MCOMMERCE - UW KLANTENZIJN ER KLAAR VOOR, U OOK?

20/03/2013

PayPal - Moana AalderingBusiness Development Manager

Confidential and Proprietary

CONSUMERS USE PAYPAL ANYWHERE

25 Currencies

7M Merchants

190 Countries2012117 million

2013130 million

Process 19% of the Global e-Commerce Market Leading Brands Accepting PayPal

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27 Global financial networks

15K Local banks

Confidential and Proprietary

CONSUMERS USE PAYPAL ANYWHERE

25 Currencies

7M Merchants

190 Countries2012117 million

2013130 million

Process 19% of the Global e-Commerce Market Leading Brands Accepting PayPal

3

27 Global financial networks

15K Local banks

20121.7 million

Benelux

20132.0 million

19K Merchants

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PAYPAL: SIMPLE, FAST AND SAFE

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2

3

4

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PAYMENTS IN E-COMMERCE

1Checkout

Abandonment

50%Doesn’t complete

Privacy, security and safety

40%Very concerned

Choice in payment methods

24%Looking for alternatives

2 3

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THE EXPRESS ROUTE TO MORE SALES

Purchases can be completed in just 3 clicks...

This quick and easy process reduces basket abandonment prior to payment, thereby increasing conversion rates!

1. Customers choose to pay via Express Checkout

2. Review transaction details on one page

3. Buyer confirm order, pay and receive order

confirmation

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MORE THAN 19.000 MERCHANTSOFFER PAYPAL IN BENELUX

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MultiChannel - Online, Mobile & Offline

WHY CHOOSE FOR PAYPAL?

Easy CheckOut = Higher Conversion = More sales

Buyer & Seller Protection

No subscription or integration cost ;

only cost per transaction

Co-marketing = More traffic = More sales

Worldwide Payment Method

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A BETTER CUSTOMER EXPERIENCE

Only enter an email address + PayPal password

No sharing of financial details online

Choose how to pay

PayPal’s buyer protection

Confidential and Proprietary

SMARTPHONE UBIQUITY IS THE DRIVER FOR CONVERGENCE

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90cm Is the max distance between a person and their phone

25% Of people use their phone in the bathroom

66% Of people sleep next to their mobile phone

40 Is the average number of times per day a person uses their phone

125 Is the number of years worth of games played on mobile phones every day

Confidential and Proprietary

+28%

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COMMERCE IS GROWING FAST AND PAYPAL IS GROWING EVEN FASTER

+12%

2016

€ 172B

2012

€ 111B

2016€ 15B

2012€ 3B

+350%

2012$ 14B

2011$ 4B

2011

$ 118B

2010

$ 92B

Source: Forrester

European mobile retail

PayPal mobile payments volume

Source: Forrester

PayPal total payments volume

Mar

ket

PayP

al

European online retailCommerce Mobile Commerce

The segments with the highest # of mobile transactions in The Netherlands: Daily deals, Shoes, Fashion, Event tickets, Telco Topup, Food ordering, P2P payments

+52%

Confidential and Proprietary12

THE BOUNDARIES BETWEEN COMMERCE CHANNELS ARE BLURRING

2013 = $10T

Online 7%

Web-influenced

offline38%

“Commerce”Non-web-influenced

offline55%

Online 4%

Offline96%

Source: ForresterSource: Forrester, Euromonitor and Economist Intelligence Unit Source: Economist Intelligence Unit

2008 = $325B

Yesterday Today Tomorrow

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ENABLE CUSTOMERSTO SHOP AS THEY WISH

WEB

RETAIL

TABLET

PHONE“It’s not about eCommerce for PayPal any longer –

it’s Commerce. We are firmly in the center of it.”- John Donahoe, CEO eBay

SOCIAL

Deliver a consistently strong experience across all devices & channels.

Confidential and Proprietary

1414

DELIVERING THE FUTURE OF MONEY TODAY…

An essential part of our customer's lives, enabling secure commerce anytime, anywhere, any way.

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MOBILE SHOPPING REPRESENTS A HUGE OPPORTUNITY FOR RETAILERS

MILLIONS OF MOBILE USERS ~42% of EU adults own a Smartphone (+13% yoy) 900M tablets sold in 2016 (Comscore)

SHOPPING ON THEIR DEVICES 31.5% of Benelux PayPal merchants have received a

mobile transaction in June ’12*

GROWING % OF SALES M-commerce will grow by 62% during the next 12

months in Europe* In comparison, online sales are expected to grow by

14 % in the Benelux** More than 10% of transactions are made via mobile on

eBay in Europe and in the world***

* PayPal internal data, Continental Europe, Middle East and Africa, June 2012** Centre for Retail research, UK Britain and Europe, January 2012. UK, Germany, France, Italy, Spain, Denmark, Poland, Netherlands, Norway and Sweden. *** Source: eBay Q3 2011

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THE IDEAL M-COMMERCE PAYMENT SOLUTION

PayPal helps merchants build a great user experience with the “Autodetect” function for Smartphones and Tablets.

CHECKOUT LOGIN REVIEW PAYMENT COMPLETE

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OUR MOBILE USERS ARE HIGH VALUE CUSTOMERS

PAYPAL MOBILE CHECKOUT USERS Active, highly engaged buyers: 2X as many transactions and volume than the average PayPal userAttractive customers– high value, affluent shoppers; tech buying enthusiasts and savvy online spenders

ATTRACTIVE DEMOGRAPHICS TO ANY RETAILER

Gender neutral (skew slightly male), wide age range (18-54)Shopping for the household: 63% married; 45% with childrenProgressive, tech savvy, affluent, urbanites

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COMSCRE: REASONS FOR SELECTING A MOBILE PAYMENT METHOD

Source: Comscore Study April 2012:Base: Online Smartphone and/or Tablet Buyers (n=988)

Security of payment

Ease of use/ simplicity

Security of mobile site

Total cost

Familiarity with the website

Can see payment method w/out going to checkout

Where I'm shopping

Rewards, points

Reason for purchase

78%

77%

77%

72%

68%

68%

65%

64%

61%

Q. How important are each of the following when deciding what type of payment method to use for mobile purchases from your smartphone or tablet? (Top 2 shown)

…are PayPal’s greatest strengths! Top reasons users choose a mobile payment method

Confidential and Proprietary19

CONSUMERS ARE DRIVING THE OMNI-CHANNEL SHOPPING REVOLUTION

1 in 8 EU smartphone owners engaged in M-Commerce transactions in 2012

18% of Europeans who use mobile internet daily have compared prices on a mobile device while in a shop

67% of people have used multiple devices sequentially to shop online

47% of consumers prefer to research products online before buying

51% of online shoppers are logged onto Facebook while on E-commerce sites

35% of U.S. consumers said they had “showroomed,” and chose to buy online specifically because of better prices

Sources: Forrester, comScore, Google, Sociable Labs

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TODAY WHEN YOU SHOP YOU USE…

DIGITAL WALLET

RichTransaction

Data

Relevanceand

Personalization

Increased Consumer

Engagement

Online Point of Sale

Mobile PayPal Partners

THE DIGITAL WALLET IS UNIVERSAL & ACCESSIBLE ANYWHERE AND ANYTIME

Card Debit Balance

PrepaidPLCC

Loyalty Coupons

PayPal Credit

Gift Cards Offers

Carrier Local Methods

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SHOPPING WILL BE POSSIBLE ANYWHERE, ANYTIME AND ANYHOW

Real-time inventory search Paperless coupons

Manage money after paymentPay with mobile to skip the line

Location based offers

Pay with phone number and pin

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CHECK-IN TO CHECK-OUT. MOBILE IS CHANGING THE CONSUMER EXPERIENCE

Check-in, order and “Pay with PayPal”. No need for your wallet.

“Pay with PayPal” Select the Consumer to Pay Enjoy!

Simply Check-in Order“PayPal accepted here”

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US HOME DEPOT IN-STORE PAYMENT

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PAYPAL TAILORS ITS SERVICES TO CREATE INNOVATIVE CONSUMER EXPERIENCES

Case Study: Co-op Bookshop

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FRANCE MCDONALDS IN-STORE PAYMENT

Confidential and Proprietary

HOLIDAY PROMO: SINGAPORE SUBWAY

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Confidential and Proprietary

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AMSTERDAM: 24/7 WINDOW SHOPPING WITH 9STRAATJESONLINE.COM

Confidential and Proprietary

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PROMOTIONS & COUPONS

MOBILE COMMERCE

PAYMENT

STORE LOCATION

LOYALTY

SELF-SCANNING & SELF-CHECKOUT

IN-STORE PRICE COMPARISON

SHOPPING LISTS

MOBILE AT THE CENTER OF CONSUMER’S SHOPPING LIVES