About the CPPO. The CPPO is a not-for-profit organization and the collective voice of the open-loop prepaid payments industry in Canada.

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2 About the CPPO The CPPO is a not-for-profit organization and the collective voice of the open-loop prepaid payments industry in Canada. As the voice of the rapidly growing open loop prepaid payments industry in Canada, the CPPO is focused on awareness and education about these popular products. Members of the organization include major financial institutions, payment card networks, program managers and key vendors that support the growth of this industry.

3 CPPO Mission Open loop prepaid products are a valuable financial tool offering benefits to consumers, businesses and governments. Because of the growing popularity of open loop prepaid in Canada, and on a global scale, The CPPO was formed to foster a positive environment in which open loop prepaid payments can responsibly grow and flourish in Canada. Pay Before Pay Now Pay Later

4 CPPO Members CPPO MEMBERS CPPO SUPPORTERS

5 What is Open Loop Prepaid? Open loop prepaid cards provide consumers, businesses and governments with the efficiency, security and flexibility of electronic payments without involving credit The cards can be used anywhere the card network (American Express, MasterCard and Visa) is accepted, including online and around the world. The cards look and function like traditional credit and debit cards at the point-of-sale Cards offer the same fraud and loss protections offered by the card network

6 What is Open Loop Prepaid? Rapidly replacing cheques as a less expensive and more secure option Replaces a direct deposit or wire transfer, giving the end user quicker access and more flexibility to use the funds Cards can be a single load or reloadable. Reloadable cards require registration of personal information to comply with banking laws and regulations Fastest growing form of electronic payment in the United States

7 Why Open Loop Prepaid in Canada? Convenient for Consumers and Businesses Less expensive than paper. According to the Canadian government, cheques cost.82 cents to issue versus.13 cents for an electronic payment. Canadians embrace electronic payments with half of the payment transactions and 60% of the dollar value of payments in Canada made electronically. Canada must meet the needs of underbanked and address debt; prepaid offers set spending limits

8 Why Open Loop Prepaid in Canada? Fastest growing form of non-cash payment in the US and Canada is rapidly catching up Prepaid average transaction sizes skyrocketed to above $115B in 2011, from under $85B in Open loop prepaid cards payment volumes more than doubled since 2008, surpassing ABM volumes and reaching about half the volume of cheque payments.

9 Why Open Loop Prepaid in Canada? Canadians are looking for new ways to manage their finances to void debt, fees and interest. According to a recent survey by Leger 40% want a payment card with a set spending limit Less than one-third of Canadians set a budget, stick to a budget and one third have difficulty tracking their spending 82% of Canadians want a payment card where they would not be charged NSF or overdraft fees According to a recent survey by Leger, 55% of Canadian consumers would consider using an open loop prepaid card, after learning about the benefits.

10 Canadians Have High Levels of Awareness of and Satisfaction With Open Loop Prepaid Cards According to a recent Leger survey 6 in 10 Canadians are aware of reloadable open loop prepaid cards and 73% who have used the cards have expressed satisfaction. 55% of Canadian consumers would consider using an open loop prepaid card, after learning about the benefits.

11 Benefits of Open Loop Prepaid Cards Consumer Benefits Funds are immediately available Avoid costly overdraft and interest charges Financial inclusion Security and protections Good value Funds are universally acceptable Ease of use Business Benefits Cost effective versus cheques Improve efficiencies Streamline expenses tracking Reduce cost, hassle and potential for fraud with cheques An electronic payments for everyone despite banking status Flexible tool for various situations

12 Types of Open Loop Prepaid Cards General Purpose Reloadable Teen Card Payroll Corporate Disbursement Corporate Incentive Rebate/Promotional Card Government Disbursement Open Loop Gift Insurance/Disaster Relief Travel