Atos - Registration Document 2016

B Atos positioning and strategy B.1 Market trends

Payment

B.1.7

The trend towards non-cash payment instruments continues both in the retail and wholesale payment sector, as the result of a complex interaction of many forces including:

Consumer expectations and behavior

multiple locations, including on the go or in a store, and shares their experience with their networks. The always-on, Consumers go online multiple times a day and do so from consumer in the developed world owns and uses several connected devices and is “super social” (i.e. Facebook). has driven demanding expectation in the way they interact with both financial institutions and merchants. Today, the average The way consumers live, enabled by certain key technologies, always-connected nature of mobile and other devices is creating new opportunities that allow traditional distributors, frequency of their interactions and increase sales and payment activity. manufacturers and new digital businesses to connect with their customers and their network wherever they are, increase the significantly in recent years, and this growth is expected to accelerate as electronic transactions increasingly displace cash Consequently, non-cash payment transactions have grown through to 2025, reaching 238 billion transactions. of 6% over the last 10 years. A.T. Kearney also estimates that this growth rate will accelerate to 7% per year from 2020 and checks. According to A.T. Kearney, the number of non-cash transactions in the European Union has grown at an annual rate 2016”, “growth in contactless cards in Europe spiked between towards electronic means replacing cash for low value transactions. According to the BCG report “Global Payments Also, the rise in contactless payments is a significant move environment. This includes: New technologies have a fundamental role in enabling change in the payment environment and the wider consumer engagement for identification, to open a hotel door, to receive contextual messages/notifications or to easily pay services or goods; smart watches, which will be a one-stop-shop handy device • the development of blockchain technologies for payments; • and the full redesigning of banks’ existing payment platforms, with • the development of integrated end-to-end platforms that Technology

2013 and 2015, growing from less than 2% of card transactions at the POS to nearly 20%”. The value of mobile payment transactions is similarly expected to see strong growth, as mobile payments cover both remote use cases (paying on a web shop or merchant mobile app) and proximity use cases (paying in a physical store). Last, Immediate payments (also referred to as instant or real-time payments) have incredible potential for both retail and financial institutions in its efforts to build a pan-European instant payment platform. EBA Clearing, the bank-owned pan-European clearing house, recently announced it had secured the support of nearly 40 increasing. In Europe, the European Payment Council published its SEPA Instant Credit Transfer (SCT Inst) scheme rulebook and ecosystem will be significant. Throughout the world, the number of real-time payment initiatives of one form or another is corporate payments and the long-term impact on the payment According to the 2016 World Payment report, Immediate Payments have many advantages over cash and cheques and reach, in particular ubiquity, interoperability, enhanced user experience and price. driven by mobile applications, they also have the potential to challenge the debit card. The key success factors are all within are thus ideally suited to replace these instruments. However,

providers with the new platforms to offer more and improved services at lower costs and across geographies. expected to enable new services, speed time to market, and create new economies of scale that allow payment service functions, with the ability to share payment information throughout the system. These integrated new platforms are cover the full range of payment processing and related

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