Security and Fraud Solutions Initiatives: Turning the Threat into an Opportunity.

Security and Fraud Solutions Initiatives: Turning the Threat into an Opportunity

January 31, 2010

About MasterCard

210210 countriescountries

23,00023,000 customerscustomers

55 regionsregions

over 22 billionover 22 billion transactions transactions each yeareach year

1966

Companyformed

Mergedwith EuropayInternational

20022006

Became a publicly traded company (NYSE: MA)

MA

JOR

BR

AN

DS

5,1005,100 employeesemployees

Our customers

Our customers’ customers

CardholderMerchant

Issuing Bank

Acquiring Bank

Franchisor

Processor Advisor

Partnering with our stakeholders

44

Prevention

DetectionRecovery

SecureCode roll out

EMV roll out

2

1Selective Authorisation by issuers

Geo ControlSMS alerts

Empower cardholderSafeTravelSafeGuard

65

Real time fraud risk scoring (EMS)3

• Addressing Cross-Border counterfeit fraud:

• Addressing Card Not Present fraud:

1

2 3

3

5

5 6

MasterCard Rules & Processes

Protecting consumersand merchants

4

4

4

A holistic approach to managing fraud

Source: Best estimates collected from MasterCard customers and regional offices, and QMR. Source: Best estimates collected from MasterCard customers and regional offices, and QMR.

50-7510-25 25-50 75+

EU ATM Penetration: 78% EU POS Penetration: 76%

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EMV-Chip roll outEuropean EMV Deployment is Progressing

A number of key markets are reaching 80% ATM & POS deployment

SEPA wide coverage is anticipated to be 90-95% by January 2011

Initiatives underway to reinforce the EMV mandates for EU stragglers

April 20, 2023 6

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SecureCode = industry standard for e-commerce authentication (« virtual chip&pin ») Number of global merchants offering SecureCode has doubled over the past two years - now stands at ca. 470,000

Ca. 80 percent of SecureCode merchants based in Europe

Over 30 million European MasterCard and Maestro cardholders are currently actively using SecureCode

Romanian banks are increasingly encouraging their cardholders to use SecureCode when shopping online

SecureCode roll outEuropean SecureCode Deployment is Progressing

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Research unveils top 3 needs articulated by consumers: - control - security - flexibility (Source: TNS, 2009)

Today: Barclaycard first bank worldwide to enable their UK customers to set personalised controls and spend limits

Tomorrow: Location-based controls interfacing with smart phones

Empowering CardholdersAddressing needs for security and control