio de pago electrónico pre fondeado que no requiere de una cuenta bancaria Promueve inclusión financiera entre los no bancarizados Es una solución de desembolso confiable y transparente para los gobiernos Genera eficiencias y mejoras de servicios para las empresas y sus empleados Expande las opciones de pago para los bancarizados Que es prepago?

Se estima que el volumen de prepago en LAC llegue a $134 mil millones en 2017 2010 and 2017 Open Loop GDV ($B) Source: Market Sizing Report, Jan 2012 Commissioned by MasterCard +55% +25% 250 millones de adultos en LAC carecen de acceso a servicios financieros hoy1 +44% Source 1: McKinsey and Financial Access Initiative, Half the World is Unbanked, October 2009

Prepago aborda los retos inherentes a economías centradas en el efectivo Prepago ofrece… Sector Público Sector Comercial Ahorro y eficiencia en el desembolso de beneficios Transparencia en el flujo de fondos y verificación del beneficiario Habilidad de asociar beneficios con los mandatos Distribución segura y eficiente de la nómina Reportes y controles simplificados Oportunidad de tarjetizar la base de clientes Nuevos canales de pago For both Governments & Businesses, Prepaid is vastly more efficient than cash or checks. It is our responsibility - as well a phenomenal opportunity – for us as a Brand and/or as Issuers, to partner in order to help governments and corporations EXECUTE on this transition and reap the benefits. For Governments: Prepaid provides greater cost efficiencies. Reduces the risk that funds are diverted from the intended beneficiary. Imposes transparency on transactions, reducing the risk of tax evasion. Ensures benefits are tied to mandates in order to achieve desired behavioral changes. For Businesses: Prepaid reduces the cost of payroll distribution. Simplifies back-office operations. Enables more value extraction from members, through cards that can be used at merchants w/a revenue stream back to the business. Transition: Apart from the efficiencies & advantages to the Government & Commercial sector, it is important to note that benefits will accrue to the Consumer as well.

…y fortalece al Consumidor brindándole servicios financieros básicos Depósito Ahorro Gasto Desembolos seguros Transparencia Rapidez y conveniencia Seguridad Presupuesto Manejo de cuenta Educación financiera Camino al crédito Conveniencia Acceso a pago de cuentas y canales emergentes P2P a bajo costo For Consumers, financial empowerment is a simple proposition: consumers should be able to securely deposit, save and spend money. But this simple proposition is in reality difficult to achieve in a cash-driven economy: Half of the working age adult population globally does not have a bank account. This figure rises to 65% in LAC, and as high as 80% in some LAC countries. These unbanked citizens are financially excluded from basic services. They must rely on cash and informal services to manage their finances. This puts them at risk of theft and leaves them more exposed in financial or health-related emergencies. It also excludes them from cost-effective channels of making payments, such as electronic bill payment or P2P transfers. Those consumers who do have bank accounts still face some of the same challenges. Despite being banked, they may not have access to financial education, smart budgeting tools and convenient/low-cost online and P2P payment solutions. Prepaid addresses these challenges, and thus Commercial and Public Sector initiatives will ultimately empower their employees, citizens and consumers. It’s a win-win.

Plataforma para una suite de soluciones Los tres ejes de prepago: origen de los fondos, carga y uso SUBSIDIOS DE GOBIERNO NOMINA BENEFICIOS AL EMPLEADO VIAJES REGALO GPR Personalizada Firma y/o PIN Acceso a POS Recargable Uso Doméstico Personalizada o sin personalizar Acceso a POS y ATM Uso Doméstico e Internacional Uso Internacional Sin personalizar Firma Recargable (limite de $1000) Sin acceso a efectivo For Consumers, financial empowerment is a simple proposition: consumers should be able to securely deposit, save and spend money. But this simple proposition is in reality difficult to achieve in a cash-driven economy: Half of the working age adult population globally does not have a bank account. This figure rises to 65% in LAC, and as high as 80% in some LAC countries. These unbanked citizens are financially excluded from basic services. They must rely on cash and informal services to manage their finances. This puts them at risk of theft and leaves them more exposed in financial or health-related emergencies. It also excludes them from cost-effective channels of making payments, such as electronic bill payment or P2P transfers. Those consumers who do have bank accounts still face some of the same challenges. Despite being banked, they may not have access to financial education, smart budgeting tools and convenient/low-cost online and P2P payment solutions. Prepaid addresses these challenges, and thus Commercial and Public Sector initiatives will ultimately empower their employees, citizens and consumers. It’s a win-win.

Nuestra misión Fortalecer al consumidor a través de servicios financieros básicos Prepaid is one of the core pillars of Mastercard. As an organization we are making substantial investments across the ecosystem globally to support our partners participating in the prepaid transformation through: Advocacy, Research and Thought Leadership Processor and Program Manager Partnerships Consumer Value Added Services such as budgeting tools, smart discounts and benefits Emerging Payment Channels such as Mobile (which my friend and colleague Alan will cover shortly) Consumer Education & Financial Literacy Let me provide some examples of successful partner programs.

Caso de Estudio Reto Solución Beneficios Sociales El Gobierno de la Provincia de La Pampa quería bajar los costos de envío y distribución de subsidios gubernamentales, eliminar intermediarios y alcanzar mayor transparencia . Solución Lanzamiento de Tarjeta Social MasterCard Recarga mensual Restricción por MCC: alimentos, ropa y útiles escolares Sin acceso a ATM Reporte y monitoreo diarios Speaking of Argentina, here is an example of a program that Mastercard partnered with Gobierno de la Provincia de La Pampa on. Government of La Pampa wanted to find a smarter way to deliver their monthly subsidies, reducing cost, eliminating middle men and increasing transparency. Today – they deliver payments through a Mastercard prepaid card that is reloaded monthly and has merchant category restrictions by program and no ATM access.

Caso de Estudio Reto Solución Vales de Papel – Alimentos y Gasolina En Venezuela, las empresas otorgaban a sus empleados beneficios de alimentación y gasolina a través de vales de papel, y querían reemplazarlos por un medio de pago mas eficiente Solución La tarjeta prepagada MasterCard de NovoPayment que reemplaza los vales de papel: Baja los costos administrativos Mayor seguridad y conveniencia para los empleados We spoke about the Voucher vertical and here is an example. In Venezuela, MasterCard partnered with Banco Venezolano de Credito to provide a card based solution for the issuance of meal benefits. This program: Reduced the cost of handling meal vouchers in over 80,000 locations across Venezuela. Improved the user's experience by migrating from paper to card. Lowered distribution and administration costs to employers. Yet another example where ALL players across the value chain win…the FI, the corporation, the merchant and most importantly the individual.

Caso de Estudio Reto Solución Vales en Papel – Transporte de Carga En Brasil, los camioneros dependían de un voucher en papel para comprar gasolina, $30mil millones en volumen anuales. Aceptación limitada y altas comisiones por transacción creaban ineficiencias . Solución El Gobierno Federal hizo obligatorio el uso del medio de pago electrónico para los servicios de carga MasterCard lanzo la Carta Frete en enero de 2012 Tarjeta hibrida que permite realizar autorizaciones por MCC Transparencia y ahorros Last, but not least, I wanted to touch on the Cargo flow, which represents a BIG opportunity in Brazil. The current volume of paper freight vouchers totals US$ 30B /year of GDV, distributed among 1.2 MM truck drivers. One big challenge with this flow of money in Brazil was that many gas stations were forcing truck drivers to discount paper vouchers at high commission rates (over 10% MDR) and in many cases, also require them to buy oil there. As a result, Federal Government mandated paper freight vouchers to be eliminated and be replaced either thru a DDA (Bank Account) or a Prepaid Card. MasterCard launched Carta Frete in January 2012. This is a hybrid card that supports merchant-level authorization and has created transparency and cost-effectiveness in this flow.

Prepago marca la pauta en la innovación de los medios de pago El mundo está cambiando a un paso acelerado con innovaciones ocurriendo a cada instante Prepago contribuye a establecer las bases para nuevas soluciones de pago Prepago genera eficiencias, conveniencia y transparencia

Soluciones innovadoras habilitarán la inclusión financiera del mañana Innovación tecnológica de los medios de pago Mobile eCommerce Chip P2P MasterCard Bill Pay Cash Reloads Global ATM Network Financial Education And remember, there are over 2.5 Bn Marias around the world, spending over $5 trillion annually. In addition to bringing all the benefits we highlighted with Maria, we are also working to enhance financial inclusion by providing: Access to mainstream Financial Services via mobile phones and by providing the ability to send and receive money across borders, with a click of an app or a the click of a mouse. It is safe to say that we recognize both the NEED and OPPORTUNITY to bring mainstream financial services to the underserved, and so do governments around the world. We are now beginning understand the consumer insights, as well, and have been addressing, but there is much learning and work to do, and I look forward to providing further updates as we make progress. ________________________ Creating and providing the products and services for the underserved segment Delivering convenient, safe, and cost-effective alternatives to cash and checks. Delivering Social Benefits to qualified recipients though prepaid cards. Enabling access via providers relevant to the underserved, saving time and money. Delivering financial education through Partnership with financial literacy and empowerment efforts

Sector Público | SASSA Lanzado en Abril 2012 para distribuir ayuda social a 15 millones de beneficiarios 3 millones de tarjetas emitidas, 10 millones en Q1 2013 “Biometrics” para reconocer huella digital y voz elimina el fraude Evan—fix layout please, and can we integrate the photo(s) in some way? Ahorros estimados de $375 millones a lo largo de cinco años para el gobierno surafricano

Garanti & Turkcell Móvil | CEP-T Paracard Tarjeta prepagada multi-funcional enfocada en el sector joven y en los no bancarizados, con tecnología móvil NFC Parte de una iniciativa de soluciones integrales, incluyendo, servicios de Mobile Wallet Completa funcionalidad en el mundo real, virtual y a través del celular Sistema cerrado de P2P y programa de rewards Incorporate burger king screen cap—goes with second callout Multi-canal de distribución y recarga 350,000 tarjetas emitidas en 10 meses, con alto volumen de P2P

Los integrantes de la cadena valor se rigen por el marco regulatorio local Una solución palpable para el usuario final Quienes son? Existen varios integrantes en la cadena de valor de prepago. Dependiendo de la necesidad por atender o el problema por resolver, tipo de mercado y regulacion, pueden estar presentes algunos de ellos o todos, existen muchos matices. En algunos casos, una entidad puede tener mas de un rol. Pero en líneas generales, hablamos de un banco, nuestra red, PM, Process., Distribuidor, Agente/Sponsor. Los roles y responsabilidades de cada uno son específicos. Como ejecutan? En todos los casos, antes de considerar desarrollar cualquier producto, hay que tener la certeza de que se esta atendiendo la necesidad o el problema del usuario. Pero sobre todo hay que conocer a profundidad la normativa local, seguir las políticas de conocimiento de cliente adecuadas y asegurarse de que se toman medidas de prevención de lavados de activos y fin. En MasterCard hemos desarrollado lineamientos de productos así como mejores practicas que contribuyen al diseño e implementación seguros de prepago. Algunos de los ejemplos los vimos al principio y en el video. Cual es el marco regulatorio? En LAC, existe una ausencia generalizada de un marco regulatorio claro para prepago. Ante esta ausencia vemos los mercados tienden a hacer dos tipos de interpretaciones de la normativa: A favor En contra En Europa por ejemplo, recientemente se publico la normativa de eMoney. Dentro de las innovaciones, se abre el licenciamiento a instituciones no bancarias para emitir el producto. Sin duda con similitudes con la propuesta de SEDES que se esta discutiendo aquí en Colombia. Ahora bien En el caso de Colombia, los productos prepagados comerciales (nomina, beneficios al empleado) pueden implementarse sin problema pero cuando se trata de producto al consumidor, no hay claridad. No es coincidencia que este hoy delante de ustedes precisamente cuando hay una nueva regulacion en puertas: Pago Facil, Pago digital, nuevos integrantes Marco Regulatorio Local KYC Prevención de lavado de activos y financiamiento de terrorismo

Circular Única de Bancos Tendencias regulatorias: Demanda insatisfecha por servicios financieros Estrategia de Inclusión Financiera México Circular Única de Bancos Europa eMoney Alineamiento con regulación y estructura Mejoras en la protección al consumidor Eliminación de restricciones y barreras de entrada Creación de cuatro niveles de apertura de cuentas Prepago desaparece como término Algunos productos quedan fuera de la regulación Palabras clave: Pago facil, pago digital, Superfinanciera, Deposito Electronico, Sociedad Especializada en Deposito Electronico (SEDE), Esquemas multiples de pago anticipado de bienes y servicios (EMPA), eMoney Regulacion mexicana Tendencias… Demanda insatisfecha por servicios financieros

Marco regulatorio favorable que permita alcanzar metas y crecer orgánicamente Rigurosidad y vigilancia financiera para los integrantes de la cadena de valor Una definición, múltiples soluciones Origen de los fondos, carga y uso Mejora en los procesos: Trámites simplificados y transparentes Evolución del ecosistema de medios de pago: nuevas tecnologías y canales de distribución Palabras clave: Pago facil, pago digital, Superfinanciera, Deposito Electronico, Sociedad Especializada en Deposito Electronico (SEDE), Esquemas multiples de pago anticipado de bienes y servicios (EMPA), eMoney Regulacion mexicana Tendencias…

Gracias Thank You for being here, let’s continue to EXECUTE on these challenges, we’ve come a long way and have a very exciting journey ahead – TOGETHER.