Ireland The location of choice for International Payments firms

September 2012a

Why Ireland?

1) Why Ireland?

2) Strong portfolio of International Financial Services firms

3) Ireland – a global cluster for Software & ICT

4) Convergence & Emergence of Financial Technology

5) Multinational & Indigenous business environment

6) Financial Regulatory Environment

7) Irish Research Institutions in Payments Technology

8) IDA & Government support for companies

Software & ICTIndustry in Ireland

800+ software firms

24,000+ employees

€25 billion revenue

10% of Ireland’s GDP

#2 largest exporter of software in the world

8 of the top 10 ICT

companies in the world

Operations in Ireland

• Sales & Tech Support• R&D / Software Eng• EMEA Inside Sales• EMEA HQ

• Product Localisation• Datacentre & Cloud services• Semiconductor

manuf.

Financial TechnologyConvergence & Emergence

Online/Mobile Banking

Risk Modelling, Management &

Compliance

Security & Transparency

Data & Predictive Analysis / Business

Intelligence

Automation

E-Payments

Financial Services Cluster

Software / ICT Cluster

High-Growth Payments Sector in IrelandMNC’s & Indigenous

Indigenous30 companies

c.1,600 employed(€225m in exports)

Multinationals12 companies

c.3,700 employed

Recent Irish & MultinationalPartnerships in Payments

• AIB Merchant Services is a joint-venture with First Data

• In March 2012, won 2 awards at European Merchant Payment & Ecosystem Conference (awards for Innovation & Information)

• Integral provides transaction processing & switching

services to SME’s using electronic POS devices. • Processed 87m transactions in 2011 (€5 billion)• April 2012 – Integral acquired by Sage and

rebranded “Sage Pay”

• No.1 Currency is a leading UK corporate payments & Bureau de Change business based in Edinburgh• Fexco announced acquisition in February 2012• Fexco is a global leader in Dynamic Currency Conversion (DCC), corporate payments, global treasury solutions

• MasterCard acquired Orbiscom in April 2009• February 2011 – European operations and customer

service HQ announced• Ireland hosts MasterCard’s “Global Innovation

Centre”

Financial Regulation in Ireland......serving the payments market of Europe

Regulatory Authorisation of your entity can be achieved in Ireland

(10 Payments entities currently regulated)

EU DirectivesIreland is signatory to the primary European Commission Payments Directives:

• Payment Services Directive (PSD)• E-Money Directive

EU InitiativesIreland is a member of the Single Euro Payment Area (SEPA)• Driving the conformity of payments across the Eurozone • Comprised of key agencies from each Eurozone country

Regulatory Authorisation Process

Registration Process is “practical, collaborative, and business friendly”

Preliminary Submission

Preliminary Meeting

Application Proposal

Set out Initial Proposal - Legal entity, management & auditing structure, transaction flow & processes etc.

Collaborative discussion on submission to define a ‘road-map’ for application

Final Submission incorporating new structures / changes as discussed at preliminary meeting

Review & Authorisation

Initial MeetingWelcome & initial “meet & greet”.Discussion on business plan & regulation process

Central Bank processes application in detail and works with company to grant authorisation

Distributed access control, autonomic security trust, security analysis & security risk management

Research into all aspects of distributed computing extending from theoretical foundations to system engineering issues. Expertise in the areas of ubiquitous computing, mobile computing and software engineering.

IT Security & Cryptography

Software & Technology

Optimisation

Network Analysis & Data

Analytics

Cybercrime & Fraud Analysis

Illegal distribution of software, abuses of multiplayer online gaming, mobile forensics

Irish Research Institutions in Payments Technology

Research Focus Research StrandsResearch Centres

Research in coding theory and cryptography, discrete mathematics, algebra and number theory

Analysis & visualisation of graphs and social / biological networks. Matrix analysis techniques, information flow monitoring, discovering network structure

Development of more reliable & secure software, encompassing software code refinement, verification and automatic program construction

Centre for Cybercrime Investigation

Clique ResearchCluster

Computer Science Centre

Dependable Systems Group

Identity based encryption & signature schemes, cryptanalysis & biometric cryptography, smart card security

Computer Security & Cryptography Group

Fundamental & applied research in IT security for data communication networks, authentication & access control schemes, formal verification of security protocols using steganography & information hiding

Data-Comm SecurityLaboratory

Dependable Systems Group

How IDA Ireland can help…

1) R&D Grant Aid (c.10 - 20%)

2) R&D Tax Credit (25%)

3) Assistance with VISA’s / Work Permits

4) Employment Grant Aid

1) Property & Office Solutions

2) Introductions to Universities & Research Centres

3) Introduction to peers

4) Continuous "After Care” support

International & Irish PaymentsCompany Profiles in Ireland

• MasterCard

• PayPal

• Elavon

• Chase Paymentech

• Irish company profiles

in Ireland

Global Centre of Excellence for Customer Experience, Dublin• Focuses on developing product, process,

people and technology solutions to – • Improve customer experience• Drive increased revenues for PayPal

worldwide

• As a result of success of this Centre to date, a number of global roles are now located in Ireland including –

• Global Head of Customer Support• Global Head of Process Excellence• Global Head of Training

• In 2009, PayPal expanded into a new, larger facility in Dublin

First established in Ireland2003 Global Centre of

Excellence set up2009 c.2,400 employed Today

PayPal European Operational Headquarters, Blanchardstown, Dublin• PayPal’s first entity outside of The US

• Hosts PayPal’s European customer service, risk & fraud prevention, merchant services and process excellence team.

• Over 2,400 native European speakers employed

• Young and educated workforce – average age of 27 years

• Over 40 different nationalities represented

Ireland Benefits PayPal:• Quick access to operational & multilingual

professionals• Convenient access to The EU & The US• Cost-effective labour

in Ireland

MasterCard Global Innovation Centre, Sandyford, Dublin

• Comprises 2 technology development units: 1) MasterCard Labs (the company’s R&D arm)

2) Java Centre of Excellence

• The Global Innovation Centre will employ 200 highly skilled software & technology developers by 2014

• 1 of only 3 MasterCard Labs globally

• MasterCard’s only Java Centre of Excellence

Java Centre of Excellence

• MasterCard Labs chose Ireland to house the group’s only Java Centre of Excellence, expanding on its existing capability which developed “MasterCard InControl”

• Highly skilled employees, including: 1) Java.net developers2) Mobile App developers3) QA Engineers4) Implementation engineers

• Responsible for design & upgrade of Apps and solutions for existing payments platforms, as well as Risk & Fraud functions

Why Ireland benefits MasterCard

• Access to highly skilled, cost-effective software developers• Convenient access to MasterCard HQ in New York• Access to and understanding of European payments market, essential

for deployment of payment solutions & Apps in Europe• Building on existing partnership with indigenous company in the

payments space

1998 2009 Today

Orbiscom founded, providing mainly Card-Not-Present solutions. Employed 36

After designing “MasterCard InContol” as a joint venture in 2007, MasterCard acquires Orbiscom

MasterCard Labs establish Global Innovation Centre in Dublin, growing to 200 people

in Ireland

“With Elavon’s business constantly evolving in this competitive market, now is the time to invest in our skilled professionals who provide critical infrastructure support for our European operations from our Arklow location,” Simon Haslam, President of International Markets

Elavon Merchant ServicesArklow, Co. Wicklow

• Customer support• Telesales• Fraud Analysis & Chargeback• Payment Processing• Product development• Accounts (Merchant

Reimbursement)• Data Centre operations

400 staff in Ireland – Supporting European-wide

operations, using multi-currency, multi-lingual

platform

Elavon Financial ServicesLoughlinstown, Dublin

• EMEA HQ for US Bancorp• Provides the banking

function / partnership for Elavon in Europe

• Regulated credit institution by the Central Bank of Ireland

2000 2004 Today

US Bancorp enters joint venture with Bank of Ireland to create Euroconex. Operations in Dublin & Arklow

US Bancorp buys out EuroConex, and rebrands as Elavon. Retains Dublin & Arklow facilities

Elavon employs 350 people in Ireland, through a variety of business lines

Elavon is a wholly-owned subsidiary, providing payments processing services to financial institutions & merchants

in Ireland

c. 30 staff

“We do not consider the launch of this new European headquarters in Dublin as the start of operations here, but as a major milestone in our global strategy to expand internationally and support the growth of our US based merchant customers in Europe… Dublin will also be a platform for developing into Eastern Europe and the Asian Pacific markets.“ Shane Fitzpatrick, MD

Activities: • Sales & marketing• Account Management• R&D (new payment

methods for EMEA clients)

• Operational support

Ireland’s strategic location enables Chase Paymentech to support 24 hour markets between East and West.

Dublin is the Group’s

EMEA HQ

Chase Paymentech processes the merchant side of cheque and credit, debit, and pre-paid card payments

1997 2004 Today

Began serving the European market

Consolidated European operations, creating a European HQ in Dublin

Management centre for European operations, and regulated through Europe by the Central Bank of Ireland

Indigenous Payments Sector in Ireland

• Competitive cluster: Competitive cluster of 25 indigenous companies in the payments sector exporting c. €225m in 2010 and employing c.1,600 people.

• Irish clients winning key accounts with: Hertz (Monex), HBOS (Omnipay), BMW Sauber (TaxBack), Tommy Hilfiger (Fintrax), bmibaby (Continuum Commerce), Eastern Airways (Realex)

• Strength of capability within Ireland: Ireland has strong capability in particular in Dynamic Currency Conversion (DCC), PCI compliance, prepaid cards, payment processing platforms

• Strong Ecosystem of overseas owned companies based in Ireland: Paypal, Chase Paymentech, Mastercard, Elavon Financial Services, ACI Payment Systems, Vesta Payment Solutions active in Ireland

Irish Payments Companies (1)

Irish Payments Companies (2)

THANK YOU

For more information please see our website

www.idaireland.ie

Or Contact

International Financial Services Division

Telephone: +353 (0)1 6034000