ACI and Aite discuss results of a global study and share how current global and regional smartphone use is predicting the future shape of the mobile economy. Learn more: http://www.aciworldwide.com

1. The Global Rise of Smartphonatics:
Driving Mobile Payment and Banking
Adoption in the Americas, EMEA and
Asia-Pacific
Confidential
Michael Grillo Ron Shevlin
ACI Worldwide Aite Group
Senior Product Marketing Manager Research Analyst
USA USA

2. Agenda
Research Approach
The Global Rise of Smartphonatics – Americas
About ACI Worldwide
Questions & Answers
20 June, 2012 Confidential 2

3. Research Approach
20 June, 2012 Confidential 3

4. About Today’s Speaker
Ron Shevlin, Senior Analyst, Aite Group
rshevlin@aitegroup.com
1.617.338.6045
Specializing in
• Retail banking
• Customer and marketing analytics
• Loyalty management
• P2P lending
• Personal financial management
• Social computing
• Online banking
• Customer experience and consumer behavior
Aite Group (eye-tay) is an independent research
and advisory firm focused on business, technology
and regulatory issues and their impact on the
financial services industry.
20 June, 2012 Confidential 4

5. The Global Rise of the
Smartphonatics: Americas
20 June, 2012 Confidential 5

6. © Copyright 2012, Aite Group, LLCwww.aitegroup.com6
Mobile payment adoption
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
13%
15%
21%
21%
23%
28%
30%
30%
35%
37%
45%
45%
48%
64%
66%
France
Canada
Germany
Australia
U.K.
Italy
Sweden
U.S.
AVERAGE
Brazil
Singapore
U.A.E.
South Africa
India
China
Percentage of Consumers That Used Mobile Phone to
Make a Payment in the Last Six Months

7. © Copyright 2012, Aite Group, LLCwww.aitegroup.com7
Mobile payment importance
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
7%
9%
12%
16%
18%
21%
23%
28%
28%
39%
39%
42%
51%
65%
Canada
France
Germany
Sweden
U.K.
Australia
U.S.
Italy
Singapore
China
Brazil
U.A.E.
South Africa
India
Percentage of Consumers That Consider Mobile
Payments "Very Important" To Them

8. © Copyright 2012, Aite Group, LLCwww.aitegroup.com8
Mobile wallet interest
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
27%
35%
36%
38%
41%
41%
44%
67%
67%
71%
72%
75%
76%
81%
Canada
Australia
Sweden
U.K.
Germany
U.S.
France
U.A.E.
Singapore
South Africa
Italy
Brazil
China
India
Percentage of Consumers That Would Use Their Mobile
Phone Instead of Carrying Payment Cards

9. © Copyright 2012, Aite Group, LLCwww.aitegroup.com9
Global Smartphonatics
No Yes
Very
important
4%
24%
Somewhat
to not
important
41% 31%
Mobile wallet interest
Mobile
payment
importance
Smartphonatic
s
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

10. © Copyright 2012, Aite Group, LLCwww.aitegroup.com10
Smartphonatics by country

11. © Copyright 2012, Aite Group, LLCwww.aitegroup.com11
Are you a Smartphonatic?

12. © Copyright 2012, Aite Group, LLCwww.aitegroup.com12
Polling Question: Do you consider
yourself a Smartphonatic?

13. © Copyright 2012, Aite Group, LLCwww.aitegroup.com13
@jane r u going to drink your
OJ?
@jane r u going to drink your
OJ?

14. © Copyright 2012, Aite Group, LLCwww.aitegroup.com14
Theme
Smartphonatics will lead the demand for
mobile payments and commerce
in every country

15. © Copyright 2012, Aite Group, LLCwww.aitegroup.com15
Agenda
• Who are the Smartphonatics?
• What differentiates the Smartphonatics?
• What does the rise of Smartphonatics mean
to banks and retailers?

16. © Copyright 2012, Aite Group, LLCwww.aitegroup.com16
Smartphonatics in the U.S.
No Yes
Very
important
3%
20%
Somewhat
to not
important
56% 21%
Mobile wallet interest
Mobile
payment
importance
Smartphonatic
s
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

17. © Copyright 2012, Aite Group, LLCwww.aitegroup.com17
Smartphonatics in Brazil
No Yes
Very
important
10%
37%
Somewhat
to not
important
15% 38%
Mobile wallet interest
Mobile
payment
importance
Smartphonatic
s
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

18. © Copyright 2012, Aite Group, LLCwww.aitegroup.com18
Smartphonatics in Canada
No Yes
Very
important
12%
7%
Somewhat
to not
important
61% 21%
Mobile wallet interest
Mobile
payment
importance
Smartphonatic
s
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

19. © Copyright 2012, Aite Group, LLCwww.aitegroup.com19
Smartphonatics generational split
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
Percentage of Each Generation that are Smartphonatics
44%
46%
28%
13%
Gen Y
Gen X
Boomer
Senior
6%
12%
3%
5%
Gen Y
Gen X
Boomer
Senior
41%
21%
11%
6%
Gen Y
Gen X
Boomer
Senior
United States CanadaBrazil

20. © Copyright 2012, Aite Group, LLCwww.aitegroup.com20
Mobile payment and banking adoption
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
81% 84%
17%
27%
Has used mobile phone to make a
payment in the last six months
Has used mobile phone for
banking in the last six months
(Country: United States)
Smartphonatics Other consumers

21. © Copyright 2012, Aite Group, LLCwww.aitegroup.com21
Mobile payment and banking adoption
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
(Country: Brazil)
64%
73%
21%
32%
Has used mobile phone to make a
payment in the last six months
Has used mobile phone for
banking in the last six months
Smartphonatics Other consumers

22. © Copyright 2012, Aite Group, LLCwww.aitegroup.com22
Mobile payment and banking adoption
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
(Country: Canada)
58%
76%
12% 14%
Has used mobile phone to make a
payment in the last six months
Has used mobile phone for
banking in the last six months
Smartphonatics Other consumers

23. © Copyright 2012, Aite Group, LLCwww.aitegroup.com23
Smartphonatics (smart-fa-NAT-ics)
• How they pay

24. © Copyright 2012, Aite Group, LLCwww.aitegroup.com24
Use of cash
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
65%
13%
23%
46%
33%
21%
Less Same More
Q. How does your current use of cash compare to the
amount of cash you used three years ago?
(Country: United States)
Smartphonatics Other consumers

25. © Copyright 2012, Aite Group, LLCwww.aitegroup.com25
Mobile payment preferences
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
13% 12%
9%
0% 0.5% 0.5%
Low-value goods (e.g.,
coffee, snacks)
Higher-value goods Person-to-person
payments
Percentage of Consumers Who Prefer to Use Their
Mobile Device to Make the Following Types of Payments
(Country: United States)
Smartphonatics Other consumers

26. © Copyright 2012, Aite Group, LLCwww.aitegroup.com26
Mobile payment preferences
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
11%
6%
9%
2%
1%
2%
Low-value goods (e.g.,
coffee, snacks)
Higher-value goods Person-to-person
payments
Percentage of Consumers Who Prefer to Use Their
Mobile Device to Make the Following Types of Payments
(Country: Brazil)
Smartphonatics Other consumers

27. © Copyright 2012, Aite Group, LLCwww.aitegroup.com27
Mobile payment preferences
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
10%
2%
1% 0%
Low-value goods (e.g.,
coffee, snacks)
Higher-value goods Person-to-person
payments
Percentage of Consumers Who Prefer to Use Their
Mobile Device to Make the Following Types of Payments
(Country: Canada)
Smartphonatics Other consumers
26%
13%

28. © Copyright 2012, Aite Group, LLCwww.aitegroup.com28
Change in payment preferences
Q. Which payment method did you (do you) prefer when buying low value goods?
(Country: United States)
3 yrs ago Today
Cash 39% 29%
Debit card 34% 40%
Credit card 16% 16%
Check 5% 2%
Mobile phone 4% 13%
Prepaid card 2% 0%
3 yrs ago Today
61% 55%
21% 25%
15% 17%
2% 1%
0% 0%
1% 0%
Smartphonatics Other consumers
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

29. © Copyright 2012, Aite Group, LLCwww.aitegroup.com29
Change in payment preferences
Q. Which payment method did you (do you) prefer when buying low value goods?
(Country: Brazil)
3 yrs ago Today
Cash 45% 34%
Debit card 25% 39%
Credit card 10% 13%
Check 2% 0%
Mobile phone 14% 11%
Prepaid card 4% 4%
3 yrs ago Today
64% 58%
17% 29%
10% 11%
0% 0%
7% 2%
1% 1%
Smartphonatics Other consumers
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

30. © Copyright 2012, Aite Group, LLCwww.aitegroup.com30
Change in payment preferences
Q. Which payment method did you (do you) prefer when buying low value goods?
(Country: Canada)
3 yrs ago Today
Cash 37% 21%
Debit card 27% 36%
Credit card 23% 17%
Check 0% 0%
Mobile phone 14% 11%
Prepaid card 13% 26%
3 yrs ago Today
71% 67%
16% 17%
11% 12%
0% 0%
0% 2%
2% 1%
Smartphonatics Other consumers
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

31. © Copyright 2012, Aite Group, LLCwww.aitegroup.com31
Smartphonatics (smart-fa-NAT-ics)
• How they pay
• Mobile shopping preferences

32. © Copyright 2012, Aite Group, LLCwww.aitegroup.com32
Mobile researching capabilities
Smartphonatics
Other consumers
9%
10%
8%
17%
36%
40%
42%
46%
Research products online while in a store in
order to purchase from a different merchant
Research products online while in a store in
order to purchase in the store
Research products online while in a store in
order to purchase online
Research products online from home or work
Percentage of Consumers That Consider The Ability to do
The Following With a Mobile Device to be "Very Important"
Source: Aite Group survey of 1,115 US consumers, Q2 2012

33. © Copyright 2012, Aite Group, LLCwww.aitegroup.com33
Mobile shopping capabilities
28%
45%
57%
66%
68%
65%
61%
67%
60%
72%
82%
87%
89%
89%
89%
92%
Can connect to social networks
Is offered by my primary bank
Shows me product reviews
Is offered by a company I know and trust
Finds the lowest price for product(s) I want
Is offered by stores I most like to shop at
Provides relevant offers
Provides very deep discounts
Q. Which of the following mobile shopping capabilities are important to you?
Smartphonatics
Other consumers
Source: Aite Group survey of 1,115 US consumers, Q2 2012

34. © Copyright 2012, Aite Group, LLCwww.aitegroup.com34
Smartphonatics want offers from
banks
Source: Aite Group survey of 1,115 US consumers, Q2 2012
27%
36%
11%
34%
Other consumers Smartphonatics
Percentage of Consumers Interested in Receiving
Daily Deal Offers From Their Primary Bank
Very interested
Somewhat interested
38%
70%

35. © Copyright 2012, Aite Group, LLCwww.aitegroup.com35
Smartphonatics are daily deal buyers
3.3
$108
9.3
$203
Number
of
deals
purchased Total
dollar
amount
of
deals
purchased
2011
Daily
Deal
Activity
Other
consumers Smartphonatics
Source: Aite Group survey of 1,115 US consumers, Q2 2012

36. © Copyright 2012, Aite Group, LLCwww.aitegroup.com36
Smartphonatics (smart-fa-NAT-ics)
• How they pay
• Mobile shopping preferences
• Loyalty program impact

37. © Copyright 2012, Aite Group, LLCwww.aitegroup.com37
Loyalty program participation
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012
23%
31%
47%
27%
11%
26%
U.S. Brazil Canada
Smartphonatics Other consumers
Percentage of Consumers Who Belong to
Four or More Retailer Loyalty Programs

38. © Copyright 2012, Aite Group, LLCwww.aitegroup.com38
Smartphonatics on loyalty programs
50%
40%
22% 21%
"I always try to choose retailers
where I am a member of
the loyalty program"
"Most or all of the loyalty programs
I belong to deliver benefits that
are very important for me"
Percentage of Consumers Who Agree With the
Following Statements About Loyalty Programs
(Country: United States)
Smartphonatics Other consumers
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

39. © Copyright 2012, Aite Group, LLCwww.aitegroup.com39
Smartphonatics on loyalty programs
62%
38%
34%
27%
"I always try to choose retailers
where I am a member of
the loyalty program"
"Most or all of the loyalty programs
I belong to deliver benefits that
are very important for me"
Percentage of Consumers Who Agree With the
Following Statements About Loyalty Programs
(Country: Brazil)
Smartphonatics Other consumers
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

40. © Copyright 2012, Aite Group, LLCwww.aitegroup.com40
Smartphonatics on loyalty programs
56%
45%
19%
24%
"I always try to choose retailers
where I am a member of
the loyalty program"
"Most or all of the loyalty programs
I belong to deliver benefits that
are very important for me"
Percentage of Consumers Who Agree With the
Following Statements About Loyalty Programs
(Country: Canada)
Smartphonatics Other consumers
Source: ACI Worldwide study of 4,200 consumers in 14 countries, Q1 2012

41. © Copyright 2012, Aite Group, LLCwww.aitegroup.com41
Banks Smartphonatics

42. © Copyright 2012, Aite Group, LLCwww.aitegroup.com42
42

43. © Copyright 2012, Aite Group, LLCwww.aitegroup.com43
Smartphonatic loyalty to banks
Source: Aite Group survey of 1,115 US consumers, Q2 2012
9%
14%14%
26%
Grew relationship with primary
bank
Switched primary bank or
decreased relationship with
existing bank
2011 Bank Relationship Activity
Other consumers Smartphonatics

44. © Copyright 2012, Aite Group, LLCwww.aitegroup.com44
Theme
Smartphonatics will lead the demand for
mobile payments and commerce
in every country

45. © Copyright 2012, Aite Group, LLCwww.aitegroup.com45
What it means
• Smartphonatics % represents a country’s
evolution towards mobile payments/commerce
• Smartphonatics are the early adopters – and
demand drivers – for integrated mobile
banking/commerce/payment

46. © Copyright 2012, Aite Group, LLCwww.aitegroup.com46
The integrated mobile experience
What can I
buy?
How can I
pay for it?
What should
I buy?

47. © Copyright 2012, Aite Group, LLCwww.aitegroup.com47
What it means
• Smartphonatics % represents a country’s
evolution towards mobile payments/commerce
• Smartphonatics represent the early adopters –
and drivers of demand – for integrated mobile
banking/commerce/payment
• Smartphonatics will drive more integration and
collaboration between financial institutions and
retailers/merchants

48. Questions
20 June, 2012 Confidential 48

49. More Information
For information on
ACI’s mobile solutions
or to download a copy of the
Smartphonatics report, visit
www.aciworldwide.com/mobile
Thank you!
20 June, 2012 49Confidential