PayPal Presentation - Finance4SUB Week

HOW TO ACCEPT PAYMENTS IN

MINUTES AND HELP YOUR BUSINESS

GROW

Business Development

May 2012

FOUR FUTURE PAYMENT TRENDS

#Finance4SUB

1. CASH IS DYING

Understanding key ecommerce and payment trends #Finance4SUB

2. MOBILE PAYMENTS

4 Understanding key ecommerce and payment trends #Finance4SUB

3. MICRO PAYMENTS


4. BUSINESS PAYMENTS


NOT ALL METHODS ARE CREATED EQUAL

7 7

Small Large

Mo

de

rate

L

arg

e

PayPal

E-Bank Transfers

Mobile

Debit Cards Cash

Cheques Credit Cards

Usage Online

Wallets

Pre Paid

Utility Billing

Current user base

Po

ten

tia

l fo

r G

row

th

Need to Offer

these Today

Consider to

Offer

these Tomorrow

Phase out

Understanding key ecommerce and payment trends #Finance4SUB

• Size of the user base Is it large enough to make a difference to your business?

• Ability to market to this user base Can you reach these new users?

• Ease of integration What does it take to set it up and to manage the new option?

• Quality of customer service and risk management Is it tailored to your market?

• International reach Can they drive cross border buyers to your site?

• Value for money Does the benefit justify the effort?

8

SO WHAT TO CONSIDER WITH ONLINE PAYMENTS?

#Finance4SUB

Source: Payments Council: UK Payments Markets 2009 Report

PayPal’s estimated share of

consumer internet payments

rose to 19% in 2009

Correspondingly, the share of

payments made by credit card has

been falling

Continued growth in the shares of

payments made through PayPal and

by debit card

BECOMING THE UK ONLINE PAYMENT

STANDARD

CREDIT CARD 39%

DEBIT CARD 36%

PAYPAL 19%

OTHER 6%

CONSUMER INTERNET PAYMENTS BY METHOD 2009

TOTAL NUMBER OF PAYMENTS : 711 MILLION

9 OPPORTUNITIES FOR GROWTH #Finance4SUB

Founded in 1998

Over 230 million registered accounts globally including more than

22 million in the UK

Available in 190 markets and supports payments in 25 currencies

100 million accounts have been active in last 12 months

WHAT IS PAYPAL


HOW DOES PAYPAL WORK?

11

BUYERS CAN PAY WITH:


“Which payment method(s) do you prefer when you buy products online?”

Source :: Forrester Research Inc

40%

26%

24%

23%

19%

10%

60%

3%

43%

35%

5%

3%

35%

3%

57%

16%

17%

3%

26%

56%

3%

22%

31%

10%

51%

20%

14%

14%

2%

32%

51%

14%

10%

26%

19%

19%

19%

14%

11%

37%

16%

34%

43%

17%

11%

13%

24%

Credit card

Electronic bank transfer

Debit/payment card

PayPal

Cheque/accept giro

Cash

Alternative payment methods to credit cards are essential for success in Europe

43%

EU SHOPPERS – PAYMENT PREFERENCE

12 12 OPPORTUNITIES FOR GROWTH #Finance4SUB

Retail

Electronics

Travel and Event Tickets

Gaming

Other

LEADING BRANDS IN THE UK ACCEPT PAYPAL

13 13 OPPORTUNITIES FOR GROWTH #Finance4SUB

http://www.skillset.org/uploads/jpeg/asset_6300_hl.jpg

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http://www.heals.co.uk/

http://images.google.co.uk/imgres?imgurl=http://www.freecorporatelogos.com/thumbs/CLINIQUE.jpg&imgrefurl=http://www.freecorporatelogos.com/list.htm&usg=__q3O6sc5yCqb84ZezT98QPQZ2vss=&h=272&w=963&sz=59&hl=en&start=6&um=1&tbnid=ug3w78JCX4TWJM:&tbnh=42&tbnw=148&prev=/images?q=clinique+logO&hl=en&rlz=1T4GZAZ_en-GBIE234IE234&um=1

http://images.google.co.uk/imgres?imgurl=http://www.inkslip.com/mongolrally/images/halfords_logo.png&imgrefurl=http://www.inkslip.com/mongolrally/sponsors.html&usg=__yRhYOJmJwjsJ4Q0633ocs9PUfdk=&h=90&w=424&sz=2&hl=en&start=4&um=1&tbnid=kWgyoZMP5bbUcM:&tbnh=27&tbnw=126&prev=/images?q=HALFORDS+logO&hl=en&rlz=1T4GZAZ_en-GBIE234IE234&um=1

http://images.google.co.uk/imgres?imgurl=http://www.sportsbettingpedia.com/bet365/bet365_logo.gif&imgrefurl=http://www.sportsbettingpedia.com/bet365/&usg=__TXxFqJoVg_5BMWnA-usNo33SyfM=&h=77&w=150&sz=5&hl=en&start=2&um=1&tbnid=JHnO1tnWQp5w5M:&tbnh=49&tbnw=96&prev=/images?q=BET365+LOGO&hl=en&rlz=1T4GZAZ_en-GBIE234IE234&sa=N&um=1

http://www.skillset.org/uploads/jpeg/asset_6300_hl.jpg

http://www.google.co.uk/imgres?imgurl=http://wordonthestreet09.files.wordpress.com/2009/03/comic_relief_logojpg.jpeg&imgrefurl=http://wordonthestreet09.wordpress.com/2009/03/13/comic-relief-whats-it-all-about/&h=327&w=600&sz=32&tbnid=6F4BW_DXDNAUAM::&tbnh=74&tbnw=135&prev=/images?q=comic+relief+logo&hl=en-GB&usg=__-qHaaFm8WRkZY9AA_-XvYwcRgNo=&ei=lvsKSsq2NIvGM4nB_M0L&sa=X&oi=image_result&resnum=1&ct=image

http://images.google.co.uk/imgres?imgurl=http://justgiving.files.wordpress.com/2009/06/justgiving-medium.jpg&imgrefurl=http://justgiving.wordpress.com/2009/06/09/a-sneak-preview-of-some-changes/&usg=__6yU85FsCEBffC7XmrC_R8sRlGhc=&h=165&w=794&sz=88&hl=en&start=6&um=1&tbnid=_ntPTp2Zj3ei2M:&tbnh=30&tbnw=143&prev=/images?q=JUSTGIVING+LOGO&hl=en&rlz=1T4GZAZ_en-GBIE234IE234&um=1

Easy way to send

and receive

money, with or

without a

website.

• Request money

• Send an invoice

• Send money via

email

• Mass Pay

Email

Payments/

Send Money Virtual Terminal

Accept credit and

debit card

payments over

the phone, fax or

mail orders.

• It's like a card

swipe machine in

retail outlets, but

all done online

• No technical

integration

needed

Website

Payments

Standard

Just add a

payment button

to your site and

you will be able

to accept

payments from all

around the world.

• Hosted by

PayPal – PCI

Compliant

• You can get up

and running in

minutes

Website

Payments Pro

The complete, all-

in-one online

payment solution.

• Allows you to

accept card

payment directly

on your website

without redirects

• No need for a

separate

Merchant

Account

Express

Checkout

Our Express

Checkout option

allows you to add

the familiar

PayPal button – a

magnet for

regular PayPal

customers.

• A simple, 3-click

process to buy

• Get up to 14%

more sales

PAYPAL OFFERS A RANGE OF PAYMENT

SOLUTIONS

14 OPPORTUNITIES FOR GROWTH

PAYPAL BALANCE


There is over $3bn in PayPal account balances

Users build a balance from selling on eBay or receiving funds

Many users spend this money as a ‘treat’ rather than withdraw it to their bank

account

This $3 billion turns over

every fortnight

#Finance4SUB

Over 30,000 consumer transactions were surveyed after making a purchase

using PayPal with various large online merchants

DRIVING INCREMENTAL SALES: SALES LIFT

SURVEY


Multiplying the survey results by PayPal's share of checkout quantifies the incremental sales lift

Would you have made this

purchase if PayPal had not

been offered as a payment

option?

Yes No

If no, Why do you say

you would not have

made this purchase if

you had not been able

to pay with PayPal?

#Finance4SUB

SAMPLE OF SURVEY RESULTS

Results from a series of online surveys of over 30,000 PayPal transactions on large online retailer websites. Conducted by Northstar Research Partners on behalf of PayPal, across 2008 and 2009


FOR ALL 27 LARGE ONLINE

RETAILERS INCLUDED IN

THE SURVEY, AN AVERAGE

OF 25% OF CONSUMERS

SAID THEY WOULD NOT

HAVE MADE THEIR

PURCHASE IF PAYPAL HAD

NOT BEEN AVAILABLE

#Finance4SUB

SECURITY AND CONVENIENCE: TOP

DRIVERS OF SALES LIFT

0%

10%

20%

30%

40%

50%

60%

70%

Security Convenience Balance Loyalty

OPPORTUNITIES FOR GROWTH 18

Results from a series of online surveys of over 30,000 PayPal transactions on large online retailer websites. Conducted by Northstar Research Partners on behalf of PayPal, across 2008 and 2009

#Finance4SUB

No Setup costs

No Monthly Fees

No Cancelation Fees

PayPal pricing banded

according to merchant volume

with PayPal

OUR FEES

OPPORTUNITIES FOR GROWTH 19 #Finance4SUB

Website

The majority of website platforms in the

UK already support the PayPal

functionality

Open source solutions have PayPal

built into their core product

Many developers familiar with PayPal

Documentation and sample codes

available on our website Checkout

All major UK shopping carts support the

PayPal functionality

Open source solutions have PayPal

available as add-ons

Payment

Pages

Main UK Payment gateways already

support PayPal functionality

HOW TO ENABLE PAYPAL


THANK YOU


PayPal Presentation - Finance4SUB Week

Economy & Finance

Transcript of PayPal Presentation - Finance4SUB Week