General Methodology of Market Reports

Secondary Market Research  The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for reported data. As a result, companies gain a precise and unbiased impression of the market situation.  Cross referencing of data is conducted in order to ensure validity and reliability.  The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several sources. If this is the case, all sources are mentioned on the chart.  The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart. Definitions  The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact definition used by the source (if available) is included at the bottom of the chart. Chart Types  Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple answers were possible, which is noted at the bottom of the chart. Report Structure  Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents, management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures. Notes and Currency Values  If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.  When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR values are also provided in brackets. The conversions are made using the average currency exchange rate for the respective time period. Should the currency figure be in the future, the average exchange rate of the past 12 months is used. 4 METHODOLOGY OF THE CURRENT REPORT

Report Coverage  This report covers the online payment market in Asia-Pacific. It takes into account a wide definition of online payment, including payment methods used in online shopping and mobile payment, such as remote and proximity payments.  The major countries in the region are covered, while data availability varied across the markets.  The report includes data mostly published within the previous 12 months. The exact date of publication of the source is stated on each chart. The time period which the data refers to differs by source. Report Structure  The global chapter opens the report, featuring an overview of global online and mobile payment developments.  Next, information about regional development is included.  The rest of the report contains country-specific information. Countries are grouped by advanced and emerging markets. Within each group, the countries are presented in the descending order of B2C E-Commerce sales.  Depending on data availability, the following types of market information are included: payment methods most used by online shoppers, breakdown of E- Commerce sales by payment methods, number and value of online/mobile payment transactions, mobile payment user penetration and consumer awareness of innovative payment means. Not all the mentioned types of information are available for each of the covered countries.

5 DEFINITIONS

The following expressions and definitions are used in this report*: Transfer of money made over the Internet following a consumer’s payment command, includes payments for product and . ONLINE PAYMENT service purchased in B2C E-Commerce and M-Commerce. A wide definition of mobile payments includes payments made remotely in M-Commerce and proximity payments made in- . MOBILE PAYMENT store, such as via QR code scanning and NFC technology. A mobile payment where the merchant and the consumer are present in the same location and the interaction between the . PROXIMITY MOBILE PAYMENT consumer’s device (card, mobile device) and the POS is conducted using a proximity technology (e.g. NFC). Near Field Communication is a set of standards to create radio communication by bringing devices close together or . NFC & CONTACTLESS having them touch each other. In that way, contactless data exchange and contactless payment transactions using an PAYMENT NFC-enabled smartphone or other mobile device can take place. Similarly, contactless payments can be made by credit and debit cards enabled with the contactless technology. Generally refers to payment methods other than credit card or bank card payments. Widely defined, alternative online payment methods include bank transfers and direct debit, digital wallets, pre-paid cards and private label cards, invoice, . ALTERNATIVE PAYMENTS and digital currency. May also include cash on delivery and card schemes by local companies other than global card brands. A prepaid digital account, allowing users to store money and use it in online or mobile transactions. The examples of E- . E-WALLET/DIGITAL WALLET Wallets or digital wallets include Alipay and PayPal. A software solution that enables consumers to store payment credentials, such as credit or debit card information, and use the stored credentials to pay digitally for transactions made in-store, online or via mobile. Mobile wallets are installed on . MOBILE WALLET mobile devices which are used to complete payments. The examples of mobile wallets include Apple Pay, Samsung Pay and Google Pay. Mobile wallets are often included in the broader category of E-Wallets or digital wallets. Electronic payment solutions for retail which are available 24/7/365 and thus result in immediate or close-to-immediate . INSTANT PAYMENTS interbank clearing of transactions and crediting of the payees’ accounts and confirm the payment to the payer after payment initiation. . B2C E-COMMERCE The sale of products (and services) through electronic transactions via the Internet from businesses to consumers. M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through transactions via mobile . M-COMMERCE devices. a payment platform or service that allows shoppers to receive goods/services prior to making a payment by splitting the . BUY NOW, PAY LATER (BNPL) payment across a set time period or pay back the full amount later. Immediate or faster payments that allow businesses and consumers to make and receive payments in real time, providing . REAL-TIME PAYMENTS convenience, speed, and faster availability of funds. Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective charts 6 TABLE OF CONTENTS (1 OF 13)

1. Management Summary 2. Global Developments • Online & Mobile Payment Post COVID-19, August 2021 • Value of Payments, in USD trillion, by Region, and by Pre- and Post-COVID-19 Estimates, 2010, 2014, 2018, 2019 & 2020e • Top Online Payment Methods, in % of Respondents, August 2020 • Cash Usage in Mature Markets, by Countries, incl. Japan, Singapore, South Korea and the US, in % of Total Transactions Volume, 2010 & 2020e • Cash Usage in Emerging Markets, by Countries, incl. Indonesia, India, Mexico and China, in % of Total Transactions Volume, 2010 & 2020e • Number of Cashless Transactions, in billions, CAGR, in %, 2020, 2025f & 2030f • Proximity Mobile Payment Users in Select Countries, in % of Smartphone Users, 2021e • Mobile Wallet Adoption Rate, in % of Respondents, 2020 • Share of QR Code Payments, in % of All Digital Wallet Transactions, 2020 & 2025f • Number of Real-Time Payment Transactions in Select Countries, incl. India, China and South Korea, in billions, 2020 • Perception of Cryptocurrency, in % of Millennial Consumers, March 2021 • Number of Users Making Online Payment With Facial Recognition, in billions, 2020 & 2025f • Number of Users Who Will Be Confirming Transactions With Voice Recognition, in millions, 2020 & 2025f • Top Payment Methods Consumers Consider Using In the Next Year, in % of Consumers, March 2021 • Top Payment Methods Available, by B2C and B2B, in % of Payment Decision-Makers, 2020

3. Asia-Pacific 3.1. Regional • Online & Mobile Payment Post COVID-19, August 2021 • Value of Online Payments in Select Countries, in USD billion, 2020e • Share of Travelers Who Used Buy Now Pay Later Payment Method, in % of Adult Travelers, 2020 • Breakdown of Payment Methods, in % of Consumers, September 2020 • Yearly Transaction Values, in AUD billion, Active Users, in million, and Active Merchants, by Selected BNPL Providers, December 2020

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3. Asia-Pacific (Cont.) 3.2. Advanced Markets 3.2.1. Japan • Top Payment Methods Used At Least Once a Month, in % of Respondents, 2019 & 2020 • Top Payment Methods, in % of Adults, July 2021 • Breakdown of Awareness and Usage of Contactless Payments via a Smartphone, in % of Adults, July 2021 • Cashless Payment Usage Frequency Change Compared to a Year Before, in % of Respondents, November 2020 • Top Reasons for Using Cashless Payment Methods In-Store, in % of Respondents, November 202 • Breakdown of Top Payment Services via a Smartphone, in % of Adults, July 2021 • Top Used QR Code Payment Service Providers, in % of Adults, July 2021 • Number of Real-Time Payment Transactions, in billions, 2020 & 2025f • Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

3.2.2. South Korea • Electronic Payment Value, in KRW billion, and Volume, in millions, Y-o-Y Change, in %, by Payment Method, 2019 & 2020 • Breakdown of Top Payment Methods When Shopping Online, in % of Adults, December 2020 • Number of Real-Time Payment Transactions, in billions, 2020 & 2025f • Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

3.2.3. Australia • Value of B2C Payments, by Type of Payment, in USD billion, May 2020 - December 2020 • Volume of B2C Payments, by Type of Payment, in millions, May 2020 - December 2020 • Share of Individuals Who Are Aware of Buy Now Pay Later Service Providers, in %, February 2021 • Awareness of Top Buy Now Pay Later Service Providers, in % of Individuals, February 2021 • Breakdown of the Most Frequently Used Online Payment Methods, incl. BNPL, in % of Online Shoppers, May 2020 • Share of Online Shopping Transactions via BNPL, by Age Group, in % of Online Shoppers, May 2020 • Number of Real-Time Payment Transactions, in billions, 2020 & 2025f • Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

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3. Asia-Pacific (Cont.) 3.2. Advanced Markets (Cont.) 3.2.4. Singapore • Breakdown of Payment Methods, in % of Consumers 18 - 25 Years Old, September 2020 • Payment Methods Used More Often Amid COVID-19, in % of Consumers, July 2020 • Breakdown of a BNPL Service Usage and Awareness, in % of Individuals, April 2021 • BNPL User Penetration Rate, and Share of BNPL Users Who Made a BNPL Mistake, by Gender, in % Respondents, October 2020 • Breakdown of the Most Common BNPL Mistakes, by Gender, in % of Respondents, October 2020 • Number of Real-Time Payment Transactions, in millions, 2020 & 2025f • Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

3.3. Emerging Markets 3.3.1. China • QR Code Payment Transaction Value, in CNY trillion, Quarter-on-Quarter Change, in %, Q1 2019 - Q4 2020 • Number of Real-Time Payment Transactions, in billions, 2020 & 2025f • Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

3.3.2. Taiwan • Payment Methods in Physical Stores, in % of Consumers, 2019 & H1 2020 • Breakdown of Payment Methods Preferred to Make a Purchase, in % of Consumers, September 2020 • Number of Real-Time Payment Transactions, in millions, 2020 & 2025f • Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

3.3.3. Indonesia • Breakdown of Payment Methods, in % of Consumers, September 2020 • Payment Methods Used in the Past Year, in % of Respondents, H1 2021 • Top Drivers of Choosing an Online Shopping Website, in % of Respondents, H1 2021

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3. Asia-Pacific (Cont.) 3.3. Emerging Markets (Cont.) 3.3.4. Thailand • Breakdown of Payment Methods, in % of Consumers, September 2020 • Payment Methods Used for Online Shopping, in % of Respondents, 2020 • Number of Real-Time Payment Transactions, in billions, 2020 & 2025f • Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

3.3.5. Vietnam • Breakdown of Payment Methods, in % of Consumers, September 2020 • Top Payment Methods Preferred When Shopping Online, in % of Consumers, 2019 & 2020 • Top Payment Methods, in % of Websites/Mobile Apps, 2019 & 2020 • Top Barriers for Shopping Online, in % of Consumers, 2020

3.3.6. Malaysia • Breakdown of Payment Methods, in % of Consumers, September 2020 • Number of Real-Time Payment Transactions, in millions, 2020 & 2025f • Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

3.3.7. Philippines • Breakdown of Payment Methods, in % of Consumers, September 2020 • Number of Real-Time Payment Transactions, in billions, 2020 & 2025f • Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

4. Europe 4.1. Regional • Online & Mobile Payment Post COVID-19, June 2021 • Overview of News About Payment Industry Players, June 2021

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4. Europe (Cont.) 4.1. Regional (Cont.) • Profile of Real-Time Payments, and Objectives of the European Commission for 2021, June 2021 • Values of real-time Payments, in USD trillion, and Share of West Europe in the World’s Total, in %, 2020 & 2025f • Share of SCT Inst in All SEPA Credit Transfer Transactions, October 2019 - September 2020 • Average Daily Transaction Value via RT1 real-time Payments, in EUR million, and Month-on-Month Change, in %, January 2020 - November 2020 • Top Payment Methods Preferred, in % of Respondents, September 2020 • Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, by 12 Selected Countries, May 2020 • Breakdown of Select Payment Methods Offered by Merchants, by “Growth” and “Non-Growth” Mindsets of Merchants, in %, September 2020 • Consumers Who Shopped Online Via Mobile Phone/Tablet At Least Once, by 12 Selected Countries, in % of Consumers, May 2020 • Payment Behaviors When Shopping In Stores Impacted by COVID-19, in % of Respondents, September 2020

4.2. Advanced Markets 4.2.1. United Kingdom • Profile of Real-Time Payments, and Objectives of the European Commission for 2021, June 2021 • Values of real-time Payments, in USD trillion, and Share of West Europe in the World’s Total, in %, 2020 & 2025f • Share of SCT Inst in All SEPA Credit Transfer Transactions, October 2019 - September 2020 • Average Daily Transaction Value via RT1 real-time Payments, in EUR million, and Month-on-Month Change, in %, January 2020 - November 2020 • Top Payment Methods Preferred, in % of Respondents, September 2020

4.2.2. Germany • Breakdown of E-Commerce Payment Methods, in % of E-Commerce Sales, 2020e • Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 • Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 • Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020 • Top Preferred Payment Methods, in % of Consumers, January 2021 11 TABLE OF CONTENTS (6 OF 13)

4. Europe (Cont.) 4.2. Advanced Markets (Cont.) 4.2.2. Germany (Cont.) • Breakdown of Preferred Payment Methods in Cross-Border B2C E-Commerce, incl., PayPal, Visa Credit Cards and MasterCard, in % of Online Retailers, Q1 2020 • Breakdown of Top Requirements to a BNPL provider, in % of Respondents, 2020 • BNPL Adoption Rate, in % of Respondents Aware of BNPL, and Breakdown of Respondents Attitude Towards BNPL Usage in the Future, by Consumer Type, in % of BNPL Users, 2020 • Breakdown of the Channels of the Last BNPL Payment, and the Potential BNPL Channel, in % of Respondents, 2020 • Top Payment Methods Offered in Online Stores, in % of Online Retail Store Owners, February 2021 • Breakdown of Payment Methods Offered in Online Stores, by Size of Enterprises, in % of Online Retail Store Owners, February 2021 • Breakdown of Payment Methods That Will be More or Less Popular Among Customers in the Upcoming Years, by Decrease and Increase in Popularity, in % of Online Retail Store Owners, February 2021 • Breakdown of Payment Methods That Will be More or Less Popular Among Customers in the Upcoming Years, by Decrease and Increase in Popularity, in % of Online Retail Store Owners, February 2021 • Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

4.2.3. France • Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 • Top Preferred Payment Methods, in % of Consumers, January 2021 • Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

4.2.4. Spain • Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 • Payment Methods Used For Online Purchases, in % of Respondents, 2019 & 2020 • Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

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4. Europe (Cont.) 4.2. Advanced Markets (Cont.) 4.2.5. Italy • Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 • Value of Mobile & Wearable Payment Transactions In Stores, in EUR billion, 2019 & 2020 • Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

4.2.6. Netherlands • Breakdown of Preferred Payment Methods, in % of Respondents, 2019 & 2020 • Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 • Share of Top 3 Payment Methods, incl. Online Purchases & Spending, in % of Total Local & Cross-Border Market Share, 2020e

4.2.7. Switzerland • Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 • Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020 • Breakdown of Payment Methods Used for Online Purchases, in % of Respondents, December 2020 • Breakdown of Reasons to Choose an Online Payment Methods, in % of Respondents, December 2020

4.2.8. Sweden • Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 • Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020 • Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020

4.2.9. Belgium • Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 • Top Payment Methods When Shopping Online, in %, H1 2020 • Share of Respondents Aged 65-74-Year Old Who Made Contactless Payment At Least Once, in %, 2020 & 2021

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4. Europe (Cont.) 4.2. Advanced Markets (Cont.) 4.2.10. Norway • Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 • Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 • Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020

4.2.11. Denmark • Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 • Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020 • Breakdown of Payment Methods Preferred for Online Shopping, in % of Consumers, May 2020

4.2.12. Finland • Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 • Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020 • Breakdown of Payment Methods Preferred for Online Shopping, in % of Consumers, May 2020

4.2.13. Austria • Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 • Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020 • Breakdown of Payment Methods Used for Online Purchases, in % of Respondents, December 2020 • Breakdown of Reasons to Choose an Online Payment Method, in % of Respondents, December 2020 • Top Internet Fraud Cases, in % of Respondents, November 2020 • Factors That Would Make Online Shoppers Feel More Secure About Online Shopping, in % of Respondents, November 2020

4.3. Emerging Markets 4.3.1. Poland • Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 14 TABLE OF CONTENTS (9 OF 13)

4. Europe (Cont.) 4.3. Emerging Markets (Cont.) 4.3.1. Poland (Cont.) • Breakdown of Payment Methods Offered, in % of Online Retailers, October 2020 • Breakdown of Fast Transfer Services Used in E-Commerce, in % of Online Shoppers Paying by Fast Transfer Services, March 2020 • Top 5 Factors Affecting Online Shoppers‘ Perception of Credibility of an E-Commerce Website When Purchasing for the First Time, incl. Payment-Related, in % of Online Shoppers, March 2020 • Digital Payment Methods Owned, in % of Internet Users, November 2020

4.3.2. Turkey • Cryptocurrency Adoption Rate, in % of Respondents, Q1 2020

4.3.3. Czech Republic • Payment Methods Used To Pay, in % of Respondents, January 2020

4.3.4. Portugal • Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2020 • Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

4.3.5. Bulgaria • Payment Methods Used In the Past Month When Making Payments Online, in % of Consumers, April 2021 • Online Payment Methods Used More Frequently Now Than Before COVID-19, in % of Consumers, April 2021

5. North America 5.1. Regional • Overview of Online & Mobile Payment Trends, June 2021 • Online & Mobile Payment News About Players, June 2021 15 TABLE OF CONTENTS (10 OF 13)

5. North America (Cont.) 5.2. United States • Value of Mobile P2P Payment Transactions, in USD billion, and Year-on-Year Change, in %, 2020e - 2024f • Mobile Payment Providers Methods Typically Used, in % of US Adults, April 2021 • Payment Methods Preferred When Shopping Online, in % of US Adults, April 2021 • Payment Methods Preferred When Purchasing In-Store, in % of US Adults, April 2021 • Breakdown of Digital Payment Platforms Primarily Used, in % of Adults, April 2021 • Payment Methods Used When Paying Online in the Past Month, in % of Consumers, March 2021 • Drivers of Changed Payment Method Habits Amid COVID-19, in % of Consumers, March 2021 • Payment Methods Small Businesses Are Familiar With, in % of Small Businesses, February 2021 • Breakdown of Contactless Card Awareness, in % of Consumers, 2019 & 2020 • Adults Who Intend to Continue Using Contactless Payment Forms After COVID-19, by Generation, in %, September 2020 • BNPL User Penetration Rate, in %, and Share of BNPL Users Who Missed at Least One Payment, in %, December 2020 • Top BNPL Applications, in % of Total BNPL Apps Downloads, Q4 2018 & 2019 & 2020 & Q1 2021 • Share of Consumers Who Would Use a Zero Interest BNPL Offered by PayPal for Online Shopping Instead of BNPL Provider Used in the Past, in %, 2020 • Top Reasons for Using BNPL Option, in % of Adults, March 2021 • BNPL User Penetration Rate, in % of Respondents, and Change in Use of BNPL Compared to March 2020, in %, by Age Groups, September 2020 • BNPL Service User Penetration Rates, by Age Groups, in % of Consumers, July 2020 & March 2021 • Breakdown of BNPL Usage, by Credit Utilization Rate at First BNPL Transaction, in %, July 2020 • Breakdown of Most Common BNPL Lenders Used, incl. Afterpay, Affirm, Bread, GreenSky, Klarna, and QuadPay, in % of BNPL Users, May 2020 • Breakdown of Most Common BNPL Lenders Used, incl. Affirm, Afterpay, FuturePay, Klarna, and PayPal, in % of Adult BNPL Users, March 2021 • Number of BNPL Users, by Service Provider, incl. Affirm, Afterpay, Bread, FuturePay, Klarna, PayPal, QuadPay, Sezzle, and Splitit, in millions, November 2021

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5. North America (Cont.) 5.2. United States (Cont.) • Breakdown of BNPL Users’ Attitude Towards BNPL Lenders Compared to Credit Card Companies, in % of Adult BNPL Users, March 2021 • Average Amount Spent via BNPL, in % of Adult BNPL Users, March 2021 • Breakdown of Reasons to Use BNPL, in % of Online Consumers, September 2020 • Breakdown of Intentions to Use BNPL Services in the next 12 Months, in % of Adults, July 2020 & March 2021 • Cryptocurrency Adoption Rate, and Global Average Cryptocurrency Adoption Rate, in % of Population, December 2020 • Product Categories Purchased/to Be Purchased with Cryptocurrency, by Owners & Nonowners, in % of Consumers, February 2021 • Consumers Who Made Purchases Using Cryptocurrency, by Product Categories & Generation, in %, February 2021 • Consumers Who Would Consider Purchasing in the Future Using Cryptocurrency, by Product Categories & Generation, in %, February 2021 • Breakdown of Digital Payment Platforms That are Trusted to Invest In or Purchase With Cryptocurrency of Choice, in % of Respondents, April 2021 • COVID-19 Precautions to Be Taken While Shopping In-Stores, in % of Consumers Who Have Been or Plan to Be Vaccinated, January 2021 • Share of Instant Payments, in % of Global Instant Payment Transaction Values, 2025f • Top Reasons for Shopping Cart Abandonment During Checkout, in % of Adults, December 2020

5.3. Canada • Payment Methods Used When Paying Online in the Past Month, in % of Consumers, March-April 2021 • Payment Methods Used More Frequently After COVID-19 than Before, in % of Consumers, March 2021 • Drivers of Changed Payment Method Habits Amid COVID-19, in % of Consumers, March 2021 • Breakdown of Payment Methods, in % of Total Transaction Volume, 2019 • Breakdown of Payment Methods, in % of Total Transaction Value, 2019 • Awareness of Digital Wallets & Mobile Payment Services, by Province, in % of Adult Internet Users, March 2020 • Share of Respondents Who Believe That Online Shopping Increases Exposure to Fraud, in %, February 2021 • Top Factors That Impact the Online Shopping Comfort Level, in % Respondents, February 2021 • Breakdown of Respondents Who Wish BNPL Option to be Offered, by Checkout Channel, and by Age Groups, in %, January 2021

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6. Latin America 6.1. Regional • Post-COVID-19 Online Payment Market, August 2021 • Top Payment Methods Used for E-Commerce Purchases Amid COVID-19, in % of Consumers, 2020 • Cash Usage Decrease, in % of Consumers, 2020

6.2. Brazil • Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020 • Top Payment Methods Used When Shopping Online via a Mobile, in % of Consumers, June 2021 • Share of Consumers Who Already Made a Purchase Online, in %, June 2021 • Top Reasons Not to Use Mobile Payment App, in % of Consumers, June 2021 • Share of Respondents Who Suffered and Did not Suffer from Financial Fraud, in %, 2019 & 2021

6.3. Mexico • Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020

6.4. Argentina • Breakdown of Top Payment Methods, in % Total Sales Made in a Year, 2019 & 2020 • Top Payment Methods Used in the Past Month, in % of Argentine IBA Adults, 2019 & 2020

6.5. Colombia • Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020 • Top Payment Methods Used in the Past Month, in % of Colombian IBA Adults, 2019 & 2020

6.6. Chile • Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020 • Top Payment Methods Used in the Past Month, in % of Chilean IBA Adults, 2019 & 2020

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6. Latin America (Cont.) 6.7. Peru • Top Payment Methods Used in the Past Month, in % of Peruvian IBA Adults, 2019 & 2020

7. Middle East 7.1. Regional • COVID-19 Impact on Online & Mobile Payment, July 2021

7.2. Middle East • Top 5 BNPL Startups, by Funding Amount, incl. Postpay, Tabby, and Tamara, December 2020

19 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global 27 – 43 5.2. United States 196 – 228 Developments 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

3.3.3. Indonesia 87 – 89 7.1. Regional 255 – 256 4.3. Emerging Markets 181 – 192 3.3.4. Thailand 90 – 93 7.2. Middle East 257 – 257 4.3.1. Poland 181 – 186 3.3.5. Vietnam 94 – 97 4.3.2. Turkey 187 – 187 3.3.6. Malaysia 98 – 100 4.3.3. Czech Republic 188 – 188 3.3.7. Philippines 101 – 103 4.3.4. Portugal 189 – 190

4.3.5. Bulgaria 191 – 192

20 Management Summary (1 of 6) Global Developments  The COVID-19 health crisis significantly transformed the payment world in 2020, resulting in changed consumer shopping behavior, innovative business procedures and new government regulations. Although digital shopping was already on an advanced level prior to the pandemic in many countries worldwide, after the onset of COVID-19, online sales increased considerably. The value of digital sales globally reached USD 876 billion in Q1 2021, which is 38% more than a year before in the same quarter. Moreover, the value is forecasted to reach USD 4.2 trillion in 2021, with the US holding nearly a quarter of it.  QR code payments gained popularity around the globe, however, their share in digital wallet transactions was projected to decline from almost 50% in 2020 to just 40% in 2025. This is mainly due to the acceleration of features such as card acceptance via NFC smartphones that will become easier to adopt.  Yet another alternative payment technology that lately began gaining traction is blockchain-based currencies. Worldwide, more and more consumers are getting involved in it, even for daily purchases. For instance, 67% of millennials worldwide became more open to cryptocurrency in 2021 compared to 2020, and 77% were interested in learning more about it.

Asia-Pacific (Regional)  Asia-Pacific online payments increased in 2020 after the onset of COVID-19 as a result of increased smartphone penetration, strong Internet access and high digital adoption rate. The region was forecasted to dominate in cashless transactions globally and reach over 1 trillion transactions in volume in 2025.

Advanced Markets  Cashless payments in Japan were used even more frequently after the COVID-19 onset in 2020, with almost 59% of the Japanese increasing their usage. Mobile payments such as QR or Touch Payments in Japan were widespread non-traditional payments, as of 2021, chosen by 52% of the surveyed Japanese. Among the common reasons for that were earning points or miles and convenience, as of November 2020. Top Payment service providers in the country were iD (24%), Suica Mobile (23%) and Rakuten Edy (22%), as of July 2021.  South Korea witnessed an increase in online shopping frequency from about 64% of respondents purchasing online in 2019 to about 70% in 2020, as per the 2020 annual survey. Among the popular payment service providers in South Korea were Naver Pay (74%), Kakao Pay (69%) and Samsung Pay (34%) in 2020.  In Australia, the popular alternative payment method is BNPL, with over 70% of individuals being aware of this service and its providers, as per the February 2021 survey. Afterpay was the market leader in awareness, which was known by 70% of Australians, followed by Zip (49%), as of February 2021.  Whereas, in Singapore, the BNPL service is not as popular among, as of April 2021, with only 13% of them using it. Real-time payments in the country were projected to gain momentum in 2025, rising from 5% in 2020 to over 11%. 21 Management Summary (2 of 6)

Asia-Pacific (Cont.) Emerging Markets  A payment method that gained momentum in China was the QR code. The QR code payments value increased by 15% from Q3 2020 to CNY 11 trillion (over EUR 1 trillion) in Q4 2020.  The top alternative payment used in the physical store in Taiwan was “electronic stored cards”, which witnessed an increase in the usage from 7.9% in 2019 to 11.7% in the first of 2020. Moreover, Taiwanese consumers commonly used “E-Ticket” when making a purchase and this payment form was mostly widespread among the youngsters aged 18-25 (12%), while the least popular among those aged 26-35 (4.7%), as of September 2020.  In Southeast Asian countries, “online wallet” was commonly used as an alternative payment method after the onset of COVID-19, however, these payments were not as widespread as conventional ones.  Indonesians mostly used “online wallet” (69%) alternatively to traditional payments in 2020. Also, another source stated that “card online” was the second choice as an alternative payment method in the country following “online wallet”.  In Thailand, other than “card online” (9%), “contactless card” (9%) was also the most common alternative payment form, as of September 2020.  “Electronic wallet” in Vietnam accelerated slightly over a year from 17% consumers preferring them in 2019 when shopping online, and to 20% of consumers using them in 2020.

Europe Regional  Debit card payments were the most common among consumers in Europe when shopping online in 2020 followed by PayPal or similar apps. The preference for cash payment dropped in 2020 with the share of those using cash decreasing by 7 p.p. from 2018, while usage of debit cards and mobile wallets grew by 4 p.p. and 3 p.p., respectively, over the same period. Even in physical stores, customers tried to use physical cards more often, while cash was chosen by a substantially lower percentage of individuals in 2020.

Advanced Markets  In the UK, contactless card payments were significantly popular in 2020, accounting for almost 90% of card payments made in stores. Debit and credit cards for online purchases were chosen by over half of the surveyed online shoppers in 2020, followed by PayPal or a similar application (44%). Moreover, alternative payments accelerated in the country as well, among them was the BNPL solution in 2020. The top BNPL service providers in the UK were PayPal Credit (19%) and Klarna (11%), as of October 2020. Another payment method that gradually accelerated in the country was cryptocurrency, despite being not as common, with 47% of British never using them, as of 2019. The significant increase in the digital currency owners was seen in individuals aged 55+, as of 2019, compared to 7% a year before.

22 Management Summary (3 of 6)

Europe (Cont.) Advanced Markets (Cont.)  In Germany, online consumers adopted contactless payments quite rapidly, with 42% of them expressing annoyance when there was not an opportunity to pay contactless in 2020. The top innovative non-contact forms of payment that emerged in Germany amid COVID-19 in 2020 were “Amazon Pay”, “biometric payment” and “P2P Payment”. The most commonly used way to make online payments in 2020 was “PayPal or a similar app” chosen by almost 50% of the surveyed consumers in 2020, followed by an “invoice” (21%) with “debit or credit card” (19%) in third place. According to another source, “invoice” (30.4%) was expected to be the leading online payment method, followed by “PayPal” (24.9%) in 2020. Among the payment forms offered by online retailers in Germany, the leading one is PayPal (81%), followed by “invoice” (67%), “credit card” (66%), “prepayment via a bank transfer” (63%) and “direct debit” (63%), as per the survey conducted between November 2020 and February 2021. Moreover, “PayPal” was the top alternative payment method offered by all types of enterprises, while “invoice” and “credit card” were mostly opted by large enterprises.  The top innovative contactless payments that emerged amid the pandemic in France were “P2P”, “biometric” payments and PayPal. Moreover, the most preferred payment forms when shopping online were “debit or credit card” (57%) followed by “PayPal or similar” (34%).  In Spain, “debit or credit card” (51%) and “PayPal or similar” (41%) were the most preferred payment methods in 2020. Half of the Spanish consumers considered it annoying not being able to use contactless payments in 2020. Moreover, the usage of a mobile and a tablet for online payments in Spain increased from 68% in 2019 to 71% in 2020.  Contactless payments in Italy gained momentum in 2020, with the value increasing from EUR 63 billion in 2019 to EUR 82 billion in 2020, although the growth rate saw a decline from 56% y-o-y in 2019 to 29% y-o-y in 2020. Amid COVID-19, the top 3 innovative non-contact payments arisen in Italy were “Amazon Pay”, “biometric payment” and “P2P payment”. In terms of payment methods, “PayPal or a similar app” was the leading one (54%), followed by “debit or credit card” (37%) in 2020. Contactless payment was preferred by Italian consumers, with over 60% of them being annoyed if no contactless option was offered.  “Debit card” transactions were substantially common in the Netherlands in 2020, with the volume reaching 4.9 billion and the value reaching EUR 125 billion in 2020. Cash payments witnessed a steady decrease over the years, especially from 2019 to 2020, falling from 2.3 billion to 1.3 billion in volume, and from EUR 32 billion to EUR 21 billion in value. Furthermore, Dutch consumers also valued contactless payments, with the share that these payments increasing every year, reaching more than 50% of the total transaction value in 2020.  In Sweden, the most popular payment method when shopping online was “invoice” in 2020, followed by “debit or credit card”, with “invoice” being common especially among consumers of 65-79 years old.  The most commonly used payment method when shopping online in Belgium was “debit or credit card” (54%) in 2020, followed by “PayPal or a similar app” (23%). However, as per another source, the most preferred payment method in the country was “Bancontact (Online)” (42%), followed by “credit card” (26%) in the first half of 2020. Moreover, for future online purchases, in 2020 Belgian customers opted mostly for “computer/laptop” (44% certainly and 37% probably) as a payment method.

23 Management Summary (4 of 6)

Europe (Cont.) Advanced Markets (Cont.)  “Debit or credit card” (37%) payments were also the most popular in Norway when purchasing online, with the second common payment form being “PayPal or a similar gateway” (21%) and the third being “invoice” (20%) in 2020. Another source stated that “card” payments were chosen by over half of surveyed online customers, making it a leading payment form in 2020, followed by VIPPS (a Norwegian mobile payment application) (21%).  Consumers in Denmark when shopping online opted mainly for “debit or credit card” (55%) payments, followed by “mobile app” (18%) in 2020.  In Finland, the top three payment methods when shopping online were “debit or credit card” (29%), “PayPal or similar” (23%) and “direct payment through a bank” (22%) in 2020. Another source found that the leading digital payment form was “online banking” (38%), followed by “card” payments (26%) in 2020.  Austrian online consumers mainly opted for three payment methods when shopping in 2020: “e-wallets” (24%), “card” and “invoice” (23%). Moreover, when shopping online, Austrian consumers claimed to feel more secure in 2020 when they would be provided with their preferred means of payment.  In Switzerland, consumers mostly opted for “card” payments (34%) in 2020, while the second choice of payment form fell on “invoice” (32%).

Emerging Markets  Online consumers in Poland commonly opted for three payment methods in 2020 when shopping: “Blik” (30%), “bank transfer” (27%) and “card” (21%). When making fast transfers during online shopping, Polish consumers preferred using “PayU” (53%), followed by “Przelewy24” (32%) in 2020. When it comes to the E-Commerce website credibility, 33% of online shoppers in Poland would be influenced by the option to pay on delivery in 2020.  The alternative payment method of cryptocurrency in Turkey had a 16% adoption rate in the first quarter of 2020.  After the onset of COVID-19, 71% of consumers in the Czech Republic continued to pay online as they did before the pandemic, and only 18% started doing that more often in 2020. The most popular payment form used was “debit card” (77%), followed by “cash” (70%) in 2020.  Almost 80% of online consumers in Portugal opted for “payments via ATM” when shopping in 2020, this method was followed by “credit/debit card” (68%) and “bank transfer” (61%). Moreover, the top three innovative contactless payments that emerged amid COVID-19 were “P2P payment”, “biometric payment” and “Amazon Pay”.  “Debit card” was the most popular payment method in Bulgaria used by 75% of consumers in the past month in 2021, followed by “digital wallet” (46%). In addition to that, a “debit card” is a payment form used by 68% of customers more often for online shopping now than before COVID-19.

24 Management Summary (5 of 6)

North America  In the US, P2P mobile payments are also gaining momentum and were projected to grow over the years from almost USD 394 billion in 2020 to reach over USD 790 billion in 2024. The y-o-y growth rate is expected to peak at nearly 37% in 2021, however, then decline to 9% in 2024.  In terms of alternative payment forms, the BNPL solution was a growing payment method in the US, with the top players providing the service including PayPal, Afterpay, Klarna, Affirm and Quadpay. Some common reasons among the surveyed consumers for using the service are for making purchases that otherwise would not fit in the budget (45%), to avoid paying credit card interest (37%), to borrow money without a credit check (25%).  In addition, US customers started adopting cryptocurrency use in their purchases, with the top categories bought using this digital currency being groceries and online gaming or gambling. Generally, over 70% of Gen Z consumers in the US made at least one purchase in various product categories using cryptocurrency, as of February 2021, followed by the Millennials (64%) and Bridge Millennials (63%). Surveyed consumers stated a preference for using crypto for purchases in the travel and leisure product category.  With regard to players in the online payment industry, several entered into partnerships to expand their services and make them more seamless. Coinbase, the online platform for purchasing, selling, transferring and storing cryptocurrency, recently allowed payments with Apple Pay and Google Pay in the US, and offered up to 4% crypto rewards for select consumers.  PayPal, as well, introduced a new service associated with cryptocurrency, allowing customers to checkout with the digital currency on various merchant websites.  The most common payment method in Canada was “credit card”, followed by “debit card”, especially after the onset of COVID-19, when credit cards were used more frequently by consumers. Cash payments witnessed a substantial decline in usage frequency as of April 2021 compared to the previous year.

Latin America  The Latin American online payment market accelerated strongly in 2020 due to the COVID-19 pandemic and the imposed restrictions by governments. These restrictions varied in severity by country, thus, the extent of the online adoption varied as well. Overall, in the region, the usage of cash declined over the year, with 62% of consumers reducing paying with cash and 40% of them decreasing the usage frequency by at least 20%.  One of the common alternative payment methods used in the region was “Payment Voucher” (8%), which was followed by PayPal (6%) in 2020.  In Brazil, consumers opted for mostly Boleto Bancário(68%) when shopping online cross-border, while also alternatively 16% of them used “digital wallets”, and also “mileage program” (4%) in 2020.  In Mexico and Colombia “mileage program” was also one of the common alternative payment forms, with 9% of consumers opting for it when shopping on international websites digitally in 2020, while “digital wallets” were less popular (5%).

25 Management Summary (6 of 6)

Latin America (Cont.)  Alternative payments in Argentina were not highly developed in 2020, compared to the traditional forms. Cryptocurrencies which were used by 0.8% of Argentinians in 2019, even saw a decline in the usage in 2020 to 0.3%. As well as in Peru, “cryptocurrencies” witnessed a drop in the usage from 1.5% in 2019 to 0.7% in 2020.  “Digital wallet” (8%) was the most common alternative payment method in Chile in 2020, followed by “mileage program” (5%).

Middle East & Africa  In the Middle East & Africa, the coronavirus pandemic is undermining the reliance of consumers on cash payments both for in-store and E- Commerce purchases. Regulators in countries including Egypt, Saudi Arabia, Kuwait, Bahrain and the UAE are encouraging the use of mobile and contactless payment means, and popular merchants also support the shift to cashless. African E-Commerce leader Jumia stopped accepting cash on delivery payments due to the coronavirus outbreak in March 2020, and Middle East’s Noon partnered with Visa to offer a discount on contactless payments.  36% of E-Commerce transactions in the UAE were paid by card, 21% by cash and 18% by a digital wallet, as reported in August 2019. Digital wallets have a strong potential for development, as 95% of Emirati consumers who made at least one online payment in the past were aware of this payment method and 81% used it.  Payment on delivery was the top payment method in Saudi Arabia in 2019, used by nearly nine in ten online shoppers.  Israel’s E-Commerce payments market was dominated by card payments (80%), followed by E-Wallet (17%), as reported in August 2019.  In South Africa, card was the leading payment method, accounting for 41% of E-Commerce transactions, as reported in August 2019. Bank transfer was the top alternative payment method with a 20% share, followed by E-Wallet with 17%.  Cash was the most used payment method with a 60% share of E-Commerce transactions in Egypt, as reported in August 2019.  The leading alternative payment methods used by online shoppers in Nigeria as of 2019 were cash (24%), bank transfer (23%) and E-Wallet (9%).

26 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

27 Online sales globally surged at 38% y-o-y from Q1 2020 to Q1 2021 reaching USD 876 billion (EUR 729 billion). Global: Online & Mobile Payment Post COVID-19, August 2021 (1 of 2)  The global payments sector was considerably transformed after the onset of the global crisis COVID-19 in 2020 due to the imposed governmental measures, changed consumer behavior and other factors. The size of the global payment market was expected to reach USD 2.12 trillion in 2020 based on the pre-COVID- 19 estimations, but after COVID-19 spread, the projections declined by 12.3% to USD 1.86 trillion, which was 7% lower than in 2019, as per McKinsey & Company in October 2020.  Online sales worldwide significantly increased in March 2021, further triggered by the pandemic, with global online sales valuing USD 876 billion in Q1 2021, 38% annual growth, as per Adobe Analytics cited by Forbes in April 2021. Moreover, the same source projects that in 2021, global E-Commerce sales will be USD 4.2 trillion, with the United States holding nearly 25% of that. Consumers all over the world are indeed now more inclined to spend online, in particular, when shopping for groceries. In the United Kingdom, Japan and United States, 39%, 27% and 24% of consumers, respectively, preferred to purchase groceries digitally and over 50% of consumers believed that they were saving money when purchasing online, as per the same source.  Although after the onset of COVID-19, the world started shifting towards cashless payments extensively. Even before the pandemic, there was a clear steady movement towards such payments. Global non-cash transaction volume is expected to surge by over 80% from 2020 to 2025 and to nearly triple by 2030, as per PwC Strategy& in May 2021. The dominant region is projected to be Asia-Pacific as this is expected to grow rapidly with cashless transaction numbers increasing by 109% by 2025 and by 75% between 2025 and 2030, followed by Africa (78%, 64%) and Europe (64%, 39%). Among the least growing was Latin America with a 52% rise from 2020 to 2025 and 48% growth between 2025 and 2030, and finally, the US and Canada are projected to see the smallest growth rate from 2020 to 2025, 43%, and only 35% from 2025 to 2030, as per the same source.  Furthermore, digital wallets accelerated significantly amid the pandemic in 2020 and were projected to enhance even more in the upcoming 5 years, namely, the number of unique digital wallet users is expected to exceed 4.4 billion worldwide in 2025, increasing from 2.6 billion in 2020, as per Juniper Research in March 2021. A 70% rise in the userbase is predicted to occur since mobile payment spread across the world and various market segments quite rapidly, which leads to wider usage of mobile wallets. Countries such as the UK and the US are holding back compared to China and India when it comes to online wallet adoption, with China and India forecasted to hold 69% of digital wallet operations in 2025. Furthermore, QR code payments also gain momentum and are crucial for mobile wallets because of their simplicity of usage and acceptance. QR code payments are forecasted to make up 40% of all digital wallet transactions in the world by 2025, as per the same source. Having said that, features such as card acceptance via NFC smartphones are estimated to become as simple to use as well.  An alternative payment form that accelerated for the last several years is cryptocurrency, as retail banking customers and investors show increasing interest in this innovation. Moreover, many shareholders, fintech companies and venture capital funds are expressing commitment to this new digital currency. Some leading banks started their own entries in the developing blockchain industry, such as JPMorgan Chase, which in 2019 introduced JPM Coin for funds transfers and rapid transaction settlements among customers, and Morgan Stanley since 2018 has presented blockchain-based investments. Over 100 banks tried instant payments using cryptocurrency. Other than that, the European Central Bank created an operational team to investigate the offer of digital euro, according to BCG in November 2020. Note: the exchange rate used in the action title is the average rate for 8 months to August 2021: USD 1 = EUR 0.83264 Source: McKinsey & Company, October 2020; Adobe Analytics cited by Forbes, April 2021; Reuters, August 2020; PR Newswire, June 2021; PR Newswire, December 2020; The National News, April 2021; PwC Strategy&, May 2021

28 While online sales boomed globally amid COVID-19 in 2020, overall fintech revenue grew slowly due to the travel industry payments delay. Global: Online & Mobile Payment Post COVID-19, August 2021 (2 of 2)  The pandemic left a substantial footprint on big players in the financial industry in 2020. Adyen, the Netherlands-based payment platform, despite COVID-19, saw a considerable rise in online sales volume in 2020, while travel industry payments suffered and reported a delayed growth in revenue as a result of the pandemic. Adyen’s main earnings (EBITDA) for the 6 months to June 30 grew between 2019 and 2020 by 11.9% - down from the growth rate of 16% in Q1 2020, as per Reuters in August 2020. Meanwhile, net revenue grew by 28% as was expected by the company. Moreover, the POS instruments usage on smartphones witnessed a decline as well, due to closed stores amid the pandemic, which was also a driver for the online sales increase. Furthermore, amid the pandemic, Adyen expands its services around the world, depicting its commitment to various nations, as in the case of the UAE. The company decided to provide its services with domestic and international businesses with an optimized payment solution to increase the authorization rates and reduce the shopping friction for customers. Some of the pioneer retailers in the UAE are set to be Foodics, Fabergé and HMSHost International, as per PR Newswire in June 2021. Also, in 2020, Adyen entered a partnership with Hungry Jack’s, an Australian fast-service restaurant, to optimize its POS terminal system and merge its offline and online sales channels, reducing costs but increasing the revenues and improving the customer experience, as per PR Newswire in December 2020.  Adyen’s huge rival, a unicorn Stripe, a digital payments company, also supported the worldwide shift towards a contactless economy, facilitating enterprises to provide consumers with their services and products based on their new day-to-day shopping habits. One of the steps Stripe made was to enter the Middle East market, in particular, in Dubai, after raising USD 600 million in capital investment, which made the company’s value reach USD 95 billion, according to The National News in April 2021. Stripe collaborated with the local Dubai-based Network International, one of the leading payment processing enterprises in the Middle East and North Africa, to offer its services in the region. With this, companies functioning online can use Stripe’s platform to accept payments. Moreover, Stripe strives to unify its present global clients with the region.  Credit card giants, such as American Express, Mastercard and Visa, believed that the global slowdown in travel was the main driver of the decline in their profits in 2020. These companies receive a fee off from each transaction, and the deficit of cross-border payments led to negative consequences. Visa’s cross-border transactions dropped by 29%, and revenue in one quarter in 2020 fell by 17% compared to the previous year. Mastercard, Visa’s rival, had its net income decline by 28% y-o-y in 2020, while the net revenue dropped by 14%. Moreover, Mastercard saw a 36% decrease in cross-border volumes, as per CNBC in October 2020.  Amid COVID-19, small businesses mostly were affected by the crisis in the world and 65% of small businesses are worried about their future, as per the Visa in March 2021. As a result of the lockdowns and limitations imposed, small enterprises are rapidly shifting towards online in 2020. For instance, more than 10 countries in Europe witnessed a 20% growth in digital sales and 8 in 10 operations are now contactless, as per the same source. With this, Visa launched an initiative to support small businesses called “Where You Shop Matters” to help small companies’ owners adapt smoothly to digitalization and provide their customers with services that will fulfill their needs. Over 2 million small businesses around Europe obtained this support after the program has launched in summer 2020. This step of Visa indicated their plans to facilitate 8 million SMEs in Europe and 50 million over the world to become online, accommodate and meet customer needs for online payments. Source: Visa, March 2021; Juniper Research, March 2021; BCG, November 2020; CNBC, October 2020

29 Global payment revenue estimates decreased after the onset of COVID- 19 to USD 1.86 trillion (EUR 1.63 trillion) in 2020, from USD 2.12 trillion (EUR 1.86 trillion) expected prior to the pandemic. Global: Value of Payments, in USD trillion, by Region, and by Pre- and Post-COVID-19 Estimates, 2010, 2014, 2018, 2019 & 2020e 3

2.12 1.90 2.00 1.86

2 Total

1.48 0.89

trillion 0.85 1.05 Asia-Pacific 0.64 North America

in USD USD in 1 0.34 0.5 0.5 0.4 Europe, Middle 0.4 East & Africa 0.36 0.37 0.28 0.31 Latin America 0.1 0.2 0.2 0 0.1 2010 2014 2018 2019 Pre- Post- COVID-19 COVID-19 2020e 2020e

Note: the exchange rate used in the action title is the average rate for 2020: USD 1 = EUR 0.876819 Source: McKinsey & Company, October 2020

30 “Mobile Payments” was the online payment method preferred by 46% of those surveyed worldwide, as of August 2020. Global: Top Online Payment Methods, in % of Respondents, August 2020

Credit Card 62%

Debit Card 53%

Internet Banking 49%

Mobile Payment (Digital Wallet, QR Code) 46%

Cash On Delivery 34%

Buy Now, Pay Later 30%

Retailer Wallet 30%

0% 35% 70% in % of Respondents

Survey: based on a survey of 8,604 respondents, conducted in August 2020 Source: Capgemeni cited by eMarketer, April 2021 31 Japan has been a cash based market, but was estimated to see a substantial drop in the cash usage from 79% in 2010 to 54% in 2020. Global: Cash Usage in Mature Markets, by Countries, incl. Japan, Singapore, South Korea and the US, in % of Total Transactions Volume, 2010 & 2020e

54% Japan 79%

39% Singapore 59% 34% South Korea 66% 2020e 28% US 51%

24% 2010 Finland 53%

23% UK 55% 14% Netherlands 52%

9% Sweden 56%

0% 30% 60% 90% in % of Total Transactions Volume

Source: McKinsey & Company, October 2020 32 Among the emerging markets globally, cash usage in China, declined sharply over 10 years; still accounts for 41% of transactions in 2020. Global: Cash Usage in Emerging Markets, by Countries, incl. Indonesia, India, Mexico and China, in % of Total Transactions Volume, 2010 & 2020e

96% Indonesia 100%

89% India 100%

Mexico 86% 97% 2020e

87% Argentina 95% 2010 74% Brazil 86%

72% Malaysia 93%

41% China 99%

0% 40% 80%

in % of Total Transactions Volume

Source: McKinsey & Company, October 2020 33 Asia-Pacific was projected to lead globally in the number of cashless transactions, rising from 494 bil. in 2020 to 1,818 bil. in 2030. Global: Number of Cashless Transactions, in billions, CAGR, in %, 2020, 2025f & 2030f

Region 2020 2025f 2030f CAGR 2020 - 2025f CAGR 2025f - 2030f

Asia-Pacific 494 billion 1,032 billion 1,818 billion 15.9% 12.0%

Europe 229 billion 375 billion 522 billion 10.4% 6.8%

North America 180 billion 258 billion 349 billion 7.5% 6.2%

Latin America 73 billion 111 billion 165 billion 8.7% 8.3%

Africa 59 billion 105 billion 172 billion 12.2% 10.4%

Note: CAGR for both periods (2020 - 2025f and 2025f - 2030f) was calculated based on the given values Source: PwC Strategy&, May 2021 34 China (87.3%) is expected to be a leading country with proximity mobile payment users worldwide in 2021. Global: Proximity Mobile Payment Users in Select Countries, in % of Smartphone Users, 2021e

China 87.3% South Korea 45.6% United States 43.2% India 40.1% Japan 34.9% Canada 29.1% Italy 25.9% Indonesia 24.6% United Kingdom 24.4% France 21.1% Russia 21.1% Brazil 20.7% Germany 19.0% Mexico 14.2%

0% 25% 50% 75% 100% in % of Smartphone Users Note: ages 14+; mobile phone users who have made at least one proximity mobile payment transaction in the past 6 months; includes point-of-sale transactions made by using mobile phones as a payment method; excludes transactions made via tablet Source: Insider Intelligence, July 2021

35 Top 3 countries globally with the highest mobile wallet adoption were Hong Kong (84.9%), China (83.9%) and Singapore (70.9%) in 2020. Global: Mobile Wallet Adoption Rate, in % of Respondents, 2020

Hong Kong 84.9%

China 83.9%

Singapore 70.9%

United States 41.1%

United Kingdom 35.0%

0% 25% 50% 75% 100% in % of Respondents

Note: data represents respondents who have mobile wallet and use it Source: GlobalData, February 2021

36 Despite being one of the leading payment methods among digital wallet transactions worldwide, the share of QR code payments are projected to decline from 47% in 2020 to 40% in 2025. Global: Share of QR Code Payments, in % of All Digital Wallet Transactions, 2020 & 2025f

2020 2025f

QR Code Payments 47% QR Code Payments 40%

Other 53% Other 60%

Source: Juniper Research, March 2021 37 Top 3 countries with the biggest number of RTP transactions globally were India (25.5 bil.), China (15.7 bil.) and S. Korea (6.0 bil.) in 2020. Global: Number of Real-Time Payment Transactions in Select Countries, incl. India, China and South Korea, in billions, 2020

India 25.48 China 15.74

South Korea 6.02

Thailand 5.24

United Kingdom 2.83

Nigeria 1.91

Japan 1.68

Brazil 1.33

United States 1.22

Mexico 0.01

0 5 10 15 20 25 30 in billions

Source: ACI Worldwide cited by eMarketer, May 2021

38 Over two-thirds of millennial consumers globally became more open to using cryptocurrency in 2021 compared to the previous year. Global: Perception of Cryptocurrency, in % of Millennial Consumers, March 2021

Interested In Learning More About Cryptocurrency 77%

Would Use Cryptocurrency If Understood It Better 75%

More Open To Using Cryptocurrency Than a Year Ago 67%

0% 25% 50% 75% 100%

in % of Millennial Consumers Note: readable sample sizes of: Gender, Generation, Affluent, Banked Survey: based on a survey of 15,569 consumers in 18 countries, more than 1000 respondents per country in Australia, India, Thailand, US, Canada, Brazil, Mexico, UAE, Egypt, Saudi Arabia, Nigeria, Kenya and South Africa and more than 500 respondents per country in Argentina, Chile, Colombia, Peru, and Dominican Republic, conducted in February 26 - March 10, 2021 Source: The Harris Poll, Mastercard Global Foresights, Insights & Analytics, May 2021 39 The user base authorizing online payments with facial recognition is expected to more than double globally from 2020 to 1.4 billion in 2025, growing at CAGR 16%. Global: Number of Users Making Online Payment With Facial Recognition, in billions, 2020 & 2025f

1.40

1 CAGR +15.9%

in billions in 0.67

0 2020 2025f

Source: Juniper Research cited by Find Biometrics, April 2021 40 The user base worldwide who will be confirming transactions with voice recognition is projected to rise by a 45% CAGR from 111 million in 2020, reaching 704 million in 2025. Global: Number of Users Who Will Be Confirming Transactions With Voice Recognition, in millions, 2020 & 2025f

800 704

600

400 CAGR

+44.7% in millions in

200 111

0 2020 2025f

Source: Juniper Research cited by The Paypers, April 2021 41 “QR Code” (51%) was the top alternative payment method consumers worldwide consider using in the next year, followed by “Biometric Checkout” (41%) and “Cryptocurrency” (40%), as of March 2021. Global: Top Payment Methods Consumers Consider Using In the Next Year, in % of Consumers, March 2021

Cash 77%

Inserting a Debit Card or Pre-Paid Card 70%

Inserting a Credit Card 68%

Tapping a Contactless Card 68%

QR Code 51%

Biometric Checkout 41%

Cryptocurrency 40%

0% 25% 50% 75% 100% in % of Consumers Note: readable sample sizes of: Gender, Generation, Affluent, Banked Survey: based on a survey of 15,569 consumers in 18 countries, more than 1000 respondents per country in Australia, India, Thailand, US, Canada, Brazil, Mexico, UAE, Egypt, Saudi Arabia, Nigeria, Kenya and South Africa and more than 500 respondents per country in Argentina, Chile, Colombia, Peru, and Dominican Republic, conducted in February 26 - March 10, 2021 Source: The Harris Poll, Mastercard Global Foresights, Insights & Analytics cited by Mastercard, May 2021 42 Payment decision-makers in B2C globally chose “Digital Wallets” (73%) as the most available payment method in 2020, while in B2B, “Bank Wire Transfers” (74%) dominated. Global: Top Payment Methods Available, by B2C and B2B, in % of Payment Decision-Makers, 2020

73% Digital Wallets 39%

65% Debit/Credit Card 49%

56% Bank Debit 65% B2C B2B

36% Bank Wire Transfers 74%

29% Cheques 59%

0% 30% 60% 90%

in % of Payment Decision-Makers

Survey: based on a survey of 700 payment decision-makers in either B2B-only businesses or B2B and B2C businesses Source: Forrester, GoCardless, May 2021 43 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

44 APAC was the leading region in cashless transactions globally prior to the pandemic and is projected to remain so through 2030. Asia-Pacific: Online & Mobile Payment Post COVID-19, August 2021  Asia-Pacific underwent significant changes in the payment industry after the COVID-19 onset in 2020. With the increased smartphone penetration, high Internet access and digital adoption rate, APAC has witnessed a considerable development in online and mobile payments since 2020. The region was forecasted to be a leader globally in cashless transactions, increasing at a CAGR of 16% from 494 billion in 2020 to 1,032 billion in 2025, and at a CAGR of 12% from 2025 to reach 1,818 billion in 2030, as per PwC Strategy& in May 2021.  Moreover, a seven market Visa survey revealed that consumers (55%) in APAC massively opted for using Tap to Phone payments, as of July 2020. The top reasons for using that feature were ease of use (52%), saving time (51%) and eliminating the need to carry cash (50%). In addition, 43% of individuals claimed that security was the main driver for adopting the tap to phone payments, according to Visa in October 2020.  China was expected to be the largest market in the region in terms of online payments in 2020, with a value of USD 2.3 trillion (EUR 1.9 trillion), as per KPMG in March 2021. China was also estimated to be the leading market in the number of proximity mobile payment users in the world in 2021, with a penetration of 87.3% of all smartphone users, as per Insider Intelligence in July 2021.  Mobile payments in the region were rapidly adopted and are projected to accelerate even further in the upcoming several years. In Japan, the number of proximity mobile payment users was 24.8 million in 2020, representing 22.5% of the population, as per eMarketer in June 2021. In China, the volume of mobile payment users reached 825.5 million in December 2020, as per China Internet Network Center in February 2021, reaching 86.5% of overall mobile Internet users. In Indonesia, proximity mobile payment users are expected to account for 24.6% of smartphone users in 2021, as per Insider Intelligence in July 2021.  Mobile payment providers in APAC varied in each country, among the top ones were iD (24.4%), Suica Mobile (23.1%) and Rakuten Edy (22.4%) in Japan, as the July 2021 study reports, Naver Pay (73.8%) and Kakao Pay (68.8%) in South Korea, as per the December 2020 survey, Alipay (55.6%) and Tenpay (38.8%) in China, as of June 2021, LINE Pay (57.9%) and Apple Pay (31.6%) in Taiwan, as of the August 2020 survey, and MoMo (97%) and ViettelPay (85%) in Vietnam, as per the September 2020 survey.  The Buy Now Pay Later solution has a huge potential in APAC. One of the market leaders, Afterpay, a BNPL service provider, reported global revenue of USD 10.1 billion in H1 2020, growing by 112% y-o-y, and saw an inflow of 23,000 new customers in the same period. In India, due to the low credit card penetration, BNPL services have good chances. LazyPay, an India-based pay later service provider, offers the BNPL option across 250 merchant websites and apps, as per GlobalData in March 2021.  Paypal, an online payments company, amid the pandemic and difficult period for small businesses, decided to make its contribution to the support of SMEs in the region. Paypal collaborated with the Singapore Centre for Social Enterprises to start several initiatives to facilitate SMEs and social enterprises with the transformation to online commerce. The initiatives include waiving processing fees for participating for a specific period, increasing the reach to Singaporean consumers who purchase with Paypal and encouraging social entrepreneurs based in Singapore to sell internationally, as per The Business Times in May 2021. Source: PwC Strategy&, May 2021; Visa, October 2020; Insider Intelligence, July 2021; eMarketer, June 2021; China Internet Network Center, February 2021; Q&Me Vietnam Market Research, September 2020; Taiwan Network Information Center, August 2020; iResearch cited by Statista, June 2021; Nasmedia, April 2021; MMD Research Laboratories, July 2021; The Business Times, May 2021; GlobalData, March 2021; KPMG, March 2021

45 China was estimated to undoubtedly lead in the online payment market in APAC in 2020, with a value of USD 2,309 billion (EUR 1,923 billion). Asia-Pacific: Value of Online Payments in Select Countries, in USD billion, 2020e

China 2,309.0

India 74.0

Australia 53.8

Indonesia 35.7

Singapore 15.4

Hong Kong 14.5

Malaysia 12.3

Vietnam 8.6

0 500 1,000 1,500 2,000 2,500

In USD billion

Note: the exchange rate used in the action title is the average rate for 8 months to August 2021: USD 1 = EUR 0.83264 Source: KPMG, March 2021

46 21% of adult travelers in Asia-Pacific and 44% in China mentioned that they used BNPL payment method in 2020. Asia Pacific & China: Share of Travelers Who Used Buy Now Pay Later Payment Method, in % of Adult Travelers, 2020

Asia-Pacific Markets Chinese Markets

Used "Buy Now Pay Used "Buy Now Pay Later" Payment Later" Payment Method Method 21% 44%

Others Others 79% 56%

Note: the survey was conducted across key markets in Europe, the Asian-Pacific (APAC) region, South America, North America, and China; his research surveyed over five thousand adult travelers who have traveled since the COVID-19 outbreak in their region Source: Amadeus, PPRO, December 2020

47 Alternative payment methods “Online Wallet” and “Card Online” were preferred by 11% of consumers in Southeast Asia, as of Sep. 2020. Southeast Asia: Breakdown of Payment Methods, in % of Consumers, September 2020

Others Mobile Contactless 8% 3% QR Code 5%

Card Swipe/Insert 7% Cash 45%

Contactless Card 10%

Online Wallet 11% Card Online 11%

Survey: based on a survey of 7,526 consumers aged 18-25 years in Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam, Myanmar, and Cambodia, conducted between August and September 2020 Source: Visa, June 2021

48 In Australia and New Zealand, Afterpay and Zip Co had the highest number of active users 3.4 million and 2.5 million, as of December 2020. Australia & New Zealand: Yearly Transaction Values, in AUD billion, Active Users, in million, and Active Merchants, by Selected BNPL Providers, December 2020

Transaction value, Active users, in million Active merchants in AUD billion

Afterpay 8.3 3.4 53,600

Zip Co 2.6 2.5 30,100

* * Openpay 0.3 0.2 2,800

Payright 0.06 0.04 1,800

Note: * includes Australia, New Zealand and the United Kingdom Source: Reserve Bank of Australia, March 2021

49 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

50 “Credit Card (Contact)” was the top payment method in Japan used at least once a month in both 2019 (69%) and in 2020 (71%). Japan: Top Payment Methods Used At Least Once a Month, in % of Respondents, 2019 & 2020

Credit Card (Contact) 70.7% 69.4%

Credit Card (Contactless) 18.1% 25.4% 10.9% Debit Card 18.8%

Transportation-Related E- 36.9% Money 40.5% 2020 E-Money Other Than Traffic- 38.1% Related 41.2% 14.6% Other Prepaid Cards 2019 21.6% Contactless IC-Type 16.7% Payment App 21.8%

Payment Apps With Code 44.5% System 36.5%

0% 20% 40% 60% 80% in % of Respondents Definition: Transportation-related E-money is electronic money issued by transportation companies (such as Suica, PASMO) in order to use it as a train or bus ticket or commuter pass Contact type of card - is when the chip communicates with external devices via a direct physical connection, for example, the card is inserted into a terminal; Contactless type of card – when the chip communicates with external devices using radio frequency identification (RFI) or radio waves, so no physical connection is necessary, for example. the card is "waved" in the proximity of the terminal. Survey: based on a survey of 5,000 respondents, conducted in September 2020 Source: Payments Japan, May 2021

51 As per another source, “Cash” (86%) was the most common choice for payments among the Japanese, followed by “Credit Card” (71%), as of July 2021. Japan: Top Payment Methods, in % of Adults, July 2021

Cash 86.0%

Credit Card 71.1%

Mobile Payments (QR or Touch Payments) 52.1%

Transportation-Related E-Money Card 24.5%

Non-Transportation E-Money Card 20.0%

Debit Card 7.4%

Others 0.3%

0% 25% 50% 75% 100% in % of Adults

Survey: based on a survey of 45,000 adults (16-69 aged), conducted between July 1st and 5th, 2021 Source: MMD Research Laboratories, July 2021

52 Only 8.8% of the surveyed adults in Japan used contactless payments via a smartphone, and further 72.7% were aware of them, July 2021. Japan: Breakdown of Awareness and Usage of Contactless Payments via a Smartphone, in % of Adults, July 2021 I consider using the payment service (have I have heard of contactless never used it) payment, but I don't know 5.5% much about the payment Currently using it solutions 8.8% 20.5%

I know the names of some of the payment services, but not what they offer 12.6%

I know what it is, but I've Used it but not using it now never used it 13.9% 20.2%

I don't know anything 18.5%

Survey: based on a survey of 45,000 adults (16-69 aged), conducted between July 1st and 5th, 2021 Source: MMD Research Laboratories, July 2021

53 Almost 3 in 5 (58.6%) of respondents in Japan increased their usage of cashless payments compared to a year prior to November 2020. Japan: Cashless Payment Usage Frequency Change Compared to a Year Before, in % of Respondents,

November 2020 Decreased No Answer Slightly Decreased 0.6% 1.1% 1.9%

Slightly Increased No Change 29.0% 37.8%

Increased 29.6%

Survey: based on a survey of 10,167 respondents, conducted between November 1st and 5th, 2020; question asked “Has the frequency of using cashless payments increased compared to a year ago? Has it decreased?“ Source: MyVoice, December 2020

54 The most common reason for using cashless payment methods in- store in Japan was to earn points/miles (66%), as of November 2020. Japan: Top Reasons for Using Cashless Payment Methods In-Store, in % of Respondents, November 2020

Earn points, miles, etc 65.9%

Convenient for small payments 43.7%

Doesn't take long to pay 40.3%

Convenient for large payments 36.3%

Member benefits, discounts, point reductions, etc 27.8%

No need to withdraw money from the bank 25.0%

Myna points*, cashless consumer refund 24.6%

Don’t want to carry small change 23.2%

Ability to check the purchase history 18.9%

Familiar with the system 13.8%

0% 40% 80% in % of Respondents Note: *MyNaPoint is designed to increase the use of My Number Cards in Japan and the use cashless payment as part of the government’s measures to stimulate consumption; once a cashless payment service (a credit card, transportation IC card such as Suica, or Pasmo, E-money such as PayPay or LINE pay etc) is linked to MyNumber Card, a user receives points back when shopping Survey: based on a survey of 10,167 respondents, conducted between November 1st and 5th, 2020; question asked “What is the reason for using cashless payment at stores?“ Source: MyVoice, December 2020

55 iD (24%), Suica Mobile (23%) & Rakuten Edy (22%) were the three most popular payment services in Japan used on a smartphone, July 2021. Japan: Breakdown of Top Payment Services via a Smartphone, in % of Adults, July 2021

American Express Touch Mastercard Contactless WAON Mobile Payment Payment JCB Contactless Payment 2.8% 0.5% 0.5% 0.4% Others PASMO Mobile 0.3% 3.4% iD 24.4% nanaco Mobile 4.3%

Visa Touch Payment* 7.0%

QUICPay 11.0%

Rakuten Edy (Japan) Suica Mobile 22.4% 23.1%

Note: *touch payments refer to the act of touching a non-contact card to the reader at the cash register, and no signature or PIN is required; for payments exceeding a certain amount, a card is needed to be inserted and PIN or sign is also needed Survey: based on a survey of 9,526 adults (16-69 aged), conducted between July 1st and 5th, 2021 Source: MMD Research Laboratories, July 2021

56 The most popular QR code payment service provider used in Japan was PayPay (20.9%), followed by Rakuten Pay (18.4%), as of July 2021. Japan: Top Used QR Code Payment Service Providers, in % of Adults, July 2021

Japan Post Pay (Yucho Other Pay) 0.1% 6.2% QUO Card Pay 6.3% PayPay 20.9%

Mercari 6.5%

FamiPay 7.8%

au Pay 9.6% Rakuten Pay 18.4%

LINE Pay d-Payment 9.7% 14.3%

Survey: based on a survey of 4,741 adults (16-69 aged), conducted between July 1st and 5th, 2021 Source: MMD Research Laboratories, July 2021

57 Real-time payment transactions in Japan were forecasted to slightly increase from 1.7 billion in 2020 to 1.8 billion in 2025. Japan: Number of Real-Time Payment Transactions, in billions, 2020 & 2025f

1.8

1.7

2 CAGR*

+1.4% in billions in

0 2020 2025f

Note: *CAGR was given by the source Source: ACI WorldWide, GlobalData, March 2021

58 The share of “Electronic Payments” in Japan was projected to increase from 25% in 2020 to 33% in 2025. Japan: Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

2020 2025f Real-Time Real-Time Electronic Payments Payments Payments 3% 3.2% 25% Electronic Payments 33.1%

Paper-Based Payments Paper-Based 63.7% Payments 72%

Source: ACI WorldWide, GlobalData, March 2021

59 The most common payment method for electronic transactions in South Korea in 2020 was “Credit Card”, valuing at KRW 579.3 billion (EUR 405.5 million), and having increased by 70% compared to 2019. South Korea: Electronic Payment Value, in KRW billion, and Volume, in millions, Y-o-Y Change, in %, by Payment Method, 2019 & 2020

2019 2020 2019-2020 Y-o-Y Change Payment Method Value, Volume, Value, Volume, Value, in % Volume, in % in KRW billion in millions in KRW billion in millions

Credit Card* 342.0 9.2 579.3 13.7 69.4 48.9

Virtual Account** 53.6 0.6 67.3 0.7 25.6 16.7

Bank Transfer 21.8 0.5 42.0 1.0 92.7 82.3

Other*** 9.9 0.9 16.9 1.4 70.7 50.5

Note: the exchange rate used in the action title is the average rate for 2020: KRW 1 = EUR 0.0007 the numbers were rounded; *debit card included; **a payment agency method in which a virtual account number is assigned to each buyer and the purchase price is received; ***a payment agency method that pays for purchases with gift certificates, etc; ranked by the 2020 value Definition: electronic payment - payment-related services provided by electronic financial business operators and financial companies in the course of electronic commerce or interpersonal transactions Source: The Bank of Korea, March 2021

60 “Payment via Points” was an alternative payment method in South Korea, which was preferred by only 3% of the surveyed when shopping online in 2020. South Korea: Breakdown of Top Payment Methods When Shopping Online, in % of Adults, December 2020

Payment via Points Others 3.2% Deposit Cash Into Account 0.4% 5.2%

Credit Card 51.5%

Easy Payment Service* 39.8%

Note: *storing credit or debit card information in a smartphone or an app created by a financial company and pay using a simple authentication method such as a fingerprint/charging money in advance in a bank account or a system created by each company, and then pay at online and offline stores Survey: based on a survey of 1,961 respondents aged 15-69, conducted between December 26 and 29, 2020 Source: Nasmedia, April 2021

61 RTP transaction volume in South Korea was forecasted to grow at a CAGR 7% from 2020 to reach 8.4 billion in 2025. South Korea: Number of Real-Time Payment Transactions, in billions, 2020 & 2025f

8.4

6.0

5 CAGR*

+6.9% in billions in

0 2020 2025f

Note: *CAGR was given by the source Source: ACI WorldWide, GlobalData, March 2021

62 “Real-Time Payments” in South Korea are projected to witness an increase from almost 11% in 2020 to reach nearly 13% in 2025. South Korea: Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

2020 2025f

Real-Time Payments Real-Time 10.7% Payments 12.8% Electronic Payments 46.8% Electronic Payments 54.4%

Paper-Based Payments 32.8%

Paper-Based Payments 42.6%

Source: ACI WorldWide, GlobalData, March 2021

63 New Payments Platform transaction value led between May 2020 and Dec 2020 in Australia, reaching USD 66.5 bil. (EUR 58.3 bil.) in Dec 2020. Australia: Value of B2C Payments, by Type of Payment, in USD billion, May 2020 - December 2020

Dec 2020 Nov 2020 Oct 2020 Sep 2020 Aug 2020 July 2020 June 2020 May 2020

New Payments USD 66.5 USD 58.5 USD 54.0 USD 51.5 USD 49.2 USD 53.5 USD 51.9 USD 41.6 Platform billion billion billion billion billion billion billion billion Transactions*

Debit Card USD 35.1 USD 35.7 USD 32.7 USD 32.9 USD 32.6 USD 33.5 USD 33.4 USD 30.4 Purchases billion billion billion billion billion billion billion billion

USD 31.0 USD 31.2 USD 30.0 USD 29.1 USD 29.5 USD 28.0 USD 27.2 Check Payments n.a. billion billion billion billion billion billion billion

Credit & Charge USD 26.6 USD 26.6 USD 24.6 USD 24.1 USD 23.9 USD 23.7 USD 23.9 USD 21.9 Card Purchases billion billion billion billion billion billion billion billion

ATM Withdrawals USD 9.0 USD 8.8 USD 8.9 USD 8.9 USD 9.2 USD 9.9 USD 8.8 USD 7.6 billion billion billion billion billion billion billion billion

Note: the exchange rate used in the action title is the average rate for 2020: USD 1 = EUR 0.876819 *New Payments Platform (NPP) is an open access infrastructure for fast payments in Australia enabling households, businesses and government agencies to make simply addressed payments, with near real-time funds availability to the recipient data on the chart is ranked by the value in December 2020 all levels and growth rates are seasonally adjusted, except for those relating to the New Payments Platform and cards on issue. The data are not adjusted for the effects of breaks in the series Source: Reserve Bank of Australia, July 2020, August 2020, September 2020, October 2020, November 2020, December 2020, January 2021, February 2021

64 As of December 2020, most of the B2C payments in Australia were made via debit cards (744.2 million). Australia: Volume of B2C Payments, by Type of Payment, in millions, May 2020 - December 2020

in millions Dec 2020 Nov 2020 Oct 2020 Sep 2020 Aug 2020 July 2020 June 2020 May 2020

Debit Card 744.2 749.6 692.2 694.7 680.3 694.8 694.8 611.8 Purchases

Credit & Charge 255.4 255.9 243.5 237.0 236.6 237.1 235.2 214.9 Card Purchases

New Payments Platform 67.9 62.1 56.2 52.8 49.4 49.3 42.5 40.9 Transactions*

ATM Withdrawals 34.7 33.3 33.5 32.7 32.7 35.1 31.5 25.3

Check Payments 3.1 3.2 3.2 3.2 3.2 n.a. 3.3 3.2

Note: *New Payments Platform (NPP) is an open access infrastructure for fast payments in Australia enabling households, businesses and government agencies to make simply addressed payments, with near real-time funds availability to the recipient data on the chart is ranked by the value in December 2020 all levels and growth rates are seasonally adjusted, except for those relating to the New Payments Platform and cards on issue. The data are not adjusted for the effects of breaks in the series Source: Reserve Bank of Australia, July 2020, August 2020, September 2020, October 2020, November 2020, December 2020, January 2021, February 2021 65 Most individuals (72.4%) in Australia are aware of Buy Now Pay Later service providers, as of February 2021. Australia: Share of Individuals Who Are Aware of Buy Now Pay Later Service Providers, in %, February 2021

Others 27.6%

Aware of BNPL Service Providers 72.4%

Survey: based on a survey of 49,239 individuals (14+), conducted in February 2021 Source: Roy Morgan, March 2021

66 Afterpay was the BNPL market leader in awareness, with 70% of Australians being aware of the service provider, as of February 2021. Australia: Awareness of Top Buy Now Pay Later Service Providers, in % of Individuals, February 2021

Afterpay 70.0%

Zip 48.6%

Latitute Pay 20.3%

Humm 11.5%

Openpay 11.3%

0% 20% 40% 60% 80% in % of Individuals

Survey: based on a survey of 49,239 individuals (14+), conducted in February 2021 Source: Roy Morgan, March 2021

67 Despite PayPal (40%) being the most popular payment method among Australian online shoppers, BNPL ranked 4th with 14%, as of May 2020. Australia: Breakdown of the Most Frequently Used Online Payment Methods, incl. BNPL, in % of Online Shoppers, May 2020 BNPL 14%

PayPal 40%

Debit Card 19%

Credit Card 27%

Survey: based on a survey of 3,444 Australian online shoppers conducted in May 2020; the respondents were selected from Power Retail’s exclusive panel and all had purchased a brand-new item online within the last six months Source: BigCommerce, July 2020

68 In Australia, the younger generation is more likely to use BNPL, as the group of 25 - 34 in May 2020 held the highest penetration rate of 18%. Australia: Share of Online Shopping Transactions via BNPL, by Age Group, in % of Online Shoppers, May 2020

< 25 16%

25 to 34 18%

35 to 44 15%

45 to 54 14%

55 to 64 9%

> 65 6%

0% 5% 10% 15% 20% 25% 30% in % of Online Shoppers

69 Real-time payments volume in Australia was forecasted to grow at a CAGR 27.3% starting 2020 to 2.1 billion in 2025. Australia: Number of Real-Time Payment Transactions, in billions, 2020 & 2025f

2.10

CAGR*

+27.3% in billions in

1 0.64

0 2020 2025f

Note: *CAGR was given by the source Source: ACI WorldWide, GlobalData, March 2021

70 “Real-Time Payments” in Australia were projected to grow from 3% in 2020 to reach slightly over 8% in 2025. Australia: Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

2020 2025f Real-Time Payments Real-Time 3.0% Payments 8.2% Paper-Based Payments 35.1%

Paper-Based Payments 23.9%

Electronic Payments Electronic 61.9% Payments 67.9%

Source: ACI WorldWide, GlobalData, March 2021

71 The most popular payment method in Singapore was “Contactless Card” (31%), followed by “Card Online” (23%), as of Sep. 2020. Singapore: Breakdown of Payment Methods, in % of Consumers 18 - 25 Years Old, September 2020

Others Online Wallet 5% QR Code 6% 2% Contactless Card 31% Mobile Contactless 9%

Card Swipe/Insert 9%

Cash 15% Card Online 23%

72 “Mobile Banking Apps” was the alternative payment chosen by 47% of Singaporean consumers, as of July 2020. Singapore: Payment Methods Used More Often Amid COVID-19, in % of Consumers, July 2020

Physical Credit & Debit Cards 58%

Mobile Banking Apps 47%

E-Wallets 34%

Cash 30%

0% 35% 70% in % of Consumers

Survey: based on a survey of over 3,500 consumers from 5 ASEAN countries (Singapore – 1,000, Indonesia, Malaysia, Thailand and Vietnam – over 600 in each), conducted in July 2020 Source: UOB, January 2021

73 Almost half (48%) of Singaporeans did not use a BNPL service before and were not considering to use it in the future, as of April 2021. Singapore: Breakdown of a BNPL Service Usage and Awareness, in % of Individuals, April 2021

I have used a BNPL service 13%

I have not used a BNPL service before & I am not considering to use it in the future 48%

I have not used a BNPL service before but I would consider using it in the future 39%

Survey: based on a survey of 1,014 individuals, conducted in April 2021; question asked “Which of the following statements describes you?“ Source: YouGov, April 2021

74 On average, 39% Singaporeans used a BNPL service, with 27% of them having made a mistake by doing so, as of October 2020. Singapore: BNPL User Penetration Rate, and Share of BNPL Users Who Made a BNPL Mistake, by Gender, in % Respondents, October 2020

45% Men 33%

Used BNPL 32% Women 21% Made a BNPL money mistake

39% Average 27%

0% 20% 40% 60% 80% 100% in % of Respondents

Survey: based on a nationally representative survey of 1,008 Singaporeans, conducted in October 2020 Source: Milieu and Finder, November 2020

75 An impulse purchase (17%) was the most common BNPL mistake made by Singaporeans, with men (20%) doing it more often than women (14%). Singapore: Breakdown of the Most Common BNPL Mistakes, by Gender, in % of Respondents, October 2020

20% Made an impulse purchase 14% 17%

19% Spent more 11% 15%

Men 13% Overstretched the budget 9% Women 11% Average 11% Paid a late fee 7% 9%

11% Bank account went into overdraft 3% 7%

0% 5% 10% 15% 20% 25% 30% in % of Respondents Survey: based on a nationally representative survey of 1,008 Singaporeans, conducted in October 2020 Source: Milieu and Finder, November 2020

76 Real-time payments in Singapore were forecasted to grow at CAGR 23% from 2020 to reach 393 million in 2025. Singapore: Number of Real-Time Payment Transactions, in millions, 2020 & 2025f

450 393 400

350

300

250 CAGR*

in millions in 200 +23.2% 138 150

100

0 2020 2025f

Note: *CAGR was given by the source Source: ACI WorldWide, GlobalData, March 2021

77 “Real-Time Payments” in Singapore were predicted to accelerate between 2020 and 2025 to reach more than 11%. Singapore: Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

2020 2025f Real-Time Payments Real-Time 4.9% Payments 11.3% Electronic Payments Electronic 48.0% Payments 54.6%

Paper-Based Payments 34.1% Paper-Based Payments 47.1%

Source: ACI WorldWide, GlobalData, March 2021

78 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

79 QR code payments value in China fell in Q1 2020 to CNY 7 tril. (EUR 903 bil.) but by the end of 2020, it recovered to CNY 11 tril. (EUR 1.4 tril.). China: QR Code Payment Transaction Value, in CNY trillion, Quarter-on-Quarter Change, in %, Q1 2019 - Q4 2020

15 100%

75% 11

10 10

10 50%

9 Quarter Change Quarter

8 8 - 7 19.4% 7 19.3% 14.8% on 25% - 11.6% 8.1% 7.8%

3.2% in CNY CNY trillion in

5 0% in % Quarter % in -25% -30.4% 0 -50% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020

QR Code Payment Transaction Value in % Quarter-on-Quarter Change

Note: the exchange rate used in the action title is the average rate for 8 months to August 2021: CNY 1 = EUR 0.12896 figures are rounded, while calculations are based on the precise values Source: iResearch cited by Yixieshi.com, January 2021

80 The number of real-time payments in China was forecasted to grow at CAGR 13.5% from 15.7 billion in 2020 to 29.7 billion in 2025. China: Number of Real-Time Payment Transactions, in billions, 2020 & 2025f

29.7 30

CAGR* 20 +13.5% 15.7

in billions in 15

0 2020 2025f

Note: *CAGR was given by the source Source: ACI WorldWide, GlobalData, March 2021

81 “Real-Time Payments” in China were predicted to increase their share of transaction volume, growing from 6.5% in 2020 to 7.7% in 2025. China: Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

2020 2025f

Real-Time Real-Time Payments Payments 6.5% Paper-Based 7.7% Paper-Based Payments Payments 17.2% 31.4%

Electronic Payments 62.0% Electronic Payments 75.1%

Source: ACI WorldWide, GlobalData, March 2021

82 Alternative payments via “Electronic Stored Cards” were made by almost 12% of Taiwanese consumers in the first half of 2020. Taiwan: Payment Methods in Physical Stores, in % of Consumers, 2019 & H1 2020

35.3% Mobile Payment 32.2%

Physical Card (Credit/Debit 33.9% Card) 41.9% H1 2020

18.7% Cash 17.2% 2019

11.7% Electronic Stored Cards 7.9%

0% 25% 50%

in % of Consumers

Survey: based on a survey of consumers: 534 in 2019 and 2,500 in H1 2020 Source: Market Intelligence & Consulting Institute (MIC), July 2020

83 “E-Ticket” was mostly preferred by the 18-25 age group (12%) as an alternative payment method in Taiwan, as of September 2020. Taiwan: Breakdown of Payment Methods Preferred to Make a Purchase, in % of Consumers, September 2020

Aged 18-25 31.0% 16.2% 40.8% 12.0% 0.0%

Aged 26-35 46.1% 27.8% 20.4% 4.7% 1.0%

Aged 36-45 42.5% 34.5% 14.3% 8.1% 0.6%

Aged 46-55 34.5% 40.4% 14.6% 10.0% 0.5%

Aged 56-65 29.7% 47.6% 11.7% 10.7% 0.3%

37.2% Overall 34.5% 18.8% 8.9% 0.6%

0% 20% 40% 60% 80% 100% in % of Consumers Mobile Payment Credit Card Cash E-Ticket Others

Survey: based on a survey of 2,500 consumers, conducted between September 1st and September 30th, 2020 question asked “Given all below payment methods, what will be your first pick if you want to make a purchase?“ Source: Market Intelligence & Consulting Institute (MIC), February 2021

84 The volume of RTP transactions in Taiwan was projected to grow at a CAGR of 8% from 326 million in 2020 to 482 million in 2025. Taiwan: Number of Real-Time Payment Transactions, in millions, 2020 & 2025f

600

482

326 CAGR*

300 +8.1% in millions in

0 2020 2025f

Note: *CAGR was given by the source Source: ACI WorldWide, GlobalData, March 2021

85 Electronic and RTP payments in Taiwan were projected to grow from 26% & 6% of transactions in 2020 to 36% & 9% in 2025, respectively. Taiwan: Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

2020 2025f Real-Time Payments Real-Time 6.0% Payments 9.3%

Paper-Based Electronic Payments Payments 54.5% 26.3% Paper-Based Electronic Payments Payments 67.7% 36.1%

Source: ACI WorldWide, GlobalData, March 2021

86 “Online Wallet” (24%) was the leading alternative payment method in Indonesia, followed by “Card Online” (12%), as of September 2020. Indonesia: Breakdown of Payment Methods, in % of Consumers, September 2020

Other 14% Cash 28% Contactless Card 5%

QR Code 7%

Card Swipe/Insert 10%

Card Online Online Wallet 12% 24%

87 According to another source, the most popular payment method used in the past year in Indonesia was a “Digital Wallet” (69%), as of H1 2021. Indonesia: Payment Methods Used in the Past Year, in % of Respondents, H1 2021

Digital Wallet 69%

Cash on Delivery 52%

Mobile Banking/Internet Banking 37%

Via Minimarket 28%

Money Transfer via ATM 23%

P2P Lending (Incl. Paylater) 20%

Credit Card 9%

0% 20% 40% 60% 80% in % of Respondents

Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 1,204 respondents, conducted during the first half of 2021; question asked: “Which of the following payment methods have you used in the last year?“ Source: Jakpat, July 2021

88 “Easier Payment Process” (56%) & “Various Payment Options Available” (53%) drove the choice of an online shopping website, as of H1 2021. Indonesia: Top Drivers of Choosing an Online Shopping Website, in % of Respondents, H1 2021

Free Shipping 66%

Cheaper 64%

Offer Many Discounts 59%

Easier Payment Process 56%

Various Payment Options Available 53%

The App is Easy to Use 52%

Various Product Options 49%

Easy Product Search 47%

Item Description is Clearer 44%

Different Delivery Services Available 42%

0% 40% 80% in % of Respondents

Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 1,054 respondents, conducted during the first half of 2021; question asked “What are your considerations in choosing an online shopping site?“ Source: Jakpat, July 2021

89 The most frequently used alternative payment methods in Thailand were “Card Online” and “Contactless Card” each chosen by 9% of consumers, as of September 2020. Thailand: Breakdown of Payment Methods, in % of Consumers, September 2020

Others 9% Mobile Contactless 6%

QR Code 6% Cash 44% Online Wallet 7%

Contactless Card 9%

Card Online Card Swipe/Insert 9% 10%

90 “Cash on Delivery” (87%) was the most commonly used payment method in Thailand when purchasing online in 2020 Thailand: Payment Methods Used for Online Shopping, in % of Respondents, 2020

Cash on Delivery 86.9%

Mobile Banking 48.6%

Bank Website (Internet Banking) 10.6%

Credit Card 4.1%

Counter Service at 7/11 Store Branch 3.3%

Bank Counter 1.9%

ATM 1.8%

Debit Card 0.7%

Electronic Wallet 0.7%

Others 0.4%

0% 25% 50% 75% 100% in % of Respondents

Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 83,880 households with respondents aged 6+ Source: National Statistical Office of Thailand, June 2021

91 Real-time payment transaction volume in Thailand was projected to surge at CAGR 32% from 2020 to reach 21 billion in 2025. Thailand: Number of Real-Time Payment Transactions, in billions, 2020 & 2025f

21.0

in billions in CAGR* 10 +32%

5.2 5

0 2020 2025f

Note: *CAGR was given by the source Source: ACI WorldWide, GlobalData, March 2021

92 RTPs in Thailand were projected to surge from 2020 to almost equal at 43.1% the leading “Paper-Based Payments” (43.9%) in 2025. Thailand: Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

2020 2025f

Electronic Electronic Payments Payments 15.2% 13.0% Paper-Based Payments 43.9%

Real-Time Payments Paper-Based 15.4% Payments 69.4% Real-Time Payments 43.1%

Source: ACI WorldWide, GlobalData, March 2021

93 “Online Wallet” was the top alternative payment method in Vietnam, chosen by 15% consumers, as of September 2020. Vietnam: Breakdown of Payment Methods, in % of Consumers, September 2020

Others 8%

Mobile Contactless 5% Card Online 7%

Cash 43% QR Code 7%

Contactless Card 7%

Card Swipe/Insert 8% Online Wallet 15%

94 Use of “Electronic wallet” as an alternative payment form in Vietnam for shopping online, increased in preference to 20% in 2020. Vietnam: Top Payment Methods Preferred When Shopping Online, in % of Consumers, 2019 & 2020

78% Cash on Delivery 86%

39% Domestic ATM Card 39%

23% Credit/Debit Card 2020 18%

2019 20% Electronic Wallet 17%

6% Scratch Card 2%

0% 20% 40% 60% 80% 100%

in % of Consumers

Survey: based on a survey of 1,000 consumers Source: Ministry of Industry and Trade Department of E-Trade and Digital Economy, July 2021

95 The leading payment method on websites/mobile apps in Vietnam was “Cash” (52%) in 2020, followed by “Online Bank Transfer” (27%). Vietnam: Top Payment Methods, in % of Websites/Mobile Apps, 2019 & 2020

Cash 52% 61%

27% Online Bank Transfer 34%

Local Payment Card 3% 8%

International Payment Cards 2% 2020 (Visa, Mastercard, etc.) 8%

4% Mobile Account/SMS 2019 7%

3% Electronic Wallet 6%

Others 5% 17%

0% 10% 20% 30% 40% 50% 60% 70% in % of Websites/Mobile Apps

Source: Ministry of Industry and Trade Department of E-Trade and Digital Economy, July 2021

96 Almost two in ten consumers in Vietnam considered “Complicated Payment” as a barrier for online shopping in 2020. Vietnam: Top Barriers for Shopping Online, in % of Consumers, 2020

Price 44%

Poor Quality Compared to Advertised 42%

Concerned About Personal Data Being Revealed 33%

Poor Shipping and Delivery 25%

Poor Customer Service 22%

Complicated Payment 19%

Unprofessional Website/App 14%

Difficulties Ordering Online 13%

Others 1%

0% 10% 20% 30% 40% 50% in % of Consumers

Survey: based on a survey of 1,000 consumers Source: Ministry of Industry and Trade Department of E-Trade and Digital Economy, July 2021

97 “Cash” (23%) was the most common payment method in Malaysia, followed by “Card Online” (16%), as of September 2020. Malaysia: Breakdown of Payment Methods, in % of Consumers, September 2020

Others 10% Cash 23%

Mobile Contactless 5%

QR Code 9%

Card Swipe/Insert 9%

Card Online 16%

Online Wallet 13%

Contactless Card 15%

98 In Malaysia, RTP transaction volume was projected to surge at a CAGR of 84% from 68.7 million in 2020 to 1,450 million in 2025. Malaysia: Number of Real-Time Payment Transactions, in millions, 2020 & 2025f

2000

1,450.0

1500

1000 CAGR*

+83.9% in millions in

500

68.7 0 2020 2025f

Note: *CAGR was given by the source Source: ACI WorldWide, GlobalData, March 2021

99 “Electronic Payments” in Malaysia were projected to rise from 15.1% in 2020 to 27.7% in 2025, as well as “RTP Payments” from 0.3% to 5.5%. Malaysia: Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

2020 2025f Real-Time Real-Time Electronic Payments Payments Payments 0.3% 5.5% 15.1% Electronic Payments 27.7%

Paper-Based Paper-Based Payments Payments 66.8% 84.6%

Source: ACI WorldWide, GlobalData, March 2021

100 “Cash” (53%) was the leading payment method among consumers in the Philippines, as of September 2020. Philippines: Breakdown of Payment Methods, in % of Consumers, September 2020 Others QR Code 4% 4% Contactless Card 5%

Card Swipe/Insert 6%

Cash 53% Card Online 13%

Online Wallet 15%

101 Real-time payments volume in the Philippines was forecasted to rise significantly at CAGR 48% from 2020 to 1.7 billion in 2025. Philippines: Number of Real-Time Payment Transactions, in billions, 2020 & 2025f

2 1.70

1 CAGR*

+48.1% in billions in

1 0.24

0 2020 2025f

Note: *CAGR was given by the source Source: ACI WorldWide, GlobalData, March 2021

102 “Electronic Payments” in the Philippines were projected to more than double from 1.5% in 2020 to 4% by 2025. Philippines: Breakdown of Payment Methods, in % of Transaction Volume, 2020 & 2025f

2020 2025f Real-Time Electronic Real-Time Electronic Payments Payments Payments Payments 0.2% 3.9% 1.8% 1.5%

Paper-Based Paper-Based Payments Payments 98.3% 94.3%

Source: ACI WorldWide, GlobalData, March 2021

103 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

104 With the acceleration of the European online payment industry, stronger customer authentication has been implemented in 2021. Europe: Online & Mobile Payment Post COVID-19, June 2021  The European payment industry is becoming progressively mature with the development of technology, Fintechs, cashless payment instruments and customers’ accelerating digital penetration. Moreover, the year 2020 had a significant impact on the payments industry prompting enterprises and customers switching to online contactless methods. Namely, the percentage of European consumers who purchased digitally via a mobile phone or a tablet increased on average by about 10 p.p. from 2019 to 2020, as per PostNord in June 2020.  When it comes to payment methods commonly preferred by consumers, debit card was the most commonly preferred and used in many countries of the region. Moreover, it witnessed an increase in the usage frequency from 27% in 2018 to 31% in 2020, as per Strategy& Payments cited by Fintechnews Switzerland in December 2020.  In addition, consumers across Europe are not inclined significantly to share their personal data, with the average percentage of consumers willing ranging between 20% and 25%, which indicates a doubting outlook. In terms of organizations that consumers are willing to share their personal data with, they tend to agree with sharing data with medical services, the government or grocery merchants more, rather than with financial services firms, as per Deloitte cited by Consultancy.eu in July 2020.  Furthermore, another major feature in the industry imposed recently is the second EU Payment Services Directive PSD2 for strong customer authentication (SCA), which implies merchants follow the requirements starting from January, 1, 2021, according to Mastercard in September 2020. While the regulation is compulsory, some merchants believe that this multiple-step authentication may appear complicating for consumers and lead to purchasing abandonment. However, the new EMV 3D-Secure protocol is believed to reduce the erroneous rejections and the risk of fraud. This new process is a good match for both web and applications, and enables retailers and card issuers to exchange more data so that the risk analysis could be executed more efficiently. In addition, with EMV 3D-Secure, the liability of fraud cases belongs to the bank not the merchant.  However, this novelty is still considered unproven and requires extra friction from online commerce participants (merchants and consumers). Although this technology may be favorable for banks since it is in line with SCA, retailers might not consider it compliant and consumer-friendly. This is due to the fact that if a customer does not provide the needed two or three step verification, knowledge, inherence or possession, a transaction will be rejected, as per CMSPI in September 2020. Based on a study, a quarter of 3DS2 operations are abandoned by a customer. In addition, 35% of 3DS2 transactions do not happen due to three main reasons, including the decline, the customers’ abandonment or technical errors. Since consumers tend to blame retailers for online delays or errors, companies have to use their own resources to reduce the possibility of those to happen, which can usually be done by larger enterprises unlike by smaller retailers. Source: PostNord, June 2020; Mastercard, September 2020; CMSPI, September 2020; Deloitte cited by Consultancy.eu, July 2020; Strategy& Payments cited by Fintechnews Switzerland, December 2020 105 European fintech players developed progressively by attracting fundraising and expanding their operations internationally in 2020. Europe: Overview of News About Payment Industry Players, June 2021  With regard to the industry players, Klarna, a private European fintech company, which is known for “buy now pay later” model, was named as the region’s highest valued fintech company with the valuation of USD 31 billion, as per Klarna in March 2021. The enterprise raised USD 1 billion in an equity funding round for international expansion and global development purposes, thus, rising the company to the top of the unicorns list, as per the same source. Moreover, Klarna is now standing among the giants as Stripe and Robinhood, as per CB Insights in April 2021.  In addition, Klarna announced about the strategic partnership with the European leader in the payment and transactional services industry, Ingenico (a part of Worldline) in order to expand Klarna’s operations even more across Europe. This collaboration implies the expansion of Klarna’s implementation in Belgium, the Netherlands and the UK, where merchants will also be able to introduce smooth checkout and a complete payment suite with Klarna, according to Klarna in February 2021.  Another Europe-based players Checkout.com, an online payments firm, has also become one of the top regional unicorns. The company’s fundraising equaled USD 450 million and raised its valuation to USD 15 billion, according to CNBC in January 2021. With the new investment, the company aims to expand internationally and capture new markets, such as in the US. A London-based fintech Checkout.com is the second most valuable company in Europe, following Klarna, as per CB Insights in April 2021.  Furthermore, this year Chechkout.com declared the setup of an office in Barcelona that is going to be headquarters for operations throughout Southern Europe markets, such as Spain, Portugal, Greece and Italy. As of now, Checkout.com supports the leading merchants including Glovo, Farfetch, Mango, Veepee. Currently, the online payments firm contains over 1,100 employees globally and 20 employees throughout Porto and Barcelona offices and aims to expand twofold in the 12 months in the Southern European region, as per Checkout.com in May 2021.  Sentenial, the Irish fintech, was acquired by the Australian payment solutions company, EML Payments Limited, for the upfront fee of EUR 70 million, as well as, a profit component of up to EUR 40 million, according to Business Wire in April 2021. Sentenial, along with its brand Nuapay, an open banking firm, function in open-banking market in the region and thus provide EML with opportunities to control scheme (Mastercard and Visa) and non-scheme (Account-to-Account, A2A) payments, including card and non-card payments too, as per the same source. Furthermore, EML aims to roll out the Sentenial’s platform and products in North America and Australia and to take a significant position in the open banking and prepaid services industry globally.  Furthermore, a leading fintech firm in Europe, Unifiedpost Group, acquired the German provider for digital document exchange Crossinx GmbH, in order to become trusted communications and payments business network, as per Business Wire in April 2021. This merge gives an opportunity for a company to offer order-to-cash and procure-to-pay solutions to small and medium sized businesses, as well as large organizations. Moreover, Unifiedpost Group has now also obtained an access to the DACH and Hungarian markets.

Source: Klarna, March 2021; Klarna, February 2021; CB Insights, April 2021; Checkout.com, May 2021; CNBC, January 2021; Business Wire, April 2021 106 In Sept. 2020, EC set an objective to transform real-time payments into the “new normal” and to unite the European digital payment landscape. EU: Profile of Real-Time Payments, and Objectives of the European Commission for 2021, June 2021

 In recent years the European Union has seen significant improvements in digital payments, mostly because of the introduction of the Single Euro Payment Area (SEPA) and the harmonization of retail payments legislation, according to the European Commission in September 2020.

 Moreover, one important component of SEPA is SCT Inst, a real-time credit transfer service, introduced in November 2017. Key attributes of SCT Inst are that services should be available 24/7/365 and usually it takes around ten seconds for the recipient’s payment service provider (PSP) to inform the payer’s PSP whether the money has been received or not and, in the case of a successful transaction, to make the funds available to the recipient, as stated by the European Payment Council in 2020.

 Based on the SCT Inst there have been built two additional infrastructures: RT1 in November 2017, and TIPS in November 2018. These pan- European real-time payment schemes slightly differ in their underlying features and are not equally distributed across members of the Union, but both serve the same purpose.

 Nevertheless, the EU payments market remains fragmented, as most domestic payment solutions based on cards or real-time payments do not work cross-border and there is practically no digital payment solution that can be utilized across Europe. With that, large global players, including worldwide payment card networks and big technology providers significantly profit by meeting the demand of European consumers to pay cross- border and in real-time.

 In September 2020, the European Commission has set an objective to transform real-time payments into the “new normal”. This must be achieved in the European Union by the end of 2021. The realization of the project will depend on significant advances on three levels: rules, end-user solutions and infrastructures. Currently, however, three years after the introduction, only 62% of all EU payment service providers offering SEPA credit transfers had joined the SEPA Credit Transfer Inst. Scheme, according to the European Commission in September 2020.

Note: SCT Inst refers to SEPA Instant Credit Transfer payment scheme Source: European Commission, September 2020; European Payment Council, 2020

107 By 2025, Europe’s share is forecasted to constitute 38% of the world’s total real-time payment transaction value. Global and West Europe: Values of real-time Payments, in USD trillion, and Share of West Europe in the World’s Total, in %, 2020 & 2025f 2025f

 Global real-time payment transactions value is forecasted to Europe share in reach USD 18 trillion in 2025, up from USD 3 trillion in 2020, global instant that is a CAGR of over 43%. payment transaction value 38%

 This will represent 17% of the total value of all B2B and consumer digital money transfer and banking payments in 2025. Others 62%

 With that, West Europe is expected to drive innovation and account for 38% of real-time payment transaction value by 2025.

Definition: transactions completed within 10 seconds Source: Juniper Research, September 2020

108 In the EU, the share of SCT Inst in all SEPA transactions reached its peak in Aug. 2020 (7.6%), compared to pre-pandemic 6% in Jan. 2020. EU: Share of SCT Inst in All SEPA Credit Transfer Transactions, October 2019 - September 2020

10%

7.6% 7.4% 8% 6.9% 6.8% 6.9% 6.0% 6.2% 6.2% 5.6% 5.7% 6.0% 6% 5.2%

2% in % of all SEPA transactions transfer credit SEPA all of % in 0% Okt 19 Nov 19 Dez 19 Jan 20 Feb 20 Mrz 20 Apr 20 Mai 20 Jun 20 Jul 20 Aug 20 Sep 20

Note: SCT Inst refers to SEPA Instant Credit Transfer payment scheme Source: ECB, September 2020

109 In November 2020, the daily value of real-time payments via RT1 in Europe surged to EUR 487 mil. from EUR 207 mil. in January 2020. EU: Average Daily Transaction Value via RT1 real-time Payments, in EUR million, and Month-on-Month Change, in %, January 2020 - November 2020 600 30%

19% 487 500 17% 20% 15% 457 417 9% 354 400 10% 5% 5% 6% 350 10% 303 7%

300 0% Month Change

263 - 248

237 -1% on 207 226 -

in EUR EUR million in 200 -10%

100 -20% Month % in

0 -30% Jan 20 Feb 20 Mrz 20 Apr 20 Mai 20 Jun 20 Jul 20 Aug 20 Sep 20 Okt 20 Nov 20

Average Daily Transaction Value via RT1 Instant Payments in % Month-on-Month Change

Source: EBA Clearing, November 2020

110 European consumers’ general preference for cash when paying for services declined from 2018 to 2020, while for electronic payments on the whole increased in 2020. Europe: Top Payment Methods Preferred, in % of Respondents, September 2020

100% 11% 14%

80% 27%

31% Mobile Wallets, Apps & 60% Others 19% Debit Cards 19% 40% Credit Cards

in % of Respondents of % in Cash 43% 20% 36%

0% 2018 2020

Survey: based on a survey of 3,500 respondents in 12 European countries, conducted in August 2020 - September 2020 and in 2018 with 10 European countries; question asked “What is your general preference for payments when you are shopping or paying for services?“ Source: Strategy& Payments cited by Fintechnews Switzerland, December 2020 111 “Debit Card or Credit Card” and “PayPal or Similar” were the leading online payment methods used in Europe, as of May 2020. Europe: Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, by 12 Selected Countries, May 2020

in % of Online UK Germany France Spain Italy Belgium Netherlands Norway Poland Denmark Finland Sweden Shoppers

Debit Card or 51% 19% 57% 51% 37% 54% 23% 37% 24% 55% 29% 28% Credit Card

PayPal or Similar 44% 48% 34% 41% 54% 23% 22% 21% 25% 16% 23% 14%

Direct Payment 1% 6% 2% 2% 1% 5% 12% 6% 27% 3% 22% 13% Through My Bank

Invoice 0% 21% 1% 1% 1% 3% 9% 20% 1% 4% 20% 30%

Cash on Delivery 1% 2% 2% 3% 3% 2% 2% 1% 12% 0% 1% 1%

Payment by 0% 0% 0% 0% 0% 0% 1% 1% 0% 1% 2% 0% Installments

Mobile App (e.g. Swish, MobilePay, 0% 2% 1% 1% 1% 11% 21% 11% 8% 18% 2% 10% Vipps)

Don’t Know 2% 2% 3% 1% 3% 1% 10% 3% 2% 3% 2% 4%

Survey: based on a survey of around 12,800 consumers, aged 15-79, with approximately 1,000 individuals per country, conducted online in May 2020; question asked: “Which of the following methods do you prefer to use when paying for a product you have bought online?” Source: PostNord, June 2020 112 As Oct. 2020, 20% of merchants in select European countries offered BNPL option, with “growth mindset” businesses more likely to do so. Europe: Breakdown of Select Payment Methods Offered by Merchants, by “Growth” and “Non-Growth” Mindsets of Merchants, in %, September 2020 55% Credit Card 61% 52% 30% Amazon 34% 28% 22% Advanced payment 27% 20% Does not have a 22% "growth mindset" Apple Pay 26% 20% Has a "growth 22% mindset" Buy now pay later 25% 20% Total 21% SEPA Direct Debit 27% 17% 20% Google 23% 18% 0% 20% 40% 60% 80% in % of Merchants Definition: Individuals with a “growth mindset” understand that abilities and intelligence can be developed, they are more likely to take on challenges, learning from the process and furthering their capabilities Survey: based on a survey of 2,500 merchants across five European countries (500 from Belgium, France, Germany, the Netherlands, and the UK), conducted in October 2020; within each of these countries, 100 were drawn from each of the following sectors: groceries/FMCG, hospitality/food delivery, home/hobbies/lifestyle, clothing and apparel and consumer electronics; across Europe, 500 merchants were surveyed in each sector; question asked: “Which payment methods do you offer across the channels used?” Source: Mollie, March 2021

113 The percentage of European consumers who shopped online at least once via a mobile phone/tablet increased on average by about 10 p.p. from 2019 to 2020. Europe: Consumers Who Shopped Online Via Mobile Phone/Tablet At Least Once, by 12 Selected Countries, in % of Consumers, May 2020

Italy 83% 76% Spain 83% 77% Sweden 79% 66% Poland 78% 62% 77% Netherlands 61% 2020 Norway 75% 66% Denmark 75% 66% 2019 72% Belgium 54% Germany 71% 58% 69% Finland 66% United Kingdom 67% 65% France 65% 60% 0% 25% 50% 75% 100% in % of Consumers Survey: based on a survey of 12,800 consumers, conducted in May 2020; question asked “How often have you used your mobile phone or tablet to shop online in the last year?“ the source does not reveal a 2019 survey details Source: PostNord, June 2020 114 Amid COVID-19 in 2020, a large part of European consumers (44%) used physical cards more frequently when shopped in stores. Europe: Payment Behaviors When Shopping In Stores Impacted by COVID-19, in % of Respondents, September 2020

Use Physical Cards More Often 44%

Use Cash More Often 15%

Use Smartphones & Mobile Wallets To Pay More Often 9% (e.g. Apple Pay)

Payment Behavior Didn't Change 33%

0% 25% 50% in % of Respondents

Note: total figure calculated as weighted average based on population numbers Survey: based on a survey of 3,500 respondents in 12 European countries, conducted in August 2020 - September 2020; question asked “How did the COVID-19 crisis impact your payment behavior when shopping in stores?“ Source: Strategy& Payments cited by Fintechnews Switzerland, December 2020 115 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

116 “Debit or Credit Card” and “PayPal or Similar” were the most popular payment methods when shopping online, preferred by 95% of consumers in the UK, as of May 2020. United Kingdom: Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 Cash on Delivery Direct Payment Through a 1% Others Bank 2% 1%

Debit or Credit Card 51%

PayPal or Similar 44%

Others 11.4%

Contactless Card Payments 88.6%

Source: Barclaycard cited by NFCW, January 2021 118 “Direct Debit” dominated among the UK consumers when paying for household bills and traditional subscriptions, as of January 2021. United Kingdom: Top Preferred Payment Methods, in % of Consumers, January 2021 (1 of 2)

Household Bills Traditional Subscriptions

Direct Debit 65% Direct Debit 58%

Debit Card 17% Debit Card 17%

Credit Card 5% Credit Card 9%

Bank Transfer 5% PayPal 4%

Bank Cash 3% 4% Transfer

PayPal 2% Cash 3%

Cheque 1% Cheque 1%

0% 20% 40% 60% 80% 0% 35% 70% in % of Consumers in % of Consumers

Survey: based on a survey of 15,424 consumers aged 18+ across the US, Canada, the UK, France, Germany, Australia and New Zealand, conducted in December 2020 - January 2021 Source: YouGov, GoCardless, April 2021 119 Both in digital subscriptions and installments, “Direct Debit” was the most preferred payment method in the UK, as of January 2021. United Kingdom: Top Preferred Payment Methods, in % of Consumers, January 2021 (2 of 2)

Digital Subscriptions Instalments

Direct Debit 53% Direct Debit 53%

Debit Card 16% Debit Card 18%

Credit Card 12% Credit Card 8%

Bank PayPal 7% 6% Transfer

Bank Transfer 3% PayPal 4%

Cash 2% Cash 3%

Cheque 1% Cheque 1%

0% 35% 70% 0% 35% 70% in % of Consumers in % of Consumers

Survey: based on a survey of 15,424 consumers aged 18+ across the US, Canada, the UK, France, Germany, Australia and New Zealand, conducted in December 2020 - January 2021 Source: YouGov, GoCardless, April 2021 120 As of October 2020, among BNPL service providers in the UK, PayPal Credit (19%) and Klarna (11%) led, however most purchase financing was still made via credit cards (74%). United Kingdom: Breakdown of Credit and BNPL Providers Used, in % of Respondents, October 2020

Credit card 74%

Store card or point-ot-sale finance 22%

PayPal Credit 19%

Klarna 11%

Clearpay 6%

V12 4%

Openpay 3%

LayBuy 3%

Splitit 2%

Other BNPL scheme 6%

0% 25% 50% 75% 100% in % of Respondents Note: does not add up to 100% due to multiple choice option Survey: based on a survey of 2,016 UK respondents, conducted in September 2020 and October 2020; question asked: “How many of these credit and / or BNPL providers have you used?” Source: Capco, November 2020

121 34% of the UK’s BNPL users would like a BNPL to be added to the credit card or current account, while 40% would not, as of October 2020. UK: Share of Consumers Who Would Like BNPL Added to the Credit Card or Current Account, in % of BNPL Users, October 2020

Not sure 26%

Yes 34%

No 40%

Survey: based on a survey of 2,016 UK respondents conducted in October 2020; question asked: “Would you like BNPL on your credit card or in your current account?” Source: Capco, November 2020

122 In Oct. 20202 survey, 71% of the UK’s BNPL users stated they would rather pay in installments, rather than in one later lump-sum transfer. UK: Share of BNPL Users who Prefer to Pay via installments, and in One Later Lump-Sum Payment, in %, October 2020

Offer full amount and pay off in one payment 29%

Spread cost over multiple instalmens 71%

Survey: based on a survey of 2,016 UK respondents conducted in October 2020; question asked: “Would you like BNPL on your credit card or in your current account?” Source: Capco, November 2020

123 In the UK, the BNPL platform Zilch topped the ranking of consumer debt with an average of GBP 238 (EUR 272), while Klarna had the least – GBP 104 (EUR 119), as of August 2020. UK: Average Customer Debt, in GBP, by BNPL Service Providers, and by Age Groups, August 2020 Age Group/ Average Debt 18-24 25-34 35-44 45-54 55+ BNPL Service Provider per Provider

Zilch 356.00 300.31 237.88 300.50 0.00 238.94

Store Card 252.86 203.20 187.84 269.45 143.94 211.46

Payl8r 282.54 137.83 275.39 350.50 0.00 209.25

Openpay 360.50 267.55 175.31 167.00 0.00 194.07

Laybuy 318.32 265.61 382.36 0.00 0.00 193.26

Zip 200.29 262.19 131.56 275.50 0.00 173.91

Clearpay 188.26 158.46 196.28 85.30 25.25 130.71

PayPal 137.92 132.55 167.13 88.16 117.63 128.68

Klarna 122.16 141.68 122.24 104.46 30.30 104.17

Average Debt per Age 246.54 207.71 208.44 182.32 35.24 Group

Note: exchange rate applied is the average for 3 months to March 2021: GBP 1 = EUR 1.143982 Survey: based on a survey of 2,016 UK respondents conducted in August 2020 Source: Money.co.uk, August 2020

124 UK Customers of Zilch’s (11 month) and Store Card’s (10 months) BNPL services took the longest to repay their debt, as of August 2020. UK: Average BNPL Time to Pay Back, in months, by BNPL Service Providers, and by Age Groups, August 2020 Age Group/ Average Time per 18-24 25-34 35-44 45-54 55+ BNPL Service Provider Service Provider

Zilch 15 28 5 8 0 11

Store Card 10 9 13 11 7 10

Zip 8 19 6 8 0 8

Payl8r 6 15 6 11 0 8

Laybuy 16 6 16 0 0 8

Clearpay 8 19 5 3 5 6

PayPal 7 7 6 5 6 6

Klarna 8 6 5 5 2 5

Openpay 3 9 8 3 0 5

Average Time per Age 9 12 8 6 2 Group

Survey: based on a survey of 2,016 UK respondents conducted in August 2020 Source: Money.co.uk, August 2020

125 The share of the oldest (55+) among UK’s cryptocurrency owners rose significantly, reaching 22% by 2020, compared to only 7% a year before. United Kingdom: Cryptocurrency Adoption Rates, by Age Groups, in % of Current and Previous Cryptocurrency Owners, December 2018 & December 2019

10% 18-24 18%

21% 25-34 39% December 2019 27% 35-44 22% December 20% 2018 45-54 15%

22% 55+ 7%

0% 20% 40% 60% 80% 100% in % of Current And Previous Cryptocurrency Owners

Survey: based on an online survey of 493 individuals who have possessed cryptocurrencies, conducted from 13 to 21 December, 2019; and a survey of 2,132 individuals by Kantar TNS Survey, conducted from 12 to 16 December 2018 Source: Financial Conduct Authority, June 2020 126 27% of British cryptocurrency holders used their digital currencies to buy goods or services in December 2019. United Kingdom: Use of Cryptocurrencies, in % of Current and Previous Cryptocurrency Owners, December 2019

Never used them 47%

Used them to purchase goods or services 27%

Exchanged them for other cryptocurrencies 25%

Used them to purchase other financial products 12%

0% 25% 50% 75% 100% in % of Current And Previous Cryptocurrency Owners

Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 2,258 Internet users,165 of whom have possessed cryptocurrencies, and online survey of additional 493 previous or current cryptocurrency holders conducted from 13 to 21 December, 2019 Source: Financial Conduct Authority, June 2020 127 Based on the surveyed online retailers, most payments in German E-Commerce market were estimated to be made via invoice (30%), followed by PayPal (25%) and “Direct Debit” (18%) in 2020. Germany: Breakdown of E-Commerce Payment Methods, in % of E-Commerce Sales, 2020e Cash On Instant Bank Transfer Amazon Pay Installment Payment Delivery Others* 1.8% 1.1% 2.0% 0.6% 3.0%

Payment At Pickup 2.9% Invoice 30.4% Bank Transfer/Prepayment 3.6%

Credit Cards 11.8%

Direct Debit 17.9%

PayPal Note: estimated E-Commerce sales for 2020: EUR 64.6 billion 24.9% *incl. Alipay, Apple Pay, Debit Cards, Giropay, Google Pay, Paydirekt, Masterpass, Postpay, Cryptocurrencies, viacash (barzahlen.de), Loyalty Cards, Gift Cards, Prepaid Cards, WeChat Pay Survey: based on a survey of 104 online retailers (Pureplayer and Omnichannel) from various industries, with net sales value of EUR 32.6 million, and 55 companies answering qualitative questions about the payment strategy in their online store Source: EHI Retail Institute, May 2021 128 “PayPal or Similar” (48%) and “Invoice” (21%) were the most preferred payment methods of online shoppers in Germany, as of May 2020. Germany: Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 Cash On Delivery Mobile App (e.g. Swish, 2% MobilePay, Vipps) Others 2% 2% Direct Payment Through a Bank 6%

PayPal or Similar 48%

Debit or Credit Card 19%

Invoice 21%

E-Wallets 41% SEPA Direct Debit 8%

Card 12%

Invoice 22%

Note: data presented is related to representatives of Germany only Survey: based on a survey of over 11,000 Internet users in Austria, Denmark, Finland, Germany, Norway, Poland, Sweden and Switzerland, conducted in June 2020 - December 2020 Source: Nets, May 2021 130 The most preferred payment form among all ages of Germans was quite similar, with, on average, 2/5 of them choosing “e-wallets” in 2020. Germany: Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020

44% 18-29 Years 18% 10%

40% 30-49 Years 20% E-Wallets 13% Invoice Card 42% 50-64 Years 25% 13%

39% 65-79 Years 28% 12%

0% 25% 50% in % of Internet Users

Note: data presented is related to representatives of Germany only Survey: based on a survey of over 11,000 Internet users in Austria, Denmark, Finland, Germany, Norway, Poland, Sweden and Switzerland, conducted in June 2020 - December 2020 Source: Nets, May 2021 131 “Bank Debit” was leading among German consumers when paying for household bills and traditional subscriptions, as of January 2021. Germany: Top Preferred Payment Methods, in % of Consumers, January 2021 (1 of 2)

Household Bills Traditional Subscriptions

Bank Debit 47% Bank Debit 42%

Bank 19% Bank Transfer 26% Transfer

PayPal 12% PayPal 8%

Debit Card 8% Debit Card 6% Cash 8% Cash 6% Credit Card 6%

Credit Card 5% Cheque 1% 0% 20% 40% 60% 0% 25% 50% in % of Consumers in % of Consumers

Survey: based on a survey of 15,424 consumers aged 18+ across the US, Canada, the UK, France, Germany, Australia and New Zealand, conducted in December 2020 - January 2021 Source: YouGov, GoCardless, April 2021 132 In Germany, “Bank Debit” and “PayPal” were the most popular payment methods in digital subscriptions, while in installment, consumers preferred mostly “bank debit”, as of January 2021. Germany: Top Preferred Payment Methods, in % of Consumers, January 2021 (2 of 2)

Digital Subscriptions Instalments

Bank Debit 29% Bank Debit 38%

Bank PayPal 27% 22% Transfer

Bank Transfer 15% PayPal 11%

Credit Card 10% Debit Card 9%

Debit Card 7% Credit Card 7%

Cash 5% Cash 7%

0% 20% 40% 0% 25% 50% in % of Consumers in % of Consumers

Survey: based on a survey of 15,424 consumers aged 18+ across the US, Canada, the UK, France, Germany, Australia and New Zealand, conducted in Dec. 2020 - Jan. 2021 Source: YouGov, GoCardless, April 2021 133 In Germany, PayPal was ranked the most preferred payment method in cross-border B2C E-Commerce in the first quarter of 2020. Germany: Breakdown of Preferred Payment Methods in Cross-Border B2C E-Commerce, incl., PayPal, Visa Credit Cards and MasterCard, in % of Online Retailers, Q1 2020

65% PayPal 19%

Very suitable 55% Fairly suitable Visa Credit Cards 23%

53% MasterCard Credit Cards 26%

0% 20% 40% 60% 80% in % of Online Retailers

Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 130 small and medium-sized online retailers from Germany, conducted in Q1 2020; question asked “How do you rate the suitability of payment methods for E-Commerce transactions with foreign countries?“ Source: Mollie, Cologne research institute ECC, July 2020 134 In 2020, in Germany, “Transparent conditions” (60%), followed by “No interest rate” (56%) were the top requirements of a BNPL provider. Germany: Breakdown of Top Requirements to a BNPL provider, in % of Respondents, 2020

Transparent conditions 60%

No interest rate 56%

Individual installment plan 52%

Individual installment amount 47%

Contract conclusion online 43%

Do not submit any documents 37%

Contact person 35%

Well-known provider 31%

0% 25% 50% 75% 100% in % of Respondents

Survey: based on a survey of 593 respondents in Germany, conducted in 2020; question asked “What are your requirements for the BNPL provider?“ Source: IFH Köln, 2020

135 In Germany, in 2020, 49% of respondents who are aware of BNPL used it already, and in the next year “smart consumers” plan to opt for it (33%). Germany: BNPL Adoption Rate, in % of Respondents Aware of BNPL, and Breakdown of Respondents Attitude Towards BNPL Usage in the Future, by Consumer Type, in % of BNPL Users, 2020 BNPL Adoption Rate, in % of Respondents Breakdown of Respondents Attitude Towards Aware of BNPL BNPL Usage in the Future

33% Have not used yet Plan to use BNLP 51% in th next 12 31% months Smart 21% consumers

Heavy-online shoppers Plan to buy more 18% using BNPL in the Consumers Already used 18% 49% future than before the pandemic 13%

0% 15% 30% 45% in % of BNPL Users

Survey: based on a survey of 1,004 – 1,050 respondents in Germany who are aware of BNPL for the question if they already used it, and 463 – 503 BNPL users for the question about the future BNPL usage, conducted in 2020 Source: IFH Köln, 2020

136 The majority (59%) of respondents in Germany in 2020 chose to use BNPL online, and 56% would prefer to do so in the future. Germany: Breakdown of the Channels of the Last BNPL Payment, and the Potential BNPL Channel, in % of Respondents, 2020

Channel of the last BNPL Channel of the potential BNPL

Both online and in- store 15%

In-store Online In-store Online 44% 56% 26% 59%

Survey: based on a survey of 495 respondents in Germany for the question of the last BNPL, and 61 respondents for the question of the potential BNPL, conducted in 2020; question asked: “Which channel did you use to complete the BNPL payment? Which channel would you use to complete a BNPL payment?“ Source: IFH Köln, 2020

137 In Germany, many online retail store owners (81%) offered “PayPal” in their stores, as of February 2021. Germany: Top Payment Methods Offered in Online Stores, in % of Online Retail Store Owners, February 2021

PayPal 81% Invoice 67% Credit Card 66% Prepayment Via Bank Transfer 63% Direct Debit 50% Instant Bank Transfer (Klarna) 41% Payment Via Installment* 21% Amazon Pay 21% Giropay 19% Cash On Delivery 18% Paydirekt 11% Apple Pay 9% Payment Via Installment Purchase (Self Processing) 7% Google Pay 3% Payment Via Installment Credit** 2% Other Payment Methods 10% 0% 25% 50% 75% 100% in % of Owners of Online Retail Stores Note: does not add up to 100% due to multiple answers possible *outsourced to a service provider; **in cooperation with a bank Survey: based on a survey of 116 owners of online retail stores, conducted in November, 16, 2020 - February, 15, 2021; question asked “Which payment methods do you offer your customers in your online store?“ Source: ibi Research, Intrum Deutschland, April 2021 138 While “PayPal” was the most popular online payment method among all types of German enterprises, “Invoice” & “Credit Card” were mostly offered by the large ones, as of February 2021. Germany: Breakdown of Payment Methods Offered in Online Stores, by Size of Enterprises, in % of Online Retail Store Owners, February 2021 All Enterprises Small Enterprises Medium Enterprises Large Enterprises PayPal 81% 84% 82% 81% Invoice 67% 46% 79% 85% Credit Card 66% 57% 71% 85% Prepayment Via Bank Transfer 63% 86% 55% 35%

Direct Debit 50% 49% 47% 65% Instant Bank Transfer (Klarna) 41% 27% 45% 50% Payment Via Installment* 21% 16% 24% 23% Amazon Pay 21% 22% 18% 15% Giropay 19% 24% 16% 27% Cash On Delivery 18% 19% 21% 23% Paydirekt 11% 11% 8% 23% Apple Pay 9% 14% 5% 8% Payment Via Installment Purchase (Self Processing) 7% 0% 0% 23% Google Pay 3% 5% 0% 0% Other Payment Methods 12% 11% 18% 4%

Note: *outsourced to a service provider Survey: based on a survey of 116 owners of online retail stores, conducted from November 16, 2020 through February 15, 2021; question asked “Which payment methods do you offer your customers in your online store?“ Source: ibi Research, Intrum Deutschland, April 2021 139 “Apple Pay” is proposed to be the most popular payment method in Germany among customers in the upcoming years, as of Feb. 2021. Germany: Breakdown of Payment Methods That Will be More or Less Popular Among Customers in the Upcoming Years, by Decrease and Increase in Popularity, in % of Online Retail Store Owners, February 2021

Apple Pay 38% 39% 18% 4%

Google Pay 29% 46% 17% 4% 3%

Amazon Pay 27% 47% 22% 2%

PayPal 25% 35% 35% 3%3%

Request To 17% 28% 38% 14% 3% Pay

WhatsApp Pay 15% 52% 17% 13% 2%

Credit Card 11% 18% 57% 11% 3%

Payment Via 9% 53% 30% 5% 3% Installments

0% 20% 40% 60% 80% 100% in % of Online Retail Stores Owners Strong Increase in Popularity Increase in Popularity Consistent Popularity Decrease in Popularity Strong Decrease in Popularity Note: does not add up to 100% due to multiple answers possible; values smaller than 2% are not labeled; ranked by strong increase in popularity Definition: Request To Pay - is an umbrella term for a number of scenarios in which a payee takes the initiative to request a specific payment from the payer. Survey: based on a survey of 29 ≤ n ≤ 110 (all retail companies) owners of online retail stores, conducted in the 16th of November, 2020 – 15th of February, 2021; question asked “Which of the payment methods below will be more or less popular with customers in the upcoming years?“ Source: ibi Research, Intrum Deutschland, April 2021 140 Cash on delivery is said to be the least popular payment method in Germany among customers in the upcoming years, as of Feb. 2021. Germany: Breakdown of Payment Methods That Will be More or Less Popular Among Customers in the Upcoming Years, by Decrease and Increase in Popularity, in % of Online Retail Store Owners, February 2021 Cash On 13% 38% 48% Delivery

Prepayment Via 3% 29% 35% 32% Bank Transfer

Paydirekt 18% 34% 23% 24%

Giropay 7% 15% 45% 24% 9%

Instant Bank 19% 49% 19% Transfer… 7% 6%

Invoice 11% 26% 44% 16% 4%

Direct Debit 11% 56% 30% 2%

0% 20% 40% 60% 80% 100% in % of Online Retail Stores Owners Strong Increase in Popularity Increase in Popularity Consistent Popularity Decrease in Popularity Strong Decrease in Popularity Note: does not add up to 100% due to multiple answers possible values smaller than 2% are not labeled; ranked by strong increase in popularity Survey: based on a survey of 88 ≤ n ≤ 102 (all retail companies) owners of online retail stores, conducted in the 16th of November, 2020 – 15th of February, 2021; question asked “Which of the payment methods below will be more or less popular with customers in the upcoming years?“ Source: ibi Research, Intrum Deutschland, April 2021 141 Amazon Pay, biometric and P2P payments were the top innovative contactless methods emerged in Germany during COVID-19, June 2020. Germany: Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

Amazon Pay 12%

Biometric Payment 10%

Peer-to-Peer Payment 8%

0% 5% 10% 15% in % of Adults

Survey: based on a survey of 1,000 respondents aged 18+ in Germany, conducted in June 22 - 30, 2020 Source: Oney, OpinionWay, October 2020 142 “Debit or Credit Card” and “PayPal or Similar” were the most preferred payment methods of online shoppers in France, as of May 2020. France: Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 Cash On Delivery Mobile App (e.g. Swish, 2% MobilePay, Vipps) Direct Payment Through a 1% Invoice Bank 1% 2%

Others 3%

Debit or Credit Card 57%

PayPal or Similar 34%

Household Bills Traditional Subscriptions

Bank Debit 52% Bank Debit 38%

Credit Card 15% Credit Card 21%

Bank Transfer 10% Cheque 9%

Bank Cheque 8% 8% Transfer

Debit Card 5% Debit Card 6%

PayPal 3% PayPal 6%

Cash 3% Cash 6%

0% 20% 40% 60% 80% 0% 35% 70% in % of Consumers in % of Consumers

Survey: based on a survey of 15,424 consumers aged 18+ across the US, Canada, the UK, France, Germany, Australia and New Zealand, conducted in December 2020 - January 2021 Source: YouGov, GoCardless, April 2021 144 Both in digital subscriptions and instalments, “bank debit” was the most preferred payment method in France, as of January 2021. France: Top Preferred Payment Methods, in % of Consumers, January 2021 (2 of 2)

Digital Subscriptions Instalments

Bank Debit 39% Bank Debit 37%

Credit Card 21% Credit Card 20%

Bank PayPal 10% 10% Transfer

Bank Transfer 8% Debit Card 7%

Debit Card 6% Cheque 7%

Cheque 5% PayPal 6%

Cash 4% Cash 5%

0% 25% 50% 0% 25% 50% in % of Consumers in % of Consumers

Survey: based on a survey of 15,424 consumers aged 18+ across the US, Canada, the UK, France, Germany, Australia and New Zealand, conducted in December 2020 - January 2021 Source: YouGov, GoCardless, April 2021 145 P2P, biometric payments and Amazon Pay were the top innovative contactless methods emerged in France during COVID-19, June 2020. France: Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

Peer-to-Peer Payment Breakdown of Payment Methods Preferred 9% When Shopping Online, in % of Consumers, May 2020 Top Preferred Payment Methods, in % of Biometric Payment Consumers, January 2021 9%

Amazon Pay 8%

0% 5% 10% in % of Adults

Survey: based on a survey of 1,000 respondents aged 18+ in France, conducted in June 22 - 30, 2020 Source: Oney, OpinionWay, October 2020 146 “Debit or Credit Card” and “PayPal or Similar” were the most preferred payment methods when shopping online in Spain, as of May 2020. Spain: Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 Mobile App Direct Payment Through a Invoice (e.g. Bank 1% Others Swish, 2% 1% MobilePay, Cash On Delivery Vipps) 1% 3%

Debit or Credit Card 51%

PayPal or Similar 41%

2019 2020 Payment Option Revolving Revolving Credit Others Payment Option Offered On the Credit Card Others Card 1% Offered On the Shopping Website Cash/Cash On 4% 1% 2% Delivery Shopping Website 1% Cash/Cash On 6% 1% Delivery 4%

Month-End Credit Card Month-End Credit 14% Card PayPal PayPal 13% 46% 49%

Debit Card 33% Debit Card 27%

Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 2,200 respondents aged 18-65, conducted in the 16th of October, 2020 - 30th of October, 2020; question asked “What payment methods did you use for your online purchases?“ the source does not reveal a 2019 survey details Source: Cetelem, October 2020 148 P2P, biometric payments and Amazon Pay were the top innovative contactless methods emerged in Spain during COVID-19, June 2020. Spain: Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

Peer-to-Peer Payment 18%

Amazon Pay 17%

Biometric Payment 16%

0% 10% 20% in % of Adults

Survey: based on a survey of 1,000 respondents aged 18+ in Spain, conducted in June 22 - 30, 2020 Source: Oney, OpinionWay, October 2020 149 “PayPal or Similar” and “Debit or Credit Card” were the most preferred payment methods when shopping online in Italy, as of May 2020. Italy: Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 Mobile App (e.g. Swish, MobilePay, Vipps) Invoice Direct Payment Through a Others 1% 1% Bank 3% 1% Cash On Delivery 3%

PayPal or Similar 54%

Debit or Credit Card 37%

3.4

1.9

2 +79% in EUR EUR billion in

0 2019 2020

Source: Osservatori.net cited by iPress Live, March 2021 151 Amazon Pay, biometric and P2P payments were the top innovative contactless methods emerged in Italy during COVID-19, June 2020. Italy: Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

Amazon Pay 14%

Biometric Payment 12%

Peer-to-Peer Payment 11%

0% 5% 10% 15% in % of Adults

Survey: based on a survey of 1,000 respondents aged 18+ in Italy, conducted in June 22 - 30, 2020 Source: Oney, OpinionWay, October 2020 152 The share of Dutch consumers who majorly preferred contactless payments increased from almost 40% in 2019 to 53% in 2020. Netherlands: Breakdown of Preferred Payment Methods, in % of Respondents, 2019 & 2020

2019 2020

PIN, Except for PIN, Except for Small Amounts Small Amouts 9% 7%

PIN Contactless 39% Cash 20% Cash 23% PIN Contactless 53%

PIN Traditional 20% PIN Traditional 29%

Note: data includes payments at point-of-sale establishments (e.g. stores, catering establishments, petrol stations, services, the market, and vending machines) and payments between Dutch citizens among themselves. Web purchases and the transfer of money for regular expenses and the like fall outside the scope of the regular survey Definition: PIN - the umbrella term for contactless payment and traditional debit card in Netherlands Survey: based on a survey of 24,498 respondents aged 12+, conducted in January 2020 - December 2020 the source does not reveal a 2019 survey details Source: DeNederlandscheBank, Ipsos, GfK, April 2021 153 “Debit or Credit Card” (23%), “PayPal or Similar” (22%) & “Mobile App” (21%) were the most preferred payment methods when shopping online in the Netherlands, as of May 2020. Netherlands: Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020 Cash On Delivery Payments by Installments 2% 1% Invoice 9% Debit or Credit Card 23%

Others 10%

Direct Payment Through a Bank 12%

PayPal or Similar 22% Mobile App (e.g. Swish, MobilePay, Vipps) 21%

Online Purchases Online Spending

PayPal Authorization 4% Credit Card 11% 9%

Credit Card 13%

iDeal iDeal 58% 69%

Definition: iDEAL is an E-Commerce payment system used in the Netherlands, based on online banking. Source: Thuiswinkel, March 2021 155 The most preferred payment form in Switzerland was “Card” (34%) in 2020, followed by “Invoice” (32%). Switzerland: Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020

Payment In Advance Customer Card With Don't Know 2% Payment Function* 1% 1% Installment Payments 3% Card Mobile-Payment Wallets 34% 3%

Debit Card 7%

E-Wallets 13%

Invoice 32%

Note: *Breuninger Card, IKEA Family etc. Survey: based on a survey of over 11,000 Internet users in Austria, Denmark, Finland, Germany, Norway, Poland, Sweden and Switzerland, conducted in June 2020 - December 2020; current chart is related to representatives of Switzerland only Source: Nets, May 2021 156 In Switzerland, “Card” was preferred as a payment form in 2020, while “E-Wallets” fell behind. Switzerland: Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020

32% 18-29 Years 32% 10%

31% 30-49 Years 34% Card 14% Invoice E-Wallets 35% 50-64 Years 29% 16%

43% 65-79 Years 28% 11%

0% 25% 50% in % of Internet Users

157 Invoice (45%) was the most used payment method for online shopping in a Dec. 2020 survey in Switzerland, while 9% opted for installments. Switzerland: Breakdown of Payment Methods Used for Online Purchases, in % of Respondents, December 2020 Invoice 45%

Credit cards 30%

E-Wallets 29%

Debit card 19%

SEPA direc debit transfer 14%

Mobile payment wallet 12%

Payment in advance 9%

Installments 9%

Payment on delivery 4%

Customer card with payment 1% option 0% 20% 40% 60% in % of Respondents

Survey: based on a survey of 100 interviews per week, 3,965 in total; conducted between September 2020 and December 2020 in Austria, Germany and Switzerland; question asked “Which of the following payment methods did you use in the last 28 days for online purchases?“ Source: Nets, March 2021

158 In Switzerland, installment payments were mainly preferred due to their nature of splitting payments (38%), but also because they are easy (35%) and fast (31%), as of December 2020. Switzerland: Breakdown of Reasons to Choose an Online Payment Methods, in % of Respondents, December 2020

Customer Payment Mobile Credit Debit Payment Online- card with Invoice Installments on E-Wallets payment card card in advance transfer payment delivery wallets option

Fast 50% 52% 9% 31% 56% 50% 52% 51% 39% 56%

Easy 53% 53% 33% 35% 13% 0% 42% 61% 38% 46%

Safe 35% 26% 48% 25% 48% 50% 31% 56% 24% 33%

Cheap 4% 7% 3% 18% 7% 0% 3% 12% 24% 8%

Habit 28% 29% 28% 20% 24% 0% 23% 12% 41% 16%

Bonuses 26% 7% 2% 0% 6% 0% 6% 3% 24% 13%

I would like to receive an 7% 3% 33% 27% 4% 0% 7% 2% 0% 0% invoice later

I would like to pay in 5% 1% 9% 38% 0% 26% 0% 2% 0% 3% installments

Survey: based on a survey of 100 interviews per week, 3,965 in total; conducted between September 2020 and December 2020 in Austria, Germany and Switzerland; question asked “Why do you prefer these payment methods? Please choose up to three options per payment methods.“ Source: Nets, March 2021

159 As per another source, “Invoice” (33%) payment method was the most popular among Swedish Internet users in 2020, followed by “Card” (22%) and “Swish” (20%). Sweden: Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020

Apple Pay Don't Know 1% PayPal 2% 6% Invoice 33% Online Bank 16%

Swish 20%

Card 22%

Definition: Swish is a mobile payment system in Sweden Survey: based on a survey of over 11,000 Internet users in Austria, Denmark, Finland, Germany, Norway, Poland, Sweden and Switzerland, conducted in June 2020 - December 2020; current chart is related to representatives of Sweden only Source: Nets, May 2021

160 In Sweden, “Invoice” payment method was generally the most preferred one in 2020, especially among the 65-79 years olds. Sweden: Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020

30% 18-29 Years 27% 23%

28% 30-49 Years 23% 21% Invoice Card 37% Swish 50-64 Years 14% 22%

42% 65-79 Years 12% 21%

0% 10% 20% 30% 40% 50%

in % of Internet Users

161 “Invoice” (30%) and “Debit or Credit Card” (28%) were the most preferred payment forms when shopping online in Sweden, May 2020. Sweden: Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020

Others Cash On Delivery 4% 1% Mobile App (e.g. Swish, MobilePay, Vipps) 10% Invoice 30%

Direct Payment Through a Bank 13%

PayPal or Similar 14% Debit or Credit Card 28%

Invoice Cash On Delivery Others 3% 2% 1% Direct Payment Through a Bank 5%

Mobile App (e.g. Swish, MobilePay, Vipps) 11%

Debit or Credit Card 54%

PayPal or Similar 23%

Bancontact Gift Cards/Loyalty Points Cash (Delivery/Pickup) (Delivery/Pickup) 2% Direct Debit 1% Other 3% 2% 1% Bank Transfer (Bank Office) 1% Bancontact (Online) 42% Bank Transfer (Online) 6%

PayPal 16%

Credit Card 26% Note: data presented for the period January 2020 - June 2020 Definition: Bancontact is an online payment method in Belgium, with over 15 million cards in circulation; Bancontact cards and a mobile app linked to a Belgian bank account can be used to make an online payment. Source: BeCommerce cited by Internetkassa.nu, February 2021 164 The share of 65-74 year-olds in Belgium who made at least one contactless payment in a year jumped from 36% in 2020 to 76% in 2021. Belgium: Share of Respondents Aged 65-74-Year Old Who Made Contactless Payment At Least Once, in %, 2020 & 2021

2020 2021

Made Contactless Others Payment At Least 24% Once 36%

Others 64% Made Contactless Payment At Least Once 76%

Survey: based on a survey of 1,181 and 1,176 respondents, conducted in March 2020 and March 2021, respectively Source: Bancontact Payconiq Company, Febelfin, Mastercard, Visa, Worldline, the VUB (The Vrije Universiteit Brussel) cited by The Brussels Times, May 2021

165 “Debit or Credit Card” (37%), “PayPal or Similar” (21%) and “Invoice” (20%) were the top preferred payment methods for online shopping in Norway, as of May 2020. Norway: Breakdown of Payment Methods Preferred When Shopping Online, in % of Consumers, May 2020

Cash On Delivery Direct Payment Through a Others 1% Payment by Installments Bank 3% 1% 6%

Mobile App (e.g. Swish, MobilePay, Vipps) Debit or Credit Card 11% 37%

Invoice 20%

PayPal or Similar 21%

Invoice 12% Card 52%

VIPPS 21%

Definition: VIPPS is a Norwegian mobile payment application Survey: based on a survey of over 11,000 Internet users in Austria, Denmark, Finland, Germany, Norway, Poland, Sweden and Switzerland, conducted in June 2020 - December 2020; current chart is related to representatives of Norway only Source: Nets, May 2021 167 In Norway, a younger generation opted for “VIPPS” as a payment form more than older one, while the latter preferred mainly “Card” in 2020. Norway: Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020

39% 18-29 Years 35% 11%

46% 30-49 Years 25% Card 12% VIPPS Invoice 59% 50-64 Years 12% 16%

74% 65-79 Years 6% 11%

0% 30% 60% 90% in % of Internet Users

168 As per another source, “Card” (62%) was the most preferred form of payment in Denmark in 2020, followed by “MobilePay” (25%). Denmark: Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 Invoice Apple Pay Don't Know Online Banking 2% 1% 2% 1% PayPal 6%

MobilePay Card 25% 62%

169 The most popular mean of payment in Denmark chosen among all age groups of Internet users was “Card” in 2020, followed by “MobilePay”. Denmark: Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020

59% 18-29 Years 29% 5%

55% 30-49 Years 29% 10% Card MobilePay 64% PayPal 50-64 Years 24% 5%

80% 65-79 Years 12% 2%

0% 20% 40% 60% 80% 100%

in % of Internet Users

170 “Debit or Credit Card” (55%) was the most preferred payment method of online shoppers in Denmark, followed by “Mobile App” (18%) and “PayPal or Similar (16%), as of May 2020. Denmark: Breakdown of Payment Methods Preferred for Online Shopping, in % of Consumers, May 2020

Payment by Installments Direct Payment Through a Others 1% Bank 3% 3%

Invoice 4%

PayPal or Similar 16%

Debit or Credit Card 55%

Mobile App (e.g. Swish, MobilePay, Vipps) 18%

Definition: MobilePay is an application that enables payments via a smartphone and money transfers. Survey: based on a survey of around 12,800 consumers, aged 15-79, with approximately 1,000 individuals per country, conducted online in May 2020; question asked: “Which of the following methods do you prefer to use when paying for a product you have bought online?” Source: PostNord, June 2020 171 The most used form of payment was “Online Banking” (38%) in Finland, followed by “Card” (26%) in 2020. Finland: Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 Apple Pay Google Pay Cash On Delivery Nordea Pay 1% 1% 1% Don't Know 1% 2% Installments 2% Online Banking MobilePay 38% 5%

PayPal 10%

Invoice 13%

Card 26%

172 In 2020, “Online Banking” was the leading payment method among all age groups in Finland, while “Invoice” was the least popular. Finland: Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020

34% 18-29 Years 21% 15%

37% 30-49 Years 24% 13% Online Banking Card 41% Invoice 50-64 Years 29% 13%

42% 65-79 Years 31% 12%

0% 25% 50%

in % of Internet Users

173 “Debit or Credit Card” (29%), “PayPal or Similar” (23%), “Direct Payment Through a Bank” (22%) and “Invoice” (20%) were top 4 preferred payment methods for shopping online in Finland, May 2020. Finland: Breakdown of Payment Methods Preferred for Online Shopping, in % of Consumers, May 2020

Mobile App (e.g. Swish, Others Cash On Delivery MobilePay, Vipps) 2% 2% 1% Payment by Installments 2%

Debit or Credit Card 29% Invoice 20%

Direct Payment Through a Bank 22% PayPal or Similar 23%

Payment In Cash On Delivery Don't Know 1% Installment Payments Advance 1% 1% 1% Mobile Payment Wallets 2% E-Wallets SEPA Direct Debit Debit Card 24% 4% 7%

Online Transfer 13%

Card 23%

Invoice 23%

175 In Austria, “Card” was top preferred payment method among the 30-49 and 65-79-year olds, while “E-Wallets” were the most popular payment form among the 18-29 and 50-64-year olds in 2020. Austria: Top Preferred Payment Methods, by Age Groups, in % of Internet Users, December 2020

14% 18-29 Years 18% 23%

27% 30-49 Years 24% 21% Card Invoice 21% E-Wallets 50-64 Years 25% 30%

34% 65-79 Years 22% 27%

0% 10% 20% 30% 40%

in % of Internet Users

Survey: based on a survey of over 11,000 Internet users in Austria, Denmark, Finland, Germany, Norway, Poland, Sweden and Switzerland, conducted in June 2020 - December 2020; current chart is related to representatives of Austria only Source: Nets, May 2021 176 E-Wallets (49%), credit cards (38%) and invoice (35%) were the most used payment methods in online shopping in Austria, as of Dec. 2020. Austria: Breakdown of Payment Methods Used for Online Purchases, in % of Respondents, December 2020 E-Wallets 49%

Credit cards 38%

Invoice 35%

SEPA direc debit transfer 35%

Online transfer 22%

Debit card 20%

Mobile payment wallet 8%

Payment in advance 7%

Installments 4%

Payment on delivery 3% Customer card with payment 2% option 0% 20% 40% 60% in % of Respondents

177 In Austria, 48% of respondents to a December 2020 survey indicated a simple preference for installment payments and that his method became a habit (40%). Austria: Breakdown of Reasons to Choose an Online Payment Method, in % of Respondents, December 2020

SEPA- Customer Payment Payment Mobile Credit Debit direct Online- card with Invoice Installments in on E-Wallets payment card card debit transfer payment advance delivery wallets transfer option

Fast 45% 45% 29% 7% 16% 31% 26% 60% 60% 41% 66%

Easy 57% 56% 55% 30% 29% 11% 58% 58% 66% 0% 50%

Safe 40% 30% 32% 55% 8% 11% 49% 40% 66% 40% 41%

Cheap 3% 2% 5% 2% 24% 9% 15% 6% 5% 19% 6%

Habit 25% 32% 32% 18% 40% 31% 22% 28% 12% 20% 3%

Bonuses 8% 5% 4% 3% 8% 21% 14% 0% 1% 0% 3%

I would like to receive an 16% 6% 13% 38% 23% 0% 13% 3% 2% 0% 0% invoice later

I would like to pay in 1% 1% 2% 3% 48% 19% 0% 1% 1% 0% 0% installments

178 The most common scam experienced by Austrians was when goods were paid for but not delivered (33.2%), as of November 2020. Austria: Top Internet Fraud Cases, in % of Respondents, November 2020

No Goods Delivery Despite the Payment 33.2%

Subscription Trap 23.1%

False Payment Request 15.6%

Malware Installment 8.1%

Fake Goods Receipt 7.7%

0% 10% 20% 30% 40% in % of Respondents

Survey: based on a survey of 1,000 respondents of 14-65 years old, conducted in November 2020 Source: E-Commerce Gütezeichen, MarketAgent, March 2021

179 51% of Austrians would feel more secure about online shopping if they were provided with their preferred payment form, Nov. 2020. Austria: Factors That Would Make Online Shoppers Feel More Secure About Online Shopping, in % of Respondents, November 2020

Returns/Cancellations Are Possible 57.2%

Provide Preferred Mean of Payment 50.8%

Positive Customer Ratings 33.9%

Shops Are Certified With a Seal of Approval 32.8%

Online Shops Are Based In Austria 30.9%

0% 35% 70% in % of Respondents

Survey: based on a survey of 1,000 respondents of 14-65 years old, conducted in November 2020 Source: E-Commerce Gütezeichen, MarketAgent, March 2021

180 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

181 The most preferred payment form in Poland was “Blik” (30%) in 2020, followed by “Bank Transfer” (27%) and “Card” (21%). Poland: Breakdown of Preferred Payment Methods, in % of Internet Users, December 2020 Deferred Payments Google Pay Don't Know 1% 3% Apple Pay 1% Cash On Delivery 2% 6% Blik 30%

Traditionel Bank Transfer 9%

Card 21%

Bank Transfer 27% Definition: Blik is a mobile payment system in Poland that enables mobile phone users to make payments online and in store, as well as withdraw cash at ATMs Survey: based on a survey of over 11,000 Internet users in Austria, Denmark, Finland, Germany, Norway, Poland, Sweden and Switzerland, conducted in June 2020 - December 2020; current chart is related to representatives of Poland only Source: Nets, May 2021

182 Card payments in 2020 were offered by all top E-Commerce websites in Poland, followed by pay-by-link (96%), and Blik (95%). Poland: Breakdown of Payment Methods Offered, in % of Online Retailers, October 2020

Credit/debit card 100%

Pay-by-link 96%

Blik 95%

Payment on delivery 83%

GPay/Apple Pay 68%

Traditional bank transfer 62%

Masterpass/Visa Checkout 55%

Payment in installments 44%

Deferred payment 30%

0% 25% 50% 75% 100% in % of Online Retailers Note: based on a study of 100 most visited E-Shops in Poland in 2020 Definition: Blik is a Polish local payment method which was created by the Polish Payment Standard that enables mobile phone users to pay in stores, withdraw cash at ATMs and make online payments; pay-by-link is direct online bank transfers powered through consumers’ own bank environment and is often referred to as 'Przelewy24' or 'P24’; Source: KoszykRoku.pl and Twisto, October 2020

183 Among the fast transfer services used by online shoppers in Poland, “PayU” (53%) and “Przelewy24” (32%) were leading, as of March 2020. Poland: Breakdown of Fast Transfer Services Used in E-Commerce, in % of Online Shoppers Paying by Fast Transfer Services, March 2020 Other None of the Above/Hard to zPay 2% 1% Say Bluemedia 3% 1% ePrzelewy 3% Dotpay 6%

PayU 53%

Przelewy24 32%

Note: does not add up to 100% due to multiple answers possible Definition: PayU – a payment gateway for accepting online & offline payments; Przelewy24 – is an online payment system used for online payments, wire transfer/credit card transactions Survey: based of a survey of 1,544 Internet users aged 15+, conducted in March 2020; question asked: “Which of the following payment services do you use most often when deciding to make a quick transfer as a form of payment when shopping online?“, the base of respondents to this question were 790 online shoppers who paid by fast transfer services Source: Gemius, Izba Gospodarki Elektronicznej Polska (Chamber of Digital Economy), June 2020 184 33% of Poland’s online buyers would be influenced by the option to pay on delivery when considering the credibility of an E-Comm. site in 2020. Poland: Top 5 Factors Affecting Online Shoppers‘ Perception of Credibility of an E-Commerce Website When Purchasing for the First Time, incl. Payment-Related, in % of Online Shoppers, March 2020

Reviews about the online store 48%

Payment On Delivery Possible 33%

Clear and readable information about return policy and 26% possibility of complaint

Presence In Rankings & Comparisons 23%

Various Forms of Payment Available 21%

0% 20% 40% 60% in % of Online Shoppers

Note: does not add up to 100% due to multiple answers possible; only the top 5 answers are ranked Survey: based of a survey of 1,544 Internet users aged 15+, conducted in March 2020; question asked: “Imagine that for the first time you are entering a website of an online store. Select up to three aspects that most affect your belief that this store is credible?“, the base of respondents to this question were 1,131 individuals shopping online Source: Gemius, Izba Gospodarki Elektronicznej Polska (Chamber of Digital Economy), June 2020 185 The most popular payment method among Polish Internet users was “Debit Card” (47%), as of November 2020. Poland: Digital Payment Methods Owned, in % of Internet Users, November 2020

Debit Card 47%

Bank Account With Active Internet Access 40%

Bank Account Without Active Internet Access 25%

Bank Mobile Application Enabling Payments (BLIK/HCE) 23%

PayPal Account 19%

Mobile Payment Application (SkyCash, N26) 16%

Apple Pay,Garmin Pay, Fitbit Pay 11%

Visa Account 9%

MasterPass Account 7%

0% 20% 40% 60% in % of Internet Users

Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 2,400 Internet users, conducted by Mobile Institute via Computer Assisted Web Interview between November 6-12, 2020; question asked: “Please indicate what financial and transactional products you have?“, the base of respondents to this question were 2,400 individuals using the Internet between November 6-12, 2020 Source: Izba Gospodarki Elektronicznej Polska (Chamber of Digital Economy), Przelewy 24, VISA, December 2020 186 In Turkey, cryptocurrency’s adoption rate was 16%, as of the first quarter of 2020. Turkey: Cryptocurrency Adoption Rate, in % of Respondents, Q1 2020

Cryptocurrency owners 16%

Other 84%

Survey: based on a survey of 2,050 respondents conducted in Q1 2020; male 54%, female 46%; age groups: 18-24 - 22%, 25-34 - 29%, 35-44 – 25%, 45-54 - 16%, 55-64 – 7% Source: Statista & World Economic Forum, February 2021

187 “Debit card” was the most commonly used payment method (77%), followed by “Cash” (70%) in Czech Republic, as of January 2020. Czech Republic: Payment Methods Used To Pay, in % of Respondents, January 2020

Debit Card 77%

Cash 70%

Credit Card 20%

Mobile Application 12%

Prepaid Debit Card (Revolut) 3%

Smartwatch 3%

Payment "Stamp" 2%

0% 25% 50% 75% 100% in % of Respondents

Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 1,059 respondents aged 18 to 79 years old, conducted in January, 2020; question asked “Which means of payment do you use to pay?“ Source: Czech Banking Association, May 2020 188 The vast majority of online shoppers in Portugal (78%) preferred paying through ATM for their online purchases in 2020. Portugal: Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2020

Payment through ATM 78%

Credit/Debit Card 68%

Bank Transfer 61%

Paypal 55%

MbWay (Mobile Payment) 50%

Payment on Delivery 40%

Apple Pay 12%

Meo Wallet 9%

Another Payment Method 9%

0% 25% 50% 75% 100% in % of Online Shoppers

Note: does not add up to 100% due to multiple answers possible Survey: based on a survey of 1,000 responses; the date of survey and number of respondents were not revealed Source: Portuguese Association of Digital Economy (ACEPI), IDC, 2020 189 P2P, biometric payments and Amazon Pay were the top innovative contactless methods emerged in Portugal amid COVID-19, June 2020. Portugal: Top Innovative Contactless Payments Emerged During COVID-19, in % of Adults, June 2020

Peer-to-Peer Payment 9%

Biometric Payment 9%

Amazon Pay 7%

0% 5% 10% in % of Adults

Survey: based on a survey of 1,000 respondents aged 18+ in Portugal, conducted in June 22 - 30, 2020 Source: Oney, OpinionWay, October 2020 190 The most popular payment method used by Bulgarian consumers in the past month as of April 2021 was “Debit Card” (75%), followed by “Digital Wallet (46%). Bulgaria: Payment Methods Used In the Past Month When Making Payments Online, in % of Consumers, April 2021

Debit Card 75%

Digital Wallet (Skrill, NETELLER, Amazon Pay) 46% Credit Card 34%

Direct Bank Transfer 28%

Cryptocurrencies 15%

Pay By Invoice 13%

Prepaid Card 9%

eCash (Paysafecard, Paysafecash) 8%

A-Pay-By-Instalment Plan 5% None 6% Other 2%

0% 30% 60% 90% in % of Consumers

Survey: based on a survey of 8,111 consumers in the US (2,000 consumers), the UK, Canada, Germany, Austria, Bulgaria, Italy (1,000 consumers per country), data presented is related to Bulgarian representatives only; conducted in March-April, 2021; question asked “Which of the following payment methods have you used in the past month when making payments online?“ Source: Paysafe, Sapio Research, May 2021

191 Almost 70% of Bulgarians use “Debit Card” more often as a payment method for online shopping than before COVID-19, as of April 2021. Bulgaria: Online Payment Methods Used More Frequently Now Than Before COVID-19, in % of Consumers, April 2021

Debit Card 68%

Digital Wallet (Skrill, NETELLER, Amazon Pay) 35% Credit Card 26%

Direct Bank Transfer 19%

Cryptocurrencies 11%

Pay By Invoice 8%

Prepaid Card 6%

eCash (Paysafecard, Paysafecash) 6%

A-Pay-By-Instalment Plan 3% None 9% Other 1%

0% 30% 60% 90% in % of Consumers

Survey: based on a survey of 8,111 consumers in the US (2,000 consumers), the UK, Canada, Germany, Austria, Bulgaria, Italy (1,000 consumers per country), conducted in March-April, 2021; data presented is related to Bulgarian representatives only; question asked “Which of the following online payment methods are you using more frequently (a greater percentage of your transactions) now than before COVID-19?“ Source: Paysafe, Sapio Research, May 2021 192 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

193 The online payment industry in North America accelerated greatly, with the proximity mobile payment users predicted to reach 50% of all smartphone users. North America: Overview of Online & Mobile Payment Trends, June 2021  The North American digital payment industry has accelerated significantly over the past year. This was caused by a number of factors, and one of the remarkable ones was the pandemic, which appeared to be a huge challenge for both merchants and consumers and strengthened the trend of online adoption in payments and retail.  In the US, the number of proximity mobile payment users is expected to increase over the years to reach 125 million in 2025, with the growth rate peaking at 26% in 2020; with a lower growth rate going forward. Moreover, by 2025, the share of proximity mobile payment users in total smartphone users was expected to reach 50%. With that, Apple Pay was projected to be the most used payment gateway with 43.9 million users who made at least one transaction within the last 6 months prior to March 2021, as per eMarketer in the same month.  Moreover, the adoption of omnichannel online payments among the consumers in the US also accelerated, surpassing the use of only one type of digital payments in 2020 and being chosen by over 50% of consumers surveyed, as per McKinsey in November 2020.  Another payment method gaining momentum in the US payment industry is BNPL. With that, 52% of customers who used the service in the past claimed they would be encouraged to use BNPL if PayPal offered the service at zero interest. Out of the top popular players of the BNPL solutions, Klarna and Afterpay were the most downloaded apps in Q1 2021 in the US, with Klarna’s percentage of former downloads declining, while still remaining a leader, according to Sensor Tower cited by eMarketer in June 2021  Also, Paypal was chosen by 38% of the US adults as the most trusted online payment platform to make investments in or purchases with cryptocurrency, followed by Robinhood (14%), as per CivisScience in April 2021.  Canada has also witnessed a major shift in consumers’ payment habits amid COVID-19, mostly driven by the desire to make fewer in-person payments, as of April 2021, according to Paysafe in May 2021.  With regard to online payment methods in Canada, the three most widespread payment methods were E-transfers and credit cards, as per Financial Consumer Agency of Canada in March 2021. Meanwhile cash was used less often in 2021 compared to 2020.  In addition, another study revealed that credit cards were the most common payment form in Canada, chosen by 72% of consumers surveyed, followed by debit card (49%), as per Paysafe in May 2021.

Source: eMarketer, March 2021; McKinsey & Company, November 2020; eMarketer, June 2021; CivicScience, April 2021; Paysafe, May 2021; Financial Consumer Agency of Canada, March 2021 194 Online payment industry players in North America entered into partnerships in order to expand their services and accelerate contactless payments, such as BNPL and cryptocurrency in 2021. North America: Online & Mobile Payment News About Players, June 2021  With the acceleration of digital payment methods, cryptocurrencies are also booming, with the industry players coming up with various features to encourage usage among consumers. Coinbase, the online platform for buying, selling, transferring and storing digital currency, which also allows its users to make payments with its Coinbase Card, recently announced that now that card can be used with Google Pay and Apple Pay to spend crypto. Moreover, it decided to provide a select list of the US customers with up to 4% crypto rewards that can be earned back when using Coinbase Card with Apple Pay and Google Pay, as per Coinbase in June 2021.  Furthermore, a major industry player, PayPal, declared the setup of Checkout with Crypto, a feature that enables its US users to buy, store and sell cryptocurrency with PayPal, in addition to using the digital currency to make transactions with multiple merchants who accept crypto, as per PayPal in March 2021.  Other than that, a leading payments platform, Paysafe, recently partnered with SimplyPayMe, the global payments technology and infrastructure provider, to allow smooth, contactless card and ACH payments for small and medium-sized businesses in the US, as per Paysafe in June 2021. In addition, as Paysafe’s research revealed, 59% of the Americans find it more satisfying to pay with contactless cards post COVID-19, compared to the pre-pandemic period, thus, SimplyPayMe created the opportunity to make in- person payments seamlessly, where the card details are scanned into the app on the retailer’s smartphone before Paysafe processes the transaction.  In addition, amid the pandemic, numerous acquisitions were witnessed for extended and better online payment opportunities. One of the major ones was the acquisition of Canada-based leading BNPL provider, PayBright, for a total cash and equity consideration of nearly CAD 340 million, as per Affirm in January 2021. This collaboration is supposed to result in a wider and more diversified merchant and customer network throughout the US and Canada.  Another industry player, Afterpay, a financial company that allows executing payments later after the purchase, partnered with Adyen, a platform offering single payments globally online, via a mobile or at POS, to suggest its installment payments to merchants worldwide, as per PYMNTS.com in April 2021. Adyen obtained an opportunity to provide its customers in the US and Canada, as well as other countries, including Australia and New Zealand, with Afterpay’s pay-in-four installment service.

Source: Coinbase, June 2021; PayPal, March 2021; Paysafe, June 2021; Affirm, January 2021; PYMNTS.com, April 2021 195 Although mobile P2P payments in the US were seen to rise from USD 539 bil. (EUR 473 bil.) in 2020 to USD 797 bil. (EUR 700 bil.) in 2024, the growth rate was expected to decline substantially from 36.8% to 9.1%. United States: Value of Mobile P2P Payment Transactions, in USD billion, and Year-on-Year Change, in %, 2020e - 2024f 1000 100%

797.4

80% 750 730.9 649.7

538.7

60% Year Change Year

500 - on 393.9 36.8% -

40% in USD USD in billion 20.6%

250 Year % in 12.5% 20% 5.0% 9.1%

0 0% 2020e 2021e 2022f 2023f 2024f Mobile P2P Payment Transaction Value in % Year-on-Year Change Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: USD 1 = EUR 0.876819 estimates are based on the analysis of major mobile payment players; estimates from other research firms; and consumer smartphone, mobile payment adoption, and retail spending trends Definition: P2P payment is a transfer of funds from one individual to another using a mobile device; includes transfers on tablets; incl. transactions made via mobile browser and apps developed by nonbank providers (Facebook Messenger, Cash App, Venmo, etc.) and transactions made via mobile banking websites and apps developed by banks; excludes cross-border transactions Survey: based on an analysis of 18+ respondents Source: Insider Intelligence, June 2020 196 37% of US adults did not use mobile payments or deposit systems/ apps, as of April 2021, while among those who did, PayPal led (39%). United States: Mobile Payment Providers Methods Typically Used, in % of US Adults, April 2021

PayPal 39%

Venmo 15%

Zelle 12%

I Don't Use Mobile Payments 37% or Deposit Systems/Apps

0% 10% 20% 30% 40% 50%

in % of US Adults

Survey: based on a survey of 1,934 US adults, conducted online in April 2021; question asked “Which, if any, of the following mobile payment or deposit systems/apps do you typically use?“ Source: YouGov America, April 2021 197 Debit (52%) and credit (50%) cards topped the list of the preferred payment forms when shopping online in the US, as of April 2021. United States: Payment Methods Preferred When Shopping Online, in % of US Adults, April 2021

Debit Card 52%

Credit Card 50%

PayPal 41%

Gift Cards 26%

0% 20% 40% 60% in % of US Adults

Survey: based on a survey of 1,934 US adults, conducted online in April 2021; question asked “Which, if any, of the following do you use when making purchases online?“ Source: YouGov America, April 2021 198 Only 9% of the US adults used mobile payment apps for purchases in- store, while the majority preferred cash payments (59%), in April 2021. United States: Payment Methods Preferred When Purchasing In-Store, in % of US Adults, April 2021

Cash 59%

Debit Card (Using Chip) 52%

Credit Card (Using Chip) 38%

Debit Card (Swipe) 18%

Credit Card (Swipe) 17%

Via a Mobile Payment App 9%

0% 35% 70% in % of US Adults

Survey: based on a survey of 1,934 US adults, conducted online in April 2021; question asked “Which, if any, of the following do you use when making purchases in-store?“ Source: YouGov America, April 2021 199 In the US, the most used digital payment platform was PayPal (43%), followed by Venmo (15%) and Apple Pay (13%), April 2021. United States: Breakdown of Digital Payment Platforms Primarily Used, in % of Adults, April 2021

Other 19%

PayPal Samsung Pay 43% 3%

Google Pay 7%

Apple Pay 13%

Venmo 15%

Survey: based on a survey of 1,791 adults (18+), conducted between April 2019 - April 2021 question asked “What digital payment platform (digital wallet) do you primarily use?“ Source: CivicScience, April 2021 200 In the US, online payments in the past month were mostly executed with credit cards (60%) and debit cards (59%), as of March 2021. United States: Payment Methods Used When Paying Online in the Past Month, in % of Consumers, March 2021

Credit Card 60%

Debit Card 59%

Digital Wallet 40%

Direct Bank Transfer 29% Prepaid Card 22%

eCash (Electronic Cash) 12%

Pay by Invoice 11%

Cryptocurrencies 11%

A Pay-By-Instalment Plan 10%

Other 2%

None 5%

0% 35% 70% in % of Consumers

Survey: based on a survey of 8,111 consumers in the US (2.000), UK, Canada, Germany, Austria, Bulgaria, Italy (all 1,000) (data presented is related to the US only); conducted between March and April 2021; question asked: “Which of the following payment methods have you used in the past month when making payments online?” Source: Paysafe, May 2021

201 Debit cards (43%) and credit cards (40%) were the top payment forms that were used more often after COVID-19 in the US, March 2021. United States: Payment Methods Used More Frequently After COVID-19 than Before, in % of Consumers, March 2021

Debit Card 43%

Credit Card 40%

Digital Wallet 31%

Prepaid Card 16% Direct Bank Transfer/ACH 15%

eCash (Electronic Cash) 11%

Cryptocurrencies 9%

Pay by Invoice 8%

A Pay-By-Instalment Plan 8%

Other 1%

None 16%

0% 35% in % of Consumers

202 38% of consumers in the US changed their payment habits amid COVID-19 to make less in person payments, as of March 2021. United States: Drivers of Changed Payment Method Habits Amid COVID-19, in % of Consumers, March 2021

Make less in-person payments 38%

More familiar with new or alternative payment methods 26%

Want a more secure experience due to concerns about… 25%

Use payment methods that track spending more accurately 23%

Explore new technology generally 23%

Want a more seamless/frictionless experience at the… 18%

Make more transactions with businesses I am unfamiliar… 14%

Didn't make any online payments before COVID-19 13%

No longer have/use a bank account 5%

Other 5%

0% 25% 50% in % of Consumers

Survey: based on a survey of 8,111 consumers in the US (2.000), UK, Canada, Germany, Austria, Bulgaria, Italy (all 1,000) (data presented is related to the US only); conducted between March and April 2021; question asked: “Why have your payment method habits changed during COVID-19?” Source: Paysafe, May 2021

203 Paper checks (97%), cash (95%), and cards (95%) were the most popular payment forms among SBs in the US, but electronic payments are also gaining popularity, as of February 2021. United States: Payment Methods Small Businesses Are Familiar With, in % of Small Businesses, February 2021 Paper Check 97% Cash 95% Credit/Debit/Commercial Card 95% ACH* 93% PayPal 88% Wires 81% Venmo 72% Same-day ACH 52% Zelle 52% Cryptocurrency 44% Push To Card** 28% Real-Time Payments 16% Other 5%

0% 25% 50% 75% 100% in % of Small Businesses Note: *ACH – Automated Clearing House is a type of electronic bank-to-bank payment in the US, where payments may take more than 3 working days to appear in the banking account of the recipient **push to card – real-time push payments via Mastercard Send/Visa Direct Survey: based on a survey of 100 US-based small businesses with fewer than 20 employees generating between USD 500,000 and USD 4.9 million in annual revenue, conducted in February 2021; question asked “Which of the following payment methods are you familiar with?“ Source: Aite Group, May 2021 204 Generally, contactless card awareness in the United States increased from 66% in 2019 to 82% in 2020. United States: Breakdown of Contactless Card Awareness, in % of Consumers, 2019 & 2020

100%

18%

34% 80%

Have not heard of it 29% 60% Have heard but not interested 30% Have heard of it and interested 40% Have it

in % of Consumers of % in 32%

27% 20%

21% 9% 0% 2019 2020

Survey: based on a survey of about 2,000 consumers, conducted in August 2020; question asked “Have you heard of contactless cards?“ Source: McKinsey & Company, November 2020 205 Overall, US adults planned to continue using contactless payments after COVID-19, with Millennials (74%) and Gen Z (70%) leading, in Sept. 2020. United States: Adults Who Intend to Continue Using Contactless Payment Forms After COVID-19, by Generation, in %, September 2020

Millennials (1980-1993) 74%

Generation Z (1994-2002) 70%

Baby Boomers (1946-1964) 65%

Generation X (1965-1979) 65%

0% 20% 40% 60% 80% 100% in % of Adults

Source: Fiserv cited by eMarketer, May 2021 206 A survey done in December 2020 shows that 42% of respondents in the US used a BNPL service, with 38% missing at least one payment. United States: BNPL User Penetration Rate, in %, and Share of BNPL Users Who Missed at Least One Payment, in %, December 2020

BNPL User Penetration Rate Share of BNPL users who missed at least one payment

Missed at least one Used BNPL service payment 42% 38%

Other 58% Never missed a payment 62%

Survey: based on a survey of 1,038 American adults, conducted in December 2020 Source: Credit Karma, February 2021

207 In Q1 2021, Klarna (34%) and Afterpay (26%) were the top BNPL apps in the US, while the share of Affirm fell from 78% in 2018 to 16% in Q1 2021. United States: Top BNPL Applications, in % of Total BNPL Apps Downloads, Q4 2018 & 2019 & 2020 & Q1 2021 100% 3% 2% 4% 5% 6% 11% 17% 15% 16% 80%

33% Sezzle 38% 34% 60% Quadpay 4% Klarna 2% Perpay 40% 78% 2% 22% Afterpay 26%

25% Affirm in % of Total Downloads Total of % in 20% 26% 16% 16% 0% Q4 2018 2019 2020 Q1 2021

Note: payment solution apps defined as those that offer buy now pay later (BNPL) installment payments after a purchase; numbers may not add up to 100% due to rounding Source: Sensor Tower cited by eMarketer, June 2021 208 More than a half (52%) of the US consumers were very likely to use a zero interest BNPL option offered by PayPal for online purchases instead of the BNPL provider used in the past, as of 2020. United States: Share of Consumers Who Would Use a Zero Interest BNPL Offered by PayPal for Online Shopping Instead of BNPL Provider Used in the Past, in %, 2020

Not Likely to Use PayPal's Zero Interest BNPL Option 10%

Very Likely to Use PayPal's Zero Interest BNPL Option 52%

Somewhat Likely to Use PayPal's Zero Interest BNPL Option 38%

Survey: based on a survey of over 1 million consumer evaluations; conducted in 2020; question asked “If PayPal offered a zero interest Buy Now, Pay Later option for making an online purchase, how likely are you to use PayPal instead of the Buy Now, Pay Later provider that you used in the past?“ Base: Used BNPL in the last 6 months Source: Pi-360, The Futurist Group, December 2020 209 The top reason for using BNPL in the US was to make purchases that otherwise would not fit in their budget (45%), as of March 2021. United States: Top Reasons for Using BNPL Option, in % of Adults, March 2021

To make purchases that otherwise wouldn't fit in my 45.0% budget To avoid paying credit card interest 36.9%

To borrow money without a credit check 24.7%

To safeguard personal data 20.8%

I don't like to use credit cards 19.2%

My credit cards are maxed out 17.2%

I can't get approved for a credit card 14.2%

I don't have bank accounts 7.7%

Other 5.7%

0% 30% 60%

in % of Adults

Survey: based on a survey of 2,000 US adults aged 18+ (59% of female, 41% of male), conducted on March 10, 2021; question asked “Why do you use BNPL?“ Source: The Ascent (A Motley Fool Service), March 2021 210 Another Sep. 2020 survey showed a much lower US BNPL penetration rate of 6% on average, with the highest among bridge millennials (12%). United States: BNPL User Penetration Rate, in % of Respondents, and Change in Use of BNPL Compared to March 2020, in %, by Age Groups, September 2020 BNPL User Penetration Change in Use of BNPL, as of September 2020

12% Bridge Millenials Bridge Millenials 28%

10% Millenials Millenials 27%

Generation Z 3% Generation Z 7%

Whole Sample 6% Whole Sample 5%

0% 5% 10% 15% 20% 0% 10% 20% 30% 40% 50%

in % of Online Consumers in % Change compared to March 2020

Survey: based on a survey of 4,838 online consumers in the US in September 2020 and 10,036 in March 2020 who used BNPL service within the last 12 months; both samples were balanced to be statistically representative; those who were in the group “BNPL users” group used BNPL service within the last 12 months Source: Pymnts, December 2020

211 In the US, between July 2020 and March 2021, the highest percentage growth in BNPL user penetration happened in the age group 54+ (98%). United States: BNPL Service User Penetration Rates, by Age Groups, in % of Consumers, July 2020 & March 2021 Percentage of consumers who have used a Percentage of consumers who have used a Percentage growth, Age Group BNPL service in July 2020 BNPL service in March 2021 July 2020 to March 2021

18–24 37.71% 61.16% 62%

25–34 46.77% 60.08% 28%

35–44 50.13% 60.58% 21%

45–54 42.22% 53.07% 26%

Over 54 20.63% 40.88% 98%

Survey: based on a survey of 2,000 US respondents, conducted in March 2021 and July 2020 Source: The Ascent cited by Fool, March 2021

212 In the USA, the majority (62%) of first-time BNPL service users had credit utilization rate over 75%, as of July 2020. United States: Breakdown of BNPL Usage, by Credit Utilization Rate at First BNPL Transaction, in %, July 2020 Less than 25 percent 12%

Between 25 and 50 percent 11%

Between 50 and 75 percent Over 75 percent 15% 62%

Survey: the source did not provide further details of the survey Source: Cardify, July 2020

213 Afterpay (34%), followed by Affirm (18%) and QuadPay (16%) were the most common BNPL lenders among the US consumers in May 2020. United States: Breakdown of Most Common BNPL Lenders Used, incl. Afterpay, Affirm, Bread, GreenSky, Klarna, and QuadPay, in % of BNPL Users, May 2020 Other GreenSky 4.5% 4.1%

Klarna 8.3% Afterpay 33.5%

Bread 10.5%

QuadPay 15.7%

Affirm 17.6%

Survey: based on a survey of 1,199 adults aged 18+ from the US, conducted in May 2020; 45% female and 55% male Source: Coupon Follow, June 2020

214 According to another source, in March 2021, PayPal’s BNPL (44%), led the industry in the US, followed by Affirm (34%), and Klarna (33%). United States: Breakdown of Most Common BNPL Lenders Used, incl. Affirm, Afterpay, FuturePay, Klarna, and PayPal, in % of Adult BNPL Users, March 2021

Bill Me Later / PayPal Credit 43.5% / PayPal Pay in 4

Affirm 33.7%

Klarna 33.3%

Afterpay 22.2%

QuadPay 19.5%

FuturePay 19.1%

Sezzle 16.0%

Splitit 14.8%

0% 10% 20% 30% 40% 50% in % of Adult BNPL Users

Note: Bill Me Later was an independent company until it was acquired by PayPal. It is now part of PayPal Credit; Pay in 4 is separate from PayPal credit, and is PayPal's most prototypical BNPL product; PayPal Credit, however, offers interest-free financing on some purchases Survey: based on a survey of 2,000 American BNPL users ages 18+, conducted in March 2021 Source: The Ascent, March 2021

215 Regarding the number of US BNPL users, PayPal topped the list with 34.6 million, followed by Klarna (8 million), as of November 2020. United States: Number of BNPL Users, by Service Provider, incl. Affirm, Afterpay, Bread, FuturePay, Klarna, PayPal, QuadPay, Sezzle, and Splitit, in millions, November 2021

PayPal Credit 34.6

Klarna 7.9

Affirm 5.6

Afterpay 5.6

FuturePay 3.0

QuadPay 2.5

Sezzle 1.8

Bread 1.6

Splitit 0.3

0 10 20 30 40 50 in millions

Note: the numbers were collected from the companies’ reports, as well as estimated by Corestone Advisors Source: Forbes, November 2020

216 31% of US BNPL adult users trust those services more than credit card companies regarding fair business practices, as of March 2021 survey. United States: Breakdown of BNPL Users’ Attitude Towards BNPL Lenders Compared to Credit Card Companies, in % of Adult BNPL Users, March 2021

Trust BNPL providers a lot more than credit card companies when it 13.1% comes to fair business practices

Trust BNPL providers more than credit card companies 17.6%

Trust BNPL providers and credit card companies equally 43.8%

Trust credit card companies more than BNPL providers 15.7%

Trust credit card companies a lot more than BNPL providers 9.9%

0% 10% 20% 30% 40% 50% in % of Adult BNPL Users

Survey: based on a survey of 2,000 American BNPL users ages 18+, conducted in March 2021 Source: The Ascent, March 2021

217 As of March 2021, the average amount spent using BNPL in the United States was usually less than USD 100 (49%). United States: Average Amount Spent via BNPL, in % of Adult BNPL Users, March 2021

Over USD 1,000 7%

USD 501 to USD 1,000 USD 50 or less 9% 25%

USD 251 to USD 500 15%

USD 101 to USD 250 USD 51 to USD 100 20% 24%

Survey: based on a survey of 2,000 American BNPL users ages 18+, conducted in March 2021 Source: The Ascent, March 2021

218 “Clarity of fees or interest rates” was the top reason (42%) for US online consumers to make use of BNPL option, as of September 2020. United States: Breakdown of Reasons to Use BNPL, in % of Online Consumers, September 2020

Clarity of fees or interest rates 41.8%

Ability to monitor spending 39.1%

Convinience of the option 37.2%

Number of merchants who accept this payment type 36.7%

Trust that information is secure 33.1%

Company's website is easy to use 31.3%

Amount of funds availible to me with this option 30.6%

Rewards offered 24.3%

0% 10% 20% 30% 40% 50%

in % of Online Consumers

Survey: based on a survey of 4,838 online consumers in the US, conducted in September 2020; the sample was balanced to be statistically representative; those who were in the group “BNPL users” group used BNPL service within the last 12 months Source: Pymnts, December 2020

219 Compared to Jul. 2020, in Mar. 2021, the share of the US adults who are very likely to use a BNPL service in the next year increased by 12 p.p. United States: Breakdown of Intentions to Use BNPL Services in the next 12 Months, in % of Adults, July 2020 & March 2021

19% Very likely 7%

17% Somewhat likely 15%

15% Neutral or unsure 20% Mar-21

18% Somewhat unlikely Jul-20 20%

31% Very unlikely 38%

0% 10% 20% 30% 40% 50% in % of Adults

Survey: based on a survey of 2,000 American adults ages 18+, conducted in July 2020 and March 2021; question asked “How likely are you to make a late payment on a buy now, pay later plan in the next 12 months?“ Source: The Ascent, March 2021

220 A December 2020 survey showed the cryptocurrency adoption rate in the US as 11%, significantly higher than the global average of 3%. United States: Cryptocurrency Adoption Rate, and Global Average Cryptocurrency Adoption Rate, in % of Population, December 2020

USA Cryptocurrency Adoption Rate Global Average Cryptocurrency Adoption Rate

Use Cryptocurrency Use Cryptocurrency 11.2% 3.1%

Other Other 88.8% 85.7%

Source: TrippleA, January 2021

221 A quarter of consumers in the US purchased from “groceries” and “online gaming/gambling” categories with cryptocurrency, Feb. 2021. United States: Product Categories Purchased/to Be Purchased with Cryptocurrency, by Owners & Nonowners, in % of Consumers, February 2021 Owners who purchased Owners who would consider purchasing with Cryptocurrency nonowners who Categories with cryptocurrency cryptocurrency in the future would be interested in purchasing Groceries 25.3% 51.4% 19.1%

Online gaming or gambling 25.1% 48.6% 13.9% Streaming 24.1% 53.0% 20.4% Computers & electronics 24.1% 57.8% 19.4% Financial services 23.3% 57.8% 14.0% Restaurants/food delivery 23.2% 52.9% 18.9% Clothing & accessories 22.9% 54.2% 19.0% Entertainment & media 21.2% 55.7% 13.0% Furniture & appliances 18.6% 57.9% 14.3% Professional services 18.5% 55.7% 9.4% Jewelry 18.3% 54.8% 12.1% Travel & leisure 17.4% 62.6% 18.6%

Real estate 17.1% 57.9% 12.0% Education/training services 16.7% 52.6% 7.8% Autos, boats & other vehicles 16.2% 55.9% 11.9% At least one category 57.4% 92.6% 58.7% Survey: based on a survey of 8,008 consumers who were current or former cryptocurrency users and cryptocurrency nonusers, conducted between February 8-23, 2021 Source: PYMNTS, BitPay, May 2021 222 In the US, the majority of Generation Z consumers (72.2%) made purchases in at least one product category with cryptocurrency, compared to other generations, as of February 2021. United States: Consumers Who Made Purchases Using Cryptocurrency, by Product Categories & Generation, in %, February 2021 Categories Generation Z Millennials Bridge Millennials Generation X Baby boomers & seniors Streaming 32.9% 28.8% 26.7% 18.1% 6.9% Restaurants/food delivery 30.3% 26.2% 25.7% 19.6% 9.2% Groceries 29.8% 28.6% 28.6% 21.5% 14.2% Computers & electronics 26.9% 28.9% 25.4% 19.4% 10.9% Entertainment & media 26.4% 24.7% 23.6% 16.9% 9.4% Online gaming/gambling 26.2% 28.6% 28.4% 23.7% 12.2% Real estate 25.8% 18.8% 17.4% 13.6% 7.4% Clothing & accessories 25.4% 26.8% 27.7% 20.6% 8.3% Jewelry 24.3% 20.6% 18.8% 15.6% 6.4% Financial services 23.6% 27.6% 25.2% 20.0% 11.5% Education/training services 21.9% 19.5% 16.4% 14.5% 3.1% Furniture & appliances 21.5% 22.8% 21.9% 15.1% 5.3% Professional services 18.3% 21.6% 18.7% 17.0% 8.9%

Autos, boats or other vehicles 17.5% 20.4% 17.4% 13.4% 3.4% Travel & leisure 14.0% 21.6% 19.3% 16.3% 6.0% At least one category 72.2% 63.8% 62.7% 50.2% 28.1%

Survey: based on a survey of 8,008 consumers who were current or former cryptocurrency users and cryptocurrency nonusers, conducted between February 8-23, 2021 Source: PYMNTS, BitPay, May 2021 223 The most popular product category among US consumers to consider purchasing with cryptocurrency was “Travel & leisure”, as of Feb. 2021. United States: Consumers Who Would Consider Purchasing in the Future Using Cryptocurrency, by Product Categories & Generation, in %, February 2021 Categories Generation Z Millennials Bridge Millennials Generation X Baby boomers & seniors Travel & leisure 65.3% 61.6% 63.3% 65.7% 55.9% Entertainment & media 60.6% 55.4% 56.2% 59.1% 41.6% Computers & electronics 59.2% 54.8% 59.8% 64.4% 52.9% Financial services 56.9% 56.4% 60.4% 63.4% 51.6% Furniture & appliances 55.7% 57.4% 59.1% 62.5% 51.1% Clothing & accessories 54.9% 53.0% 55.3% 58.8% 47.0% Jewelry 54.9% 54.8% 59.4% 61.0% 39.3% Online gaming/gambling 54.3% 50.5% 49.1% 49.5% 30.4% Professional services 53.8% 57.9% 61.1% 59.2% 40.6% Groceries 53.6% 51.1% 53.2% 54.5% 42.3% Real estate 53.0% 60.4% 62.3% 63.1% 40.6% Autos, boats or other vehicles 53.0% 56.3% 59.4% 61.2% 44.7% Restaurants/food delivery 52.7% 53.4% 54.1% 54.5% 46.7%

Education/training services 50.3% 54.5% 58.5% 57.8% 34.3% Streaming 47.6% 53.2% 54.9% 58.9% 44.6% At least one category 96.4% 93.1% 93.3% 92.9% 28.1%

Survey: based on a survey of 8,008 consumers who were current or former cryptocurrency users and cryptocurrency nonusers, conducted between February 8-23, 2021 Source: PYMNTS, BitPay, May 2021 224 “PayPal” (38%) was chosen as the most trusted digital payment platform to make investments in or purchases with cryptocurrency of choice in the US, as of April 2021. United States: Breakdown of Digital Payment Platforms That are Trusted to Invest In or Purchase With Cryptocurrency of Choice, in % of Respondents, April 2021

Other 22%

PayPal BlockFi 38% 1% Coinmama 2% eToro 2%

Google Pay 9%

Coinbase Robinhood 11% 14%

Survey: based on a survey of 2,226 adults (18+), conducted between April 2019 - April 2021 question asked “Which digital platform do you trust the most to make investments in or purchases with your cryptocurrency of choice?“ Source: CivicScience, April 2021 225 66% of the US consumers who have been or plan to be vaccinated will continue to use debit/credit cards to avoid exchanging cash when shopping in-store, as of January 2021. United States: COVID-19 Precautions to Be Taken While Shopping In-Stores, in % of Consumers Who Have Been or Plan to Be Vaccinated, January 2021

Wearing Protective Face Coverings 93%

Using Disinfectants 87%

Shopping At Less Busy Times 66%

Using Debit/Credit Cards to Avoid Exchanging Cash 66%

Using Self-Checkout 58%

Wearing Protective Gloves 21%

0% 25% 50% 75% 100% in % of Consumers Who Have Been or Plan to Be Vaccinated

Survey: based on a survey of 20,000 consumers, conducted in January 20th - 24th, 2021 Source: Shopkick, January 2021 226 The US was projected to lag behind in instant payments adoption, holding only 8% of global instant payment transaction values in 2025. United States: Share of Instant Payments, in % of Global Instant Payment Transaction Values, 2025f

Instant Payments 8%

Others 92%

Source: Juniper Research, September 2020 227 In 2020, 17% of U.S. adults abandoned their shopping carts during checkout because they didn’t trust the site with their credit card data. United States: Top Reasons for Shopping Cart Abandonment During Checkout, in % of Adults, December 2020

Extra Costs Too High (Shipping, Tax, Fees) 49%

The Site Wanted Me To Create An Account 24%

Delivery Was Too Slow 19%

Too Long/Complicated Checkout Process 18%

I Didn't Trust The Site With My Credit Card Information 17%

I Couldn't See/Calculate Total Oder Cost Upfront 17%

Website Had Errors/Crashed 12%

Returns Policy Wasn't Satisfactory 11%

There Weren't Enough Payment Methods 7%

The Credit Card Was Declined 4%

0% 20% 40% 60% in % of Adults Note: normalized without the answer “I was just browsing”; does not add up to 100% due to multiple answers possible Survey: based on a survey of 4,329 adults; question asked: “Have you abandoned any online purchases during the checkout process in the past 3 months? If so, for what reasons?“; the date of the survey was not revealed Source: Baymard Institute, December 2020 228 The most used methods for online payments in the month prior to March-April 2021 in Canada were credit (72%) and debit (49%) cards. Canada: Payment Methods Used When Paying Online in the Past Month, in % of Consumers, March-April 2021

Credit Card 72%

Debit Card 49%

Digital Wallet 31%

Direct Bank Transfer 20% Prepaid Card 16%

eCash (Electronic Cash) 8%

Pay by Invoice 7%

Cryptocurrencies 5%

A Pay-By-Instalment Plan 4%

Other 4%

None 5%

0% 20% 40% 60% 80% in % of Consumers

Survey: based on a survey of 8,111 consumers in the US (2.000), UK, Canada, Germany, Austria, Bulgaria, Italy (all 1,000) (data presented is related to Canada only); conducted between March and April 2021; question asked: “Which of the following payment methods have you used in the past month when making payments online?” Source: Paysafe, May 2021 229 Over a half (52%) of Canadian consumers used credit cards more often after the COVID-19 onset than before, as of March 2021. Canada: Payment Methods Used More Frequently After COVID-19 than Before, in % of Consumers, March 2021

Credit Card 52%

Debit Card 32%

Digital Wallet 21%

Direct Bank Transfer 9% Prepaid Card 8%

eCash (Electronic Cash) 6%

Pay by Invoice 4%

Cryptocurrencies 4%

A Pay-By-Instalment Plan 3%

Other 1%

None 16%

0% 20% 40% 60% in % of Consumers

230 Almost half (46%) of Canadian consumers changed their payment habits amid COVID-19 to make less in person payments, March 2021. Canada: Drivers of Changed Payment Method Habits Amid COVID-19, in % of Consumers, March 2021

Make less in-person payments 46%

Use payment methods that track spending more accurately 19%

Want a more secure experience due to concerns about… 19%

More familiar with new or alternative payment methods 18%

Want a more seamless/frictionless experience at the… 17%

Explore new technology generally 16%

Didn't make any online payments before COVID-19 11%

Make more transactions with businesses I am unfamiliar… 9%

No longer have/use a bank account 3%

Other 5%

0% 20% 40% 60% in % of Consumers

231 In 2019, “Credit Card” (31%) held the biggest share of total transaction volume in Canada, surpassing “Debit Card” (28%) and “Cash” (18%). Canada: Breakdown of Payment Methods, in % of Total Transaction Volume, 2019

Online Transfer Prepaid Card 2.5% ABM* 1.5% 2.1% Cheque & Paper Electronic Fund Transfer 2.6% Credit Card (EFT) 31.1% 13.4%

Cash 18.4%

Debit Card 28.4%

Note: *ABM - automated banking machine is a common method of getting cash, making deposits and paying bills for Canadians across the country Source: Payments Canada, November 2020 232 “Electronic Fund Transfer” (52%) dominated the transaction value in Canada, followed by “Cheque & Paper” (36%) in 2019. Canada: Breakdown of Payment Methods, in % of Total Transaction Value, 2019

Online Cash ABM* Prepaid Debit Card Transfer 0.9% 0.7% Card 2.6% Credit Card 1.8% 0.2% 6.2%

Electronic Fund Transfer (EFT) 51.8%

Cheque & Paper 35.9%

Note: *ABM - automated banking machine is a common method of getting cash, making deposits and paying bills for Canadians across the country Source: Payments Canada, November 2020 233 The majority (74%) of adult Internet users in Canada were aware of digital wallets and mobile payment services, as of March 2020. Canada: Awareness of Digital Wallets & Mobile Payment Services, by Province, in % of Adult Internet Users, March 2020

Prince Saskat New British Nova Newfoun Edward Ontario Manitoba Alberta Quebec Total chewan Brunswick Columbia Scotia dland Island

Sample 72 92 689 98 99 253 103 86 157 351 2000 size:

Heard of mobile payment/dig 82% 79% 78% 78% 77% 76% 74% 74% 72% 65% 74% ital wallet services before

Didn’t hear of mobile payment/dig 14% 17% 18% 19% 22% 21% 23% 22% 23% 32% 23% ital wallet services before

Don’t know 4% 3% 4% 3% 1% 3% 3% 3% 5% 3% 4%

Survey: based on a survey of 2,000 Internet users (18+), conducted in March 2020; question asked “Have you heard of mobile payment or digital wallet services before?“ Source: CIRA, The Strategic Counsel, April 2020 234 The majority of Canadians (73%) believe that shopping digitally increases the exposure to fraud, as of February 2021. Canada: Share of Respondents Who Believe That Online Shopping Increases Exposure to Fraud, in %, February 2021

Others 27%

Believe Shopping Digitally Increases Exposure to Fraud 73%

Survey: based on a survey of 1,540 respondents, conducted between February 5-7, 2021 Source: Leger, Moneris, March 2021

235 The majority of Canadians (63%) claimed to feel better when shopping online if a site has a built-in fraud & payment protection, as of Feb. 2021. Canada: Top Factors That Impact the Online Shopping Comfort Level, in % Respondents, February 2021

Feel better if a site has built-in fraud & payment protection 63% as a main factor

Feel better shopping online with a large, recognizable 53% brand

Feel better if they're able to remove credit card data from 51% Internet

0% 35% 70% in % of Respondents

Survey: based on a survey of 1,540 respondents, conducted between February 5-7, 2021 Source: Leger, Moneris, March 2021 236 In Canada, the majority of respondents in October 2020 survey wished a BNPL option to be offered at checkout, with 35-44 age group leading. Canada: Breakdown of Respondents Who Wish BNPL Option to be Offered, by Checkout Channel, and by Age Groups, in %, January 2021 Online In-store

18-24 year-olds 61.2% 18-24 year-olds 61.0%

25-34 year-olds 64.1% 25-34 year-olds 64.0%

35-44 year-olds 65.4% 35-44 year-olds 65.0%

54.8% 45-54 year-olds 45-54 year-olds 55.0%

55-64 year-olds 52.2% 55-64 year-olds 52.0%

47.0% 65+ year-olds 65+ year-olds 47.0%

0% 50% 100% 0% 50% 100% in % of Respondents in % of Respondents

Survey: based on a survey of 2,500 Canadians across all regions XXX, conducted in October 2020 Source: PayBright, January 2021

237 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

238 Latin American online payments accelerated amid COVID-19 in 2020, and its B2C E-Commerce market is expected to be the fastest-growing globally, at 36.7%. Latin America: Post-COVID-19 Online Payment Market, August 2021  The online payment market in Latin America was strongly impacted by the COVID-19 pandemic and the restrictions imposed in the region. In some areas, the lockdown regulations were strict, while in others softer. This influenced the digital adoption of the countries, meaning that those nations that had rather limited opportunities in the physical world, turned online. The health crisis prompted Latin Americans to change not only their shopping behavior but also the way transactions are done. More than 40 million of them opened bank accounts amid the pandemic in 2020 and more than 50 million purchased online for the first time, as per Business Insider in April 2021.  The Latin American B2C E-Commerce market was expected to be the fastest-growing worldwide in 2020. While the global average growth rate was expected to be 27.6%, Latin American was estimated at 36.7%, as per eMarketer in December 2020.  Argentina was estimated to have the fastest-growing B2C E-Commerce market globally in 2020, at 79% y-o-y, while Brazil was expected to be the fourth country with 35%, as per the same source.  Mobile shopping is popular in the region. Mercado Libre, a leading regional online merchant, reported a significant part of B2C E-Commerce sales made via a mobile, especially in Mexico, where of all B2C E-Commerce sales, 81.5% were expected to be executed via mobile in 2020, as per eMarketer inn December 2020. Despite the popularity of mobile devices for shopping online, proximity mobile payment use in Latin American countries lagged other parts of the world: in Brazil mobile proximity payment was used by only 20.7% of all smartphone owners in 2021, and in Mexico the share was 14.2%, as per Insider Intelligence in July 2021.  In most Latin American countries, cash usage saw a steady decline, with 62% of consumers claiming to use less cash due to COVID-19 in 2020 and 40% decreasing this usage by at least 20%, according to Mastercard in November 2020. When shopping in-store, 41% of consumers chose “credit card” as preferred payment method, followed by “cash” (33%). When purchasing online, 32% of customers opted for “credit card” with “debit card” (28%) as second choice, as per the same source.  One of the alternative payment methods adopted in the region was real-time payments, which was predicted to accelerate in the region over the next 5 years. Namely, the top 3 markets with the highest projected number of RTP transactions in 2025 are Brazil with 4.1 billion in 2025, Mexico – 1.7 billion and Chile – 988 million, as per ACI WorldWide, GlobalData in March 2021.  Another way to make payments that gained momentum was WhatsApp, a messenger which also offers a P2P payments service. This was planned to launch in Brazil after getting the approval of the nation's central bank in 2021, as per eMarketer in April 2021. With a projected 112.8 million users in 2021, WhatsApp is expected to succeed in the market. However, another major player in the country, PIX, the central bank's instant payments system, is also gaining momentum and the Brazilian authorities may not give WhatsApp an opportunity to operate beyond P2P payments. Source: eMarketer, December 2020; Insider Intelligence, July 2021; eMarketer, April 2021; Mastercard, November 2020; ACI WorldWide, GlobalData, March 2021; Business Insider, April 2021 239 In Latin America, “Credit Card” (32%) was mostly used for online purchases amid COVID-19 in 2020, followed by “Debit Card” (28%). Latin America: Top Payment Methods Used for E-Commerce Purchases Amid COVID-19, in % of Consumers, 2020 Other Mercado Pago 6% 4%

Bank Transfer 5% Credit Card 32%

PayPal 6%

Payment Voucher 8%

Cash 9%

Debit Card 28%

Survey: based on a survey of 2,556 consumers in 13 markets (Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Jamaica, Mexico, Panama, Peru, Puerto Rico), question asked “For in-store purchases, what payment method do you use most often today?“ Source: Mastercard, AMI, November 2020 240 The most significant cash usage decline was seen in Chile compared to other markets in Latin America, with 74% of consumers reducing it by at least 20% in 2020. Latin America: Cash Usage Decrease, in % of Consumers, 2020

Chile 17% 57% 26% Panama 23% 48% 29% Peru 24% 44% 32% Puerto Rico 20% 45% 35% Costa Rica 21% 43% 36% Ecuador 19% 44% 37% Colombia 27% 35% 38% Dominican… 21% 40% 39% Mexico 25% 36% 39% Guatemala 21% 37% 42% Brazil 19% 38% 43% Argentina 22% 32% 46% Jamaica 23% 30% 47% Region 22% 40% 38%

0% 20% 40% 60% 80% 100% in % of Consumers

Reported a 20% Decrease in the Cash Usage Reported a 1-20% Decrease in the Cash Usage Others

Survey: based on a survey of 2,556 consumers in 13 markets (Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Jamaica, Mexico, Panama, Peru, Puerto Rico), question asked “How has your use of cash changed during the COVID-19 pandemic?“ Source: Mastercard, AMI, November 2020 241 “Digital wallets” was an alternative payment method in Brazil preferred by 16% of consumers when shopping online cross-border in 2020. Brazil: Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020

Boleto Bancário 68%

Credit Card 54%

Debit Card 21%

Digital Wallets 16%

Prepaid Cards 9%

Bank Transfer 7%

Debit Into Account 6%

Mileage Program 4%

Others 4%

0% 20% 40% 60% 80% in % of Cross-Border Consumers Note: does not add up to 100% due to multiple answers possible Definition: Boleto Bancário - an official Brazilian payment method regulated by Central Bank of Brazil Survey: based on a survey of 3,280 Latin American cross-border consumers mainly in Brazil, Mexico, Colombia and Chile that made purchases in the last 12 months, question asked “What payment method(s) do you prefer to use for online shopping on international websites?“; the survey date was not revealed by the source Source: EBANX, December 2020 242 An “Installment Credit Card” (59%) and “Credit Card” (53%) were the most common payment methods when shopping online via mobile in Brazil, as of June 2021. Brazil: Top Payment Methods Used When Shopping Online via a Mobile, in % of Consumers, June 2021

Installment Credit Card 59%

Credit Card 53%

Bank Payment Slip 45%

PIX 36%

Automatic Debit Card 25%

Mobile Payment via App 23%

Cash 12%

Store Card 9%

Voucher Benefits 7%

0% 10% 20% 30% 40% 50% 60% 70% in % of Consumers

Survey: based on a survey of 579 consumers, conducted in June 2021; question asked “What is the most used payment method when you shop online via mobile?“ Source: SBVC, Qualibest, July 2021

243 Almost nine in ten consumers (89%) in Brazil had already made a purchase online, as of June 2021. Brazil: Share of Consumers Who Already Made a Purchase Online, in %, June 2021

Others 11%

Already Made a Purchase Online 89%

Survey: based on a survey of 579 consumers, conducted in June 2021 Source: SBVC, Qualibest, July 2021

244 A quarter (25%) of consumers in Brazil do not use a mobile payment app because they don’t trust it, as of June 2021. Brazil: Top Reasons Not to Use Mobile Payment App, in % of Consumers, June 2021

I don't think it is safe/I don't trust it 25%

I don't know how it works 22%

I don't have a credit card 15%

I don't have a compatible mobile device 8%

I don't have a checking account 6%

I don't know what it is 5%

0% 10% 20% 30% in % of Consumers

Survey: based on a 3 editions-survey of consumers (1st edition 605; 2nd edition: 600; 3rd edition: 654) , conducted in June 2021; question asked “What is the main reason for not using mobile payment via app?“ Source: SBVC, Qualibest, July 2021 245 The share of those who suffered from financial fraud in Brazil increased from 46% in 2019 to 59% in 2021. Brazil: Share of Respondents Who Suffered and Did not Suffer from Financial Fraud, in %, 2019 & 2021

2019 2021

Did not Suffer From Suffered from Any Financial Fraud Financial Fraud 41% 46%

Did not Suffer From Any Financial Fraud Suffered from 54% Financial Fraud 59%

Survey: based on a survey of 1,600 respondents, conducted in May - June 2019 and April 2021; Source: CNDL, June 2021 246 Only 9% of Brazilian consumers opted for “Mileage Program” when shopping online cross-border in 2020. Mexico: Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020

Debit Card 49%

Credit Card 29%

Bank Transfer 15%

Mileage Program 9%

SPEI 6%

Digital Wallets 5%

Debit Into Account 4%

Prepaid Cards 4%

Others 38%

0% 20% 40% 60% in % of Cross-Border Consumers Note: does not add up to 100% due to multiple answers possible Definition: SPEI - an electronic funds transfer system owned by Mexico’s Central Bank Survey: based on a survey of 3,280 Latin American cross-border consumers mainly in Brazil, Mexico, Colombia and Chile that made purchases in the last 12 months, question asked “What payment method(s) do you prefer to use for online shopping on international websites?“; the survey date was not revealed by the source Source: EBANX, December 2020 247 “Credit Card via a Payment Platform” led in the share of sales made over a year in Argentina in 2019 & 2020, with 56% and 62%,respectively. Argentina: Breakdown of Top Payment Methods, in % Total Sales Made in a Year, 2019 & 2020 2019 2020

Credit Card at Bank Transfer Credit Card Debit Card at POS 1% at POS Bank Transfer Digital Wallet POS/Online 1% 1% 1% 4% 7% Debit Card at POS/Online Cash Payment 6% When Picking Up/Receving a Cash Payment Product or at When Picking Pago Up/Receiving a Fácil/Rapipago Product or at Pago 11% Fácil/Rapipago 11% Credit Card via a Credit Card via a Payment Platform Credit Card via a Credit Card via a Payment Gateway 56% Payment Platform Payment Gateway 14% 21% 62%

Note: *Pago Fácil – non-bank payment collection network in Argentina where one can make personal payments, recharge a cell phone, withdraw cash and send money within a country; Rapipago – non-bank payment collection service in Argentina allowing consumers to pay utility and tax bills through Service Centers/agents, such as supermarkets, shopping malls, gas stations, subways etc. Definition: Payment gateways mostly handle the communication between an online store and the bank (or card) and money from each sale is credited directly to a bank account, without any intermediate steps. Payment platform offer an indirect connection, that is, the money collected for each sale is credited to a virtual account of the platform and the transfer needs to be requested to a bank account. Survey: based on a survey of over 220 CACE member companies, question asked “Of the total sales made this year, what was the share (in%) of the following means of payment?“; the survey date was not revealed by the source Source: Cámara Argentina de Comercio Electrónico (CACE), Kantar TNS, February 2021 248 Use of alternative payments via cryptocurrency in Argentina fell from 2019 to 0.3% in 2020, surpassing “Paper-Based Means of Payment”. Argentina: Top Payment Methods Used in the Past Month, in % of Argentine IBA Adults, 2019 & 2020

2019 2020

Physical Debit/Credit/Prepaid Cash 84.8% 82.3% Cards

Physical Debit/Credit/Prepaid 83.3% Cash 82.0% Cards

Account Account Debit/Transfer/Standing 67.8% Debit/Transfer/Standing Orders 48.5% Orders Paper-Based Means of Payment (Checks/Promissory 4.0% Virtual Card 21.5% Notes)

Virtual Card 2.5% Cryptocurrencies 0.3%

Paper-Based Means of Payment Cryptocurrencies 0.2% 0.8% (Checks/Promissory Notes)

0% 50% 100% 0% 50% 100% in % of Argentine IBA Adults in % of Argentine IBA Adults

Survey: based on a survey of 400 Argentine IBA (Internet-using and banked) adults, survey date was not revealed by the source Source: Minsait Payments, Afi, October 2020 249 The top 3 online payment methods for cross-border shopping in 2020 in Colombia were “Credit Card” (55%), “PSE” (46%) & “Debit Card” (41%). Colombia: Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020

Credit Card 55% PSE 46% Debit Card 41% Nequi 29% Bank Transfer 13% Prepaid Cards 11% Mileage Program 9%

Digital Wallet 6% Online Deibt 6%

Servipag 4% Others 12%

0% 20% 40% 60% in % of Cross-Border Consumers Note: does not add up to 100% due to multiple answers possible Definition: PSE (eng. Secure Online Payments button) – a service of ACH Colombia that allows companies to sell or collect funds online, in which customers authorize the debit of funds from their bank's virtual banking system; Nequi – a Colombia-based fintech created by Bancolombia (one of the biggest banks in the country) that provides customers with online banking experience; Servipag – a company specializing in transactions and payments Survey: based on a survey of 3,280 Latin American cross-border consumers mainly in Brazil, Mexico, Colombia and Chile that made purchases in the last 12 months, question asked “What payment method(s) do you prefer to use for online shopping on international websites?“; the survey date was not revealed by the source Source: EBANX, December 2020 250 “Cash” was the most common payment method used in the past month in Colombia in both 2019 (80.5%) and 2020 (78.2%), despite the decline. Colombia: Top Payment Methods Used in the Past Month, in % of Colombian IBA Adults, 2019 & 2020

2019 2020

Cash 80.5% Cash 78.2%

Physical Debit/Credit/Prepaid Physical 66.6% 64.6% Cards Debit/Credit/Prepaid Cards Account Account 24.4% Debit/Transfer/Standing 59.4% Debit/Transfer/Standing Orders Orders

Virtual Card 13.0% Virtual Card 29.7%

Paper-Based Means of Paper-Based Means of Payment (Checks/Promissory 1.7% Payment 2.5% Notes) (Checks/Promissory Notes) 0.7% Cryptocurrencies 1.2% Cryptocurrencies

0% 50% 100% 0% 50% 100% in % of Colombian IBA Adults in % of Colombian IBA Adults

Survey: based on a survey of 400 Colombian IBA (Internet-using and banked) adults, survey date was not revealed by the source Source: Minsait Payments, Afi, October 2020 251 The most popular online payment method for cross-border shopping in Chile was “Credit Card” (80%) in 2020, followed by “Debit Card” (38%). Chile: Top Payment Methods Preferred For Online Shopping on International Websites, in % of Cross-Border Consumers, 2020

Credit Card 80%

Debit Card 38%

Bank Transfer 10%

Prepaid Cards 10%

Digital Wallet 8%

Servipag 7%

Mileage Program 5%

Online Debit 3%

Others 6%

0% 20% 40% 60% 80% 100% in % of Cross-Border Consumers Note: does not add up to 100% due to multiple answers possible Definition: Servipag – a company specializing in transactions and payments Survey: based on a survey of 3,280 Latin American cross-border consumers mainly in Brazil, Mexico, Colombia and Chile that made purchases in the last 12 months, question asked “What payment method(s) do you prefer to use for online shopping on international websites?“; the survey date was not revealed by the source Source: EBANX, December 2020 252 Despite the decline in cards usage from 87% in 2019 to 83% in 2020, these still remained a leading payment method in Chile. Chile: Top Payment Methods Used in the Past Month, in % of Chilean IBA Adults, 2019 & 2020

2019 2020

Physical Physical Debit/Credit/Prepaid Debit/Credit/Prepaid Cards 87.0% 83.3% Cards Account Cash 77.8% Debit/Transfer/Standing 76.1% Orders Account Debit/Transfer/Standing 46.4% Cash 69.8% Orders Paper-Based Means of Payment 9.7% Virtual Card 20.2% (Checks/Promissory Notes) Paper-Based Means of Virtual Card 9.2% Payment 3.0% (Checks/Promissory…

Cryptocurrencies Cryptocurrencies 0.2% 0.5%

0% 25% 50% 75% 100% 0% 20% 40% 60% 80% 100% in % of Chilean IBA Adults in % of Chilean IBA Adults

Survey: based on a survey of 400 Chilean IBA (Internet-using and banked) adults, survey date was not revealed by the source Source: Minsait Payments, Afi, October 2020 253 “Cash” was the most used payment method in the past month among surveyed IBA in Peru in both 2019 and 2020. Peru: Top Payment Methods Used in the Past Month, in % of Peruvian IBA Adults, 2019 & 2020

2019 2020

Cash 76.6% Cash 73.6%

Physical Debit/Credit/Prepaid Physical 73.1% Cards Debit/Credit/Prepaid 69.2% Cards Account Account Debit/Transfer/Standing 36.7% Debit/Transfer/Stand 63.2% Orders ing Orders

Virtual Card 7.5% Virtual Card 22.6%

Paper-Based Means Cryptocurrencies 1.5% of Payment 2.7% (Checks/Promisso… Paper-Based Means of Payment 1.2% Cryptocurrencies 0.7% (Checks/Promissory Notes)

0% 25% 50% 75% 100% 0% 20% 40% 60% 80% 100% in % of Peruvian IBA Adults in % of Peruvian IBA Adults

Survey: based on a survey of 400 Peruvian IBA (Internet-using and banked) adults, survey date was not revealed by the source Source: Minsait Payments, Afi, October 2020 254 1. Management 20 – 26 4. Europe 104 – 192 5. North America 193 – 237 Summary 4.1. Regional 104 – 115 5.1. Regional 193 – 195 2. Global Developments 27 – 43 5.2. United States 196 – 228 4.2. Advanced Markets 116 – 180 5.3. Canada 229 – 237 4.2.1. UK 116 – 127 3. Asia-Pacific 44 – 103 4.2.2. Germany 128 – 142 6. Latin America 238 – 254 4.2.3. France 143 – 146 3.1. Regional 44 – 49 4.2.4. Spain 147 – 149 6.1. Regional 238 – 241 4.2.5. Italy 150 – 152 3.2. Advanced Markets 50 – 79 6.2. Brazil 242 – 246 4.2.6. Netherlands 153 – 155 3.2.1. Japan 50 – 50 6.3. Mexico 247 – 247 4.2.7. Switzerland 156 – 159 3.2.2. South Korea 60 – 63 6.4. Argentina 248 – 249 4.2.8. Sweden 160 – 162 3.2.3. Australia 64 – 71 6.5. Colombia 250 – 251 4.2.9. Belgium 163 – 165 3.2.4. Singapore 72 – 78 6.6. Chile 252 – 253 4.2.10. Norway 166 – 168 6.7. Peru 254 – 254 4.2.11. Denmark 169 – 171 3.3. Emerging Markets 79 – 103 4.2.12. Finland 172 – 174 3.3.1. China 79 – 82 7. Middle East & Africa 255 – 257 4.2.13. Austria 175 – 180 3.3.2. Taiwan 83 – 86

4.3.5. Bulgaria 191 – 192

255 Consumers’ payment behavior in MENA region considerably shifted after the onset of COVID-19, with over 60% of the surveyed claiming to avoid businesses that do not accept electronic payments, as of 2021. Middle East & Africa: COVID-19 Impact on Online & Mobile Payment, July 2021  The year 2020 impacted the Middle Eastern and African payment industry as well as other regions in the world prompting noticeable changes in shopping and payments behavior. Namely, after the onset of the pandemic, consumers started shifting their habits towards contactless or electronic payments and online shopping. Moreover, over 60% of the consumers surveyed in MENA claimed to avoid businesses that do not accept electronic payments.  Various reasons impacted consumers’ changed behavior, as for example, in UAE the significant part of consumers (73%) opted for online payments because they believed these helped them save money. Whereas, in Saudi Arabia, 94% of consumers during the post-COVID-19 times in 2021 were ready to use emerging payments such as biometrics, digital wallets, transfers, currencies, QR code or contactless payments.  In some countries, the behavior shifted towards mobile payments, such as in Jordan, an upward trend of transactions via a mobile payment system was seen over the year of 2020, from 350,000 transactions in January 2020 to 1.31 million in December 2020, with the spike occurring in September 2020 at almost 2 million (1.89 million). As well as in Jordan, mobile payments were common in Kenya. Namely, the number of accounts increased over the last 5 years considerably, from 28.6 million in 2015 , reaching 67.1 million, as of April 2021.  Whereas in South Africa, although there was an increase in the card payments value projected to reach ZAR 1.78 trillion (EUR 0.10 billion) in 2024, the growth rate was expected to drop considerably from 11.7% in 2019 to 3.7% in 2020 and then despite the slight predicted rise, the rate was expected to slowly fall over the years.  Egypt also saw a growth in popularity of cards, with the volume of electronic payment cards increasing at CAGR 18% from December 2017 to December 2020, reaching almost 45 million cards.  In Nigeria, the number of total e-payment transactions surpassed all other types of payments, reaching 5.1 billion in volume and NGN 783.2 trillion (EUR 1.7 trillion) in value, as of August 2020.  With regard to Morocco, the preference in the country was mostly for local cards to make online payments, with the value of such payments increasing from MAD 3.2 billion (EUR 0.3 billion) in the first half of 2019 to MAD 4.1 billion (EUR 0.4 billion) in the first 9 months of 2020. While the value of online payments via a foreign card experienced a drop over the same period from MAD 287.6 million (EUR 27.6 million) in H1 2019 to MAD 225.8 million (EUR 21 million) in the first 9 months of 2020. Note: the exchange rate applied in the action title is the average rate for 12 months to December 2020: ZAR 1 = EUR 0.053535; MAD 1 = EUR 0.092909; NGN 1 = EUR 0.00216 Source: The Harris Poll, Mastercard, May 2021; Central Bank of Jordan, 2020; GlobalData, June 2021; CMI, September 2020; Central Bank of Nigeria, 2020; The Central Bank of Egypt cited by Amwal Al Ghad, May 2021; Central Bank of Kenya, 2020,2021 256 In the Middle East, as of December 2020, BNPL startup Tabby raised the highest funding amount of USD 32 mil., followed by Tamara (USD 8 mil.) Middle East: Top 5 BNPL Startups, by Funding Amount, incl. Postpay, Tabby, and Tamara, December 2020

Tabby 32.0

Tamara 8.0

Postpay 5.5

Shahry 0.7

Spotii 0.5

0 10 20 30 40

in USD million

Note: Tabby, Postpay, and Spotii were launched in the UAE, and Tamara and Shahry in Egypt Source: Wamda, December 2020

257 258