Market challenges facing an acquirer in the European market – a personal view

Geoffrey Barraclough

Head of Propositions

EVO Payments International

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$82m (between June and September 2017)

EVO Payments International at a glance

Highly Confidential 3

• Who we serve • How we serve

• Who we are

Headquartered in Atlanta, GA

16 officesacross 10 countries

More than 2,000team members around the world

Founded

1989

4-time recipient of best international card acquiring service provider

More than

450,000merchant businesses worldwide

Over 50markets served

$100 billionannual processing volume worldwide

130+transaction currencies

9market leadingbank partners

Market PolandCzech

RepublicMexico Spain Ireland Germany UK

EVO market rank

Date of first entry

#1

Dec 2013

#5

Feb 2016

#2

Aug 2015

#4

Oct 2013

#4

Sep 2014

#5

June 2013 Oct 015

Customer focus

All POS & eCom

SmallPOS & eCom

AllPOS & eCom

AllPOS & eCom

SmallPOS & eCom

Large x-borderPOS & eCom

SmallPOS & eCom

Alliance partner

No of POS terminals

EVO Payments International at a glance

12,000165,000 10,000 12,50070,000100,000 10,000

EVO Growth Strategy

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New geographies New customers Increase share of wallet

Single set of APIs

Modern sales and marketing

Boarding Processing Service

Global and local

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$82m (between June and September 2017)

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$82m on product development$67m on sales/marketing

(in Q3 2017)

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Because the purpose of business is to create a customer, the business enterprise has two - and only two - basic functions: marketing and innovation

• Peter Drucker

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My questions for the European merchant acquiring industry

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Q: What is the role of brand in merchant acquiring?

B2B branding has changed

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Necessary evolution of merchant acquirer brands

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Technical FunctionalRemoteUndifferentiated

TomorrowToday

HelpfulSpeedyInnovative Distinct

Why brand is important

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Q3: How do we balance sales and marketing?

Good marketing delivers inbound sales

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Q: How do we manage the move from discrete business

process to fully integrated ecosystem?

Orchestrating the ecosystem

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Acquirer alongside Acquirer inside Acquirer leading

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Q: Are ISVs the new ISOs?

EVO helping ISVs

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Q: What role do products play in the merchant acquiring

portfolio?

What role do products play in the merchant acquiring portfolio today?

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Role Definition Merchant services?

Magnet Attracts new customers eCommerce

Anchor Keeps customers Terminal rental & integration

Profit engine Makes the money Merchant account

Spice Brings excitement to the brand New payment types

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Role Definition Merchant services?

Magnet Attracts new customers Ecosystem, fast set up

Anchor Keeps customers Ecosystem, eCommerce

Profit engine Makes the money Merchant account

Spice Brings excitement to the brand New payment types, marketplaces, analytics

What role do products play in the merchant acquiring portfolio tomorrow?

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Q: Are we in financial services or technology services?

Three strategic options for acquirers

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Customer intimacy (brand)

Scale Vertical focus

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$82m on product development$67m on sales/marketing

(in Q3 2017)