Payment Linked Rewards in the Digital Age Mark Roper CardLinx Europe 23rd February 2021 The changing payments environment

Digitisation Market Transformation Regulation New Technology • Acceleration of electronic • Traditional players • Greater regulation imposed • Payments infrastructures payments in place of cash expanding beyond their core by governments, states accelerating multi-rail through Tech and M&A and regulators strategies (e.g. open • Greater use of frictionless banking) payments including • New breed of payments • De-globalisation of contactless and biometrics competitors entering with standards and processes • Next generation unique models technologies– , IoT, • E-commerce retail sales • Increased expectations of Blockchain and AI-- growth will continue to • Open Banking and Fintech companies role in society could transform outpace in-store sales creating change in banking commerce • Emergence of digital super • Ubiquity of data and powers driving change connected devices will heighten focus on data security and privacy

Driven by increasing consumer demand for speed, simplicity, transparency and value

2 The shift to digital commerce has created an irrevocable change in consumer behaviour

Shift to Contactless Increased Digital Spend Adoption Digital Banking

48% 48% 72% US consumers used digital US consumers more likely to use Rise in the use of Fintech apps5 channels to shop in the first contactless cards since the 3 months of the Covid-19 pandemic pandemic1 57% 51% Of consumers say they will continue Of consumers said digital banking 3X- 4X to use contactless payment post- would be their preferred method of 4 pandemic 6 Expected growth in e-commerce banking post pandemic volumes compared to physical until 20232 69% Of retailers have seen contactless transactions rise 4

1. BCG Consumer Sentiment Snapshot 6/20 2. BCG Global Payments 2020 3. Payments Journal survey 3/20 4. National Retail Federation and Forester Survey 6/20 3 5. EY EMIEA financial services report 1/21 6. Deloitte Retail Banking Survey 3/20 New players are moving into payments

Fintechs Global eco-systems Marketplace platforms

Payments are attractive for….

• The large customer base • Legacy infrastructure holding back traditional players Digital payments Social platforms Other sectors • New economic models driven by data • Different business motivations

4 GAFAs have entered the fray

Revenue (2019) $274B $281B $160B $70B

Core Electronic E-commerce Search Social media Business hardware platform engine platform Payments can enable diversification, new Revenue Consumer Marketplace Digital Digital revenue and better Driver electronics web services advertising advertising customer data • Customer • Data • Increased Payments Experience • Customer Consumer • Data • Cost Reduction Engagement Objectives Engagement • Merchant Value and retention

5 Technology development will underpin consumer shopping and payment behaviour

Last Physical Device speed impacting 5G Networks century Store shopping experience

2000 Websites Internet Every device becomes of Things a commerce device

Mobile apps Changing the shopping 2013 and digital Virtual Reality wallets experience

2018 Connected Artificial Personalisation and commerce Intelligence real-time solutions

Future Digital Voice Intelligent shopping commerce Recognition assistants

6 Shopping & payments will be re-imagined with new commerce technology adoption

The Phone Retail New Technology Social • QR codes and Apps • Drive thru grocery • Pay by face recognition • Social shopping in restaurants experiences • Drone pick • Contactless check-in, and delivery • Voice assistants • Livestream unlock hotel door shopping events • Virtual fitting rooms; contactless checkout

7 Meeting this changing landscape Valuedynamx: the leading provider of global loyalty commerce & personalised offer networks

We provide products and rewards that enable our client brands to more frequently engage their customers, leading to more profitable and long-term relationships. eCommerce Card Linked

Earn Portals Earn Offers • 39 client deployments, 300m+ audience • 7m transactions / £3bn consumer spend p.a. • Network of 50,000+ retail partners • 5 core propositions covering Earn & Online Multi-channel Redemption; Online & Offline; Spend Tracking • Data driven targeting & card linking capabilitiesdriving future acceleration eCommerce Pay With Redemption Points

Stores Redeem

9 Actionable data insights across propositions

Valuedynamx Data Ecosystem: Purchase data and Behavioural data

Consumers Merchant Partners Program Partners 360 Degree Valuedynamx Machine learning models will be used Enhanced data will improve Higher ROI across all exposure Data Ecosystem to Target & Personalise. Identify ROI reporting, merchant channels supported by personalised preferences to predict and target best reach and sharing actionable marketing, content and customer offer at the optimal conversion rate insights to increase offer journeys. at the best time across the combined conversion. product propositions. Card Data Redeem Account Store Data Data

Customer Single Online Customer 3rd Party Earn Data View Data Pay w ith Points Data

10 Payment Linked Rewards – the next steps

Single Customer View

Card & Payment Affiliate & Linked Offers Valuedynamx Data Ecosystem: Purchase data and Behavioural data Merchant Offers

Enhanced New advertiser Real-time merchant propositions ‘-up’ cashback Rewards campaigns redemption Exchange

Converged Multiple bank account SKU level New ways Offer linking - via Open offers to ‘Pay With Marketplace Banking Points’ Leading innovation in payment linked rewards

11 Thank you!