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1. Banking in an Open World
The Power Of Tokens
November 24th, 2020
Henri Dewaerheijd, Country Manager BeLux
Mastercard

2. ©2019Mastercard.ProprietaryandConfidential
Data is the new Air

3. ©2020Mastercard.ProprietaryandConfidential
3 NOVEMBER 4, 2020
An Open Infrastructure will accelerate innovation in Finance

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API infrastructure has become the
standard to exchange data between
parties
Value can be created with reasonable
to minimal integration
While Open API are geared towards a
mass consumption Closed API are
tailored to specific needs or a well
defined ecosystem
An Open Infrastructure is not always a needed to bring
innovation to ecosystems

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Mastercard leverages Closed APIs to bring value to Commerce
The foundation:
Pay and getting
paid

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Mastercard leverages Closed APIs to bring value to Commerce
Where we
innovate:
Leverage data to
create value

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7 FEBRUARY 26, 2020
Accelerating the exchange of
data between financial
institutions and merchants

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8 FEBRUARY 26, 2020
Digitizing cards with
Tokens

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MERCHANT PAIN POINTS
72%
of digital shopping
carts in Europe are
abandoned at
checkout.
MDES FOR MERCHANTS 9
Merchants need to balance between good consumer experience
and security to maximize successful transaction numbers
Good consumer
experience
One-click card on
file solutions
Tokens for Merchants
Issuer authentication
for each transaction
Security

10. ©2019Mastercard.ProprietaryandConfidential
TOKENISATION EXPLAINED
Original Card Data
Traditional 16 digit card
number
5XXX-XXX-XXX-1234
Assigned to the Merchant
Traditional 16 digit card
number
5XXX-XXX-XXX-5678
Secured by Mastercard
Tokenisation is the process by which the original card number is replaced with a surrogate value called a “token.”
TOKEN
TOKEN
Digitizing cards with tokens

11. ©2019Mastercard.ProprietaryandConfidential
FROM BANKS TO MERCHANTS
Tokens bring
convenience
and security
Maestro

12. ©2019Mastercard.ProprietaryandConfidential
Tokens bring
convenience
and security
FROM BANKS TO MERCHANTS
XXXX
XXXX
XXXX
XXXX
Real card art
design is
displayed at
checkout
1
Maestro

13. ©2019Mastercard.ProprietaryandConfidential
Tokens bring
convenience
and security
FROM BANKS TO MERCHANTS
XXXX
XXXX
XXXX
XXXX
Card
numbers are
replaced
with tokens
2
Maestro

14. ©2019Mastercard.ProprietaryandConfidential
Tokens bring
convenience
and security
FROM BANKS TO MERCHANTS
XXXX
XXXX
XXXX
XXXX
Expired cards
are
automatically
updated
3
Maestro

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15 FEBRUARY 26, 2020
Enriched transactions
for banking statements

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Making statements clear
and transparent for
consumers
Enriched Transaction
Data
FROM MERCHANTS TO BANKS

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17 FEBRUARY 26, 2020
Enriched transactions
for banking statements

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With EMV 3DS, the
merchant can share up
10X more data,
enabling the issuer to
make better decision to
approve the
transaction
FROM MERCHANTS TO BANKS
E-commerce authentication flow exchanges data to increase
approval rates

19. ©2020Mastercard.ProprietaryandConfidential
With EMV 3DS, the
merchant can share up
10X more data,
enabling the issuer to
make better decision to
approve the
transaction
FROM MERCHANTS TO BANKS
E-commerce authentication flow exchanges data to increase
approval rates
Merchants influence
banks to approve
transactions: shipping
and billing address is
the same, known IP
address, …

20. ©2020Mastercard.ProprietaryandConfidential
FROM MERCHANTS TO BANKS
92
87
93
Oct-20Apr-20 Oct-20
3DS 1.0 EMV 3DS
+1%
Roughly 6 months time
the approval rate of
EMV 3DS is already
1ppt better than the
prior version
3DS Authorization Rates in Europe
And it works …

21. ©2020Mastercard.ProprietaryandConfidential
21 NOVEMBER 4, 2020
What comes next?

22. ©2020Mastercard.ProprietaryandConfidential
Financial Institutions
Digital Wallets
Internet of Things
Merchants
Card on file
With tokenization, the possibilities are infinite
TOKEN

24. ©2020Mastercard.ProprietaryandConfidential
All devices become commerce devices, with voice becoming
a key element
« Hey TV, where can I buy this t-shirt from the
Mad Men series? »
« Hey Clara, I’m paying you back the restaurant
through our messaging app »
« BMW, allow payment for filling up the tank at
the gas station»
« Alexa, buy two tickets for the next concert of
Camila Cabello »

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25

26. Thank you for your
attention
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