Barclays Plc · LSE:BARC
Barclays — Emerging Payments Forum (March 2011)
14 slides from Barclays's conference presentation, Mar 29, 2011
Slide 1: Emerging Payments Forum: Barclaycard Perspective
Emerging Payments Forum Barclaycard Perspective Philip McHugh, Chief Finance Officer - Barclaycard 29th March 2011
Slide 2: Presentation Content
Presentation Content • Overview of Barclaycard • Emerging Trends • Innovation in the Digital Payments Space
Slide 3: Barclaycard is an important part of Barclays Global Retail Banking (GRB)
Barclaycard is an important part of Barclays Global Retail Banking (GRB) Barclays 2010 PBT Composition GRB 2010 PBT by business (£m) (£m) 6,065 GRB UK 989 54% 1,829 Retail Banking (30%) Barclaycard 791 43% Western Europe -139 -8% Retail Banking Barclays Africa 188 10% GRB 1,829
Slide 4: Barclaycard has innovated and diversified from its roots as a UK consumer card provider
Barclaycard has innovated and diversified from its roots as a UK consumer card provider History of Firsts • 1966: First UK credit card & acquiring network • 1986: First UK credit card loyalty scheme • 1995: First UK card company online • 2007: First contactless card in UK Track Record of Diversifica
Slide 5: Barclaycard today is a broad international payments business
Barclaycard today is a broad international payments business… Business Payment Barclaycard Total Revenue ’10: Products £4,024m • Payment Acceptance • Commercial Payments • Barclays Partner Finance 21% UK Consumer 42% Credit Cards Position • United Kingdom: #1 International Consumer Credit Cards Posi
Slide 6: …with strong track record of returns through the cycle
…with strong track record of returns through the cycle Barclaycard 2006-2010 PBT (£m) CAGR +10.9% 766 791 727 603 522 PBT 2006 2007 2008 2009 2010 Return on Risk- 2.1% 2.2% 2.6% 1.8% 1.9% Weighted Assets
Slide 7: Pressures on consumer credit card issuing are accelerating industry change
Pressures on consumer credit card issuing are accelerating industry change Pressures Industry Impacts 1 • Limited growth in developed economies Market Maturity • Consumers de-leveraging 2 • US Credit Card Act Regulatory Changes • European Consumer Credit Directive 3 • Mobile carriers New Competition
Slide 8: Barclaycard growth strategy
Barclaycard growth strategy GRB Vision : LIVES MADE MUCH EASIER Leading positions in existing markets Product diversification beyond consumer credit cards Leadership in payments innovation Enabled by rigorous risk and cost management
Slide 9: Barclaycard is innovating in the emerging digital payments space
Barclaycard is innovating in the emerging digital payments space • Consumer behaviour and technology changing rapidly • Trends will differ by market Leadership in • Uncertain which payments models will win innovation • Barclaycard has key competitive advantages • Barclaycard is committed to maintain
Slide 10: Creating the UK market in contactless
Creating the UK market in contactless • 11 million Barclaycard contactless debit launched and credit cards contactless in • Transaction 2007 volumes more than doubling in the last • Part of the emerging payments year infrastructure for proximity and NFC • Major outlets • Position in issuing, acquiri
Slide 11: Increasing customer spend through loyalty
Increasing customer spend through loyalty • 1 million Barclaycard customers have launched earned >£3.4m in Freedom loyalty Reward Money scheme in 2010 • 4 million transactions at • Innovative real-time reward proposition, participating earn and redeem at point of sale retailers… • Position in issuin
Slide 12: Shaping the future of mobile payments
Shaping the future of mobile payments Barclaycard has partnerships • In UK, preparing to with major launch mobile mobile operators contactless in UK and US payments using NFC • In UK, strategic partnership with • In US, planning to Orange since 2009 introduce service • In US, partnering with ISIS jo
Slide 13: Barclaycard will drive growth from a strong base
Barclaycard will drive growth from a strong base Customers will determine Barclaycard is success in the well positioned digital payments space
Slide 14: Emerging Payments Forum: Barclaycard Perspective
Emerging Payments Forum Barclaycard Perspective Philip McHugh, Chief Finance Officer - Barclaycard 29th March 2011