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EFTA01382673

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S- I/A Table of Contents 11. The merchant acquirer. or the merchant acquirer's processor. receives the batch, notes the final amounts due for settlement and mutes the batch of approved authorizations to each applicable payment network: 12. Each payment network sends the batch of approval authorizations to the applicable card issuing bank, or its issuer processor, which posts the transaction to the consumer's statement; 13. Typically within 48 hours, the payment network calculates net settlement positions for the merchant acquirer and the card issuing bank, sends advisements to the merchant acquirer and card issuing bank and submits a fund transfer order to a settlement bank; and 14. The settlement bank facilitates the exchange of funds between the merchant acquirer and the card issuing bank: and the merchant acquirer transfers the funds to the business owner's account. Key Trends Our industry is impacted by several significant trends that are driving growth and changing the way commerce is being conducted and facilitated around the world. These trends include: • Shift to Electronic Commerce - Conthmers, businesses, financial institutions, and government entities around the world are continuing to shift their commercial activities and transactions to electronic forms. According to The Nilson Report dated December 2014, in the United States from 2013 to 2018. cash and check purchase volumes are projected to decline by 34% and 46%. rethectively, while credit and debit card purchase volumes are projected to increase by 65% and 49%. respectively. • Migration to Online Channels — Over the past 20 years. the combination of the growth of the Internet. the decreasing costs of technology used to access the Internet. and the increasing adoption of electronic payments has driven the migration of commerce to online channels such as eCominerce and mobile commerce. We believe this migration will continue as market demographics shift to newer generations o

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