3. Facts at a Glance
• PayPal has 132 million active registered accounts and is available in 193 markets
• PayPal supports payments in 25 currencies
• PayPal has localized marketing websites in more than 80 markets around the world
• PayPal is headquartered in San Jose, California with offices in Timonium, Maryland
– European headquarters: Luxembourg
– International headquarters: Singapore
6. Annual Media Spend
• 2012 National Total: $7.01 million
– Magazine: $0.01 million
– National Spot Radio: $0.38 million
– Internet: $6.62 million
• 2011 National Total: $5.46 million
– Outdoor: $0.01 million
– Internet: $5.45 million
• 2010 National Total: $1.70 million
– Outdoor: $0.09 million
– Internet: $1.60 million
Source: Access Confidential
8. Industry Overview: Definitions
• Merchant account – A type of bank account that allows businesses to accept payments by
payment cards, typically a credit or debit card.
• Payment gateway – An ecommerce application service provider service that authorizes
payments for e-businesses, online retailers, bricks and clicks, or traditional bricks and mortar.
• Recurring billing – When you give a merchant permission to charge your account at regular
intervals for purchase of goods or services.
• Point of sale – The place where a retail transaction is completed.
• P2P payment – An online system that allows individual members to complete financial
transactions with one another by using an auction style process that lets members offer loans
for a specific amount and at a specific rate.
• Bricks and clicks – A business model by which a company integrates both offline (bricks) and
online (clicks) presences.
• Brick and mortar – Often used to refer to a company who possesses a building or store for
operations.
9. Industry Overview: Definitions
• API – Application Programming Interface. Specifies how some software components should
interact with each other. Most often an API is a library that includes specifications for routines,
data structures, object classes, and variables.
• NFC – Near Field Communication. A set of standards for smartphones and similar devices to
establish radio communication with each other by touching them together or bringing them into
close proximity, usually no more than a few inches. Present and anticipated applications include
contactless transactions, data exchange, and simplified setup of more complex
communications such as Wi-Fi. Is also used in paying for purchases made in physical stores or
transportation services.
• PCI – Payment Card Industry. Denotes the debit, credit, prepaid, e-purse, ATM, or POS cards
and associated businesses. Most commonly known as Payment Card Industry Security
Standards Council created by all the leading credit card companies. The council formed a body
of security standards known as the PCI Data Security Standards and these standards consist of
12 significant requirements including multiple sub-requirements which contain numerous
directives against which businesses may measure their own payment card security policies,
procedures and guidelines.
10. Industry Overview: Articles - Will Mobile Commerce
Overtake E-Commerce? 8/3/12
How vital is mobile commerce becoming? Worldwide, mobile
commerce is set to hit $119 billion by 2015. The projected
amount of retail purchases made online by 2014 is 54%.
To better grasp mobile's incredible growth and its implications,
Big Commerce, an e-commerce software software company,
recently studied analyst and trend-watching data from various
sources, then created the infographic below.
Highlights about today's mobile shopper:
• About 1 in 5 smartphone users in America scanned a QR
code in-store last year.
• Worldwide, nearly 1 in 3 phones sold in 2011 was a
smartphone.
• 42% of all US mobile subscribers have smartphones; 51% of
all UK subscribers have smartphones; and 44% of EU5
subscribers do.
• Smartphone users spend more time on mobile apps than on
mobile sites.
• One out of five people research products on mobile devices
while watching TV.
• 53% of mobile consumers engage in showrooming—looking
at products in-store then buying online.
• Men prefer to make purchases on their phones; women prefer
tablets for shopping.
The research also offers insight into
where mobile and e-commerce are
heading:
• User industry specialists predict that
50% of smartphone users will buy
primarily via mobile wallets.
• Nearly 1 in 2 Americans are interested
in mobile wallets are forms of
payment.
• Worldwide, mobile commerce is set
to hit $119 billion by 2015.
• The projected amount of retail
purchases made online by 2014 is
54%.
11. Industry Overview: Articles - Will Mobile Commerce
Overtake E-Commerce? Infograph segments
Source: http://www.marketingprofs.com/chirp/
2012/8613/will-mobile-commerce-overtake-e-
commerce-infographic
• Mobile wallets are growing rapidly
as we become more technologically
advanced.
12. Berg Insight’s CEO Johan Fagerber on where the global mobile wallet
payments market is heading, 7/5/13
We interviewed Johan Fagerberg, CEO of wireless analyst firm Berg Insight, to get his views of the ever-evolving
mobile wallet payments arena and give us a few basic facts on a sector that is likely to experience triple-digit
growth rates over the next few years.
In a nutshell, what is a mobile wallet?
A mobile wallet is an application that enables in-store payments to be authorized with a mobile phone. Furthermore,
a mobile wallet facilitates the delivery of value-added services such as offers, coupons and receipts. Eventually,
mobile wallet services will make it possible for consumers to leave their leather wallets at home, as all shopping can
be done using a mobile phone. In addition to in-store payments, mobile wallets can typically be used for other
purposes such as conducting person-to-person money transfers or online purchases. There is a range of
technologies that can be used for completing a purchase with a mobile phone. NFC is often considered to be the
obvious future technology, but there are also several alternative technologies such as 2D barcodes, RFID tags,
encrypted sound and Bluetooth.
Why do mobile wallet services matter and what is the status of the market today?
Mobile wallet services will change both offline and online commerce by enabling new shopping experiences for
consumers and by creating an unprecedented opportunity for retailers and brands to interact with their customers
while purchase decisions are being made. However, the mobile wallet market is still in its infancy. Relatively few
companies have launched mobile wallet services that are commercially available to consumers, and mobile wallets
are still accepted at very few stores. The market is nevertheless now moving rapidly and commercial rollouts of
numerous NFC and non-NFC wallet services are underway.
The required infrastructure for mobile wallet services is being rolled out and key partnerships are being formed
between mobile network operators, financial institutions, retailers and other companies. This will result in a
proliferation of mobile wallet services during the next few years, which will be a very important time during which
wallet operators have an opportunity to learn and improve their services. Before mobile wallets can attract the mass
market, a broad range of services beyond payments need to be made available to consumers. People do not have a
problem with cash or payment cards today. Value-added services that enable new shopping experiences before,
during and after payments will be what truly distinguish mobile wallets from the traditional payment instruments.
13. Berg Insight’s CEO Johan Fagerberg on where the global mobile
wallet payments market is heading
How is the European market for mobile wallet services developing?
The European market for mobile wallet services is developing quickly, with substantial momentum behind NFC wallet services
and many launches of non-NFC wallet services are also in progress. Commercial mobile wallet services will have been
launched by companies such as Telefónica, Orange, T-Mobile, Vodafone, ING Bank, BNP Paribas, Barclaycard, Swedbank,
mBank, PKO Bank Polski, Seamless, Auchan and PayPal by the end of 2013. As a result, there will be mobile wallet services
live in nearly half of the EU27+2 countries at the end of the year. Berg Insight expects that 2016–2017 will be the first years in
which mobile wallets approach mass market penetration and more than ten million new wallet users will then be added on an
annual basis. The number of active mobile wallet users is projected to increase from 500,000 in 2012 to 42 million in 2017,
whereas the in-store payments volume will grow from well below €0.1 billion in 2012 to €45 billion in 2017.
How is the North American market for mobile wallet services developing?
There were approximately 7.5 million mobile wallet users in North America at the end of 2012, which completed in-store
payments for a total of $0.5 billion (€0.4 billion) during the year. However, this relatively high number of users and transactions
was almost exclusively due to the phenomenal success of Starbucks’ application for mobile payments that had around 7
million users at the end of 2012. Mobile wallets that can be used at multiple merchants only had a few hundred thousand users
in the region at the end of 2012. However, many promising initiatives are underway in both the US and Canada. Companies and
consortiums such as Google, Isis, MCX, PayPal, CIBC, LevelUp and Square are competing to become the consumer’s wallet of
choice, each with a unique approach to the market. Berg Insight expects that several of these initiatives will have a significant
impact on the market already in 2014. The number of active mobile wallet users will increase to 29 million in 2017, whereas the
in-store payments volume will grow to $44 billion (€33 billion) in the same year.
How large is the mobile wallet opportunity?
The emergence of mobile wallet services is the most significant development in the payments industry during the foreseeable
future, as mobile wallets will eventually replace cash, credit cards, debit cards and checks to become the most common
payment method for both in-store and remote purchases. Currently, payments with credit cards and debit cards worldwide
amount to approximately €10 trillion on an annual basis, which correspons to roughly 20 per cent of the world’s GDP or 1/3 of
global household consumption expenditures. Cash and checks are used to pay for another €15 trillion in purchases worldwide.
Source: http://www.itproportal.com/2013/06/05/berg-insights-ceo-johan-fagerberg-where-global-mobile-wallet-payments-market-heading/
14. Industry Trends: The Mobile Payment Revolution – Merchant
Warehouse – 4/18/13
Many companies, unsure of which direction the market is headed, are participating in more than one
wallet. For example, Starbucks has its own successful app, but it has also partnered with Square and
integrated to Apple’s Passbook. We predict that eventually the smartphone will become the mobile
wallet and consumers will have a variety of payment and loyalty apps to choose from, depending on
which places they visit most and which have the most compelling offers at the time. We don’t believe
any one single system will rule them all.
While NFC and QR are the predominant technologies driving mobile wallets, we should note that there
are a few players taking advantage of “empty hands” technology, like PayPal, that enables account
holders to pay at the point of sale by entering a phone number and a PIN, as well as contactless
check-in/check-out technology, like that from Paydiant, that leverages a “checkout” token to associate
an end user and their payment accounts with a transaction.
15. PayPal has chosen to distinguish itself from
the mobile wallet market, calling its offering
an ‘empty hands’ digital wallet. The wallet
works by allowing users to link their PayPal
accounts and pay for purchases by entering
their phone number and PIN code into the
retailer’s existing point-of-sale terminal; no
smartphone required.
The service also offers price comparison
and shopping list tools and support for
coupons and offers from retailer partners.
One interesting feature is that the PayPal
wallet allows customers to change their
method of payment after they make a
purchase. For example, a user could pay for
an item using a MasterCard, take it home,
and then later log in to his or her PayPal
account to switch the payment method to
Visa instead without any additional fee.
Industry Trends: The Mobile Payment Revolution – Merchant
Warehouse – 4/18/13
16. Industry Surveys: Computers: Consumer Services & The Internet –
4/13
BUSINESS-TO-CONSUMER E-COMMERCE GROWS
In 2002, eBay purchased PayPal for $1.5 billion in stock. We think this deal was one of the smartest in the history of the Internet
segment. PayPal made it easier for buyers and sellers to transact business on eBay, because it was secure and easy to use. While
PayPal was largely seen at that time as a way to enhance the Marketplaces operations, it has become a very strong business on its own,
due to its successful merchant unit that processes purchases for a wide variety of enterprises: everything from Apple and Dell Inc., to
major airlines, to the NBA. In 2008, eBay acquired Bill Me Later for $820 million, to expand its payments market opportunity with credit-
oriented purchases. In July 2011, eBay went further to strengthen PayPal in mobile payments and acquired Zong, a leading provider of
payments through mobile carrier billing, for $240 million. Zong had connections with more than 250 mobile networks and operates in 21
languages across 45 countries.
We see the Payments unit as the crown jewel of eBay, ironically, because of its substantial potential apart from the company’s
Marketplace businesses. Specifically, we see international and mobile as two significant growth drivers.
Since the beginning of 2011, eBay has acquired or invested in around 30 companies, many of which we think were small targets
identified as owning key ancillary technologies and which had attracted and cultivated key talent that could add value to eBay’s plans
for areas such as payments and mobile.
In February 2012, the company announced plans for people to pay with PayPal at The Home Depot Inc.’s roughly 2,000 domestic stores.
In March 2012, PayPal announced PayPal Here, which allows merchants and others to accept credit-card payments at physical
locations, competing with companies like Intuit Inc. and Square Inc. The new service was launched primarily to help small businesses
accept payments from their customers through mobile devices such as iPhones or other smartphone devices. In May 2012, PayPal
announced that 15 additional national retailers, ranging from Abercrombie & Fitch and Advance Auto Parts to Tiger Direct and Toys “R”
Us, would enable in-store PayPal payments. As of the end of 2012, 23 national vendors had signed up to work with PayPal, covering
18,000 locations across the US.
In August 2012, PayPal announced an important agreement with Discover Financial Services, best known for its credit cards and credit
card network. It would enable PayPal users to make payments at the over 7 million retail locations across the US using Discover’s
network, and we anticipate a domestic launch in mid- 2013. The companies plan to evaluate and extend the initiative to international
locations in the future. In January 2013, PayPal signed a deal for its mobile services to be integrated into NCR point-of-sale hardware
and devices, allowing for further expansion of its footprint, especially in restaurants, gas stations, and convenience stores.
17. Industry Surveys: Financial Services: Diversified – 6/13
PayPal has a considerable account base and early- mover competitive advantage. PayPal has a
mobile application for consumers and, in March 2012, it introduced one for business called PayPal
Here. The PayPal Here app can accept card payments through the phone’s camera as well as
through a mobile card reader similar to Square; merchants pay a similar 2.7% transaction fee for
debit and credit cards (there are no fees for check acceptance). In August 2012, PayPal announced
an agreement with Discover Financial Services to bring PayPal to more than seven million
merchant locations across the US that already have an existing relationship with Discover, starting
in spring 2013 (as discussed in more detail in the “Current Environment” section of this Survey.)
MOBILE PAYMENTS
Over the past year, we have seen a number of companies entering agreements in the area of
mobile payments. As we see it, although some players are primarily focused on increasing their fee
revenues, all of the players are interested in accessing the rich data that is captured by payments
systems. Below we discuss several major transactions.
DISCOVER/PAYPAL
In August 2012, PayPal (owned by eBay) announced an agreement with Discover to bring PayPal to
more than 7 million merchant locations across the US that already have an existing relationship
with Discover, starting in spring 2013. We estimate that Discover/PayPal’s combined approximate
annual spend will be around $200 billion. That said, we think American Express has a head start, as
its total spending in 2011 was $822 billion (and $888 billion in 2012). Further, the $130 billion online
spend in 2011 for American Express compared favorably to PayPal’s net total payment volume of
$119 billion. In our view, the high penetration of offline merchant relationships favors the more
established networks, such as American Express, Visa, and MasterCard. However, we also think
that the Discover/PayPal combination has strong growth potential and that it will be a formidable
player in the mobile payments game. We also believe that the PayPal relationship adds value for
Discover, particularly on the international side.
18. Industry Surveys: Telecommunications: Wireless – 6/13
NFC-ENABLED SMARTPHONES: A TECHNOLOGY YET TO TAKE OFF
Major financial institutions and wireless carriers have formed partnerships to position themselves
ahead of widespread consumer adoption. AT&T, Verizon, and T-Mobile have formed a joint venture,
Isis, to create a mobile payments application and enable an ecosystem based on NFC technology.
Isis supports credit cards such as Amex, Capital One, Chase, and Barclaycard. In October 2012,
Isis launched its service in Salt Lake City (Utah) and Austin (Texas) in a limited test run restricted to
a few hundred retailers. In those cities, certain locations such as McDonalds, Rite Aid, 7-Eleven,
and Petco will support Isis mobile payments, as well as up to 7,500 NFC-enabled vending
machines. As of May 2013, Isis was still only available in those cities. Isis-ready smartphones
include the HTC Droid Incredible 4G LTE, the Droid Razr HD, and the Droid Razr Maxx HD.
19. Euromonitor International: 10 Global Macro Trends for the Next
Five Years – 10/12
9. A More Connected World
The growing internet base has led to a boom in e-commerce. Online marketplaces, such as
Amazon, eBay and Taobao, combined with the development of more secure payment methods, like
PayPal, enable people to buy and sell high volumes of goods all over the world.
GLOBAL SHOPPING
E-commerce is an area that has benefited enormously from the rapid rise in internet usage and has
helped made the world smaller. In China, for example, internet retailing rocketed by 1,681% in real
terms between 2006 and 2011, to RMB160 billion (US$22.9 billion).
Online marketplaces, such as Amazon, eBay and the Chinese rival Taobao, combined with the
development of more secure payment methods, such as PayPal, enable people to buy and sell
high volumes of goods all over the world. High street and shopping mall retailers have already
suffered declining sales as a result of the move towards on-line shopping, and this is likely to
intensify further in the future.
Nevertheless, on-line shopping has yet to penetrate the daily, or even weekly, life of most
consumers. Euromonitor International‟s annual survey of on-line consumers showed that while
almost three quarters of respondents had purchased a physical item on-line (excluding groceries)
at least once before, only one quarter do so on a monthly basis and a mere 10% do so weekly.
21. Introduction to PayPal
PayPal a simpler way to pay.
Credit cards, debit cards, bank accounts. With so many payment methods, it can be a challenge to keep
everything straight.
Think of PayPal as a digital wallet – one convenient, secure spot to keep all your ways to pay. However,
you don’t need a balance in your account to shop.
With PayPal, you have the freedom and flexibility to pay the way you want, all while keeping your financial
information secure.
PayPal is the world's most popular "middleman service" for online purchasing. Where moneygrams and
wire transfers were the standard in the 20th century, today over 140 million internet users prefer to use
PayPal to send money to each other via email. PayPal has become such a convenient and trusted way to
transfer money online, 90% of eBay's purchases go through PayPal.
Similar to an escrow service, PayPal acts as the middleman holder of money. Through its policies,
practices, and business integrity, PayPal has earned the trust of both parties. With multiple guarantees in
place, buyers and sellers entrust PayPal with their credit card and bank information. PayPal keeps that
private customer information secret. Then, while "blinded" from the other party's confidential information,
strangers safely send money to each other through PayPal and email.
You need no special technology nor a business license to send/receive money through Paypal. The only
requirements are:
– a valid email address
– a valid credit card or bank account (if you have a U.S. PayPal account, then without a bank you will
only be able to obtain your money via a check mailed to you)
Source: paypal.com
22. Mission Statement
• The Future of Payments is Now. PayPal is re-imagining money and creating a better shopping
experience, from start to finish, no matter what’s being bought, how it’s being paid for, or where
it’s being sold.
Source: paypal-media.com
23. Products & Services
• PayPal Here
– Accepts credit cards, checks, and PayPal wherever your customers are on your iPhone,
iPad, or Android devices
– Payment funds are usually available in minutes in your PayPal account. Withdraw funds on
the spot with a PayPal merchant debit card and get the added benefit of 1% cash back on
eligible purchases made with your card.
– All card swipes and PayPal transactions have the same 2.7% rate with no hidden fees or
commitments.
– Can connect multiple PayPal Here card readers to your account and let employees collect
payments on your behalf.
– Whether you run a restaurant or multiple chain stores, PayPal integrated mPOS systems can
help manage your growing off-line business.
– The triangle-shaped device costs $14.99 at any local Staples or AT&T retail store
24. Products & Services
• Add Cash
– Add cash to your account so you can use it instantly. It's easy – shop anywhere PayPal is
accepted, send money to anyone, or withdraw it.
• Balance Manager
– Makes sure your money is there when you need it. Simply set up a recurring, automatic
transfer from your bank account to your PayPal account and you'll know your online
payments are covered.
• Bill Me Later
– Simple, flexible credit line built-in to your PayPal account that gives you the flexibility to pay
in full or spread out your payments over time
• Donate with PayPal
– Whether it is making a child’s day, rescuing an endangered animal, or helping a friend in
need, millions use PayPal to support the causes that matter most to them. When users
donate through PayPal, they cover all transaction fees so 100% of their gift will reach the
charity they are supporting.
• Fundraise
– Can collect donations on your website, on Facebook, and at fundraising events.
25. Products & Services
• MicroPlace
– Make an investment that can help alleviate poverty and earn you a return by choosing where
your money goes, managing your portfolio online, and sharing the impact with friends and
family.
• PayPal Mobile
– Money is put in your pocket through the PayPal app and PayPal Here app.
• PayPal Debit Mastercard
– Users can use their balance everywhere Debit MasterCard is accepted. They can withdraw
their PayPal balance at any ATM with no annual fee, earning unlimited 1% cash back on
eligible purchases with the protection of MasterCard’s Zero Liability policy for unauthorized
purchases.
• PayPal Extras Mastercard
– Users can use their PayPal Extras MasterCard to get 2x points for all their PayPal and eBay
purchases.
• PayPal PrePaid Mastercard
– Can get paid up to 2 days faster with no-cost direct deposit, reload card account at any of
more than 130,000 NetSpend Reload Network locations, and link the card to a PayPal
account for full access to account functionality and features.
26. Products & Services
• PayPal Shopping
– Can get exclusive deals, coupons, and discounts and up to 25% off on thousands of items
when you shop.
• PayPal in Stores
– Sign up for a PayPal account, then activate your account for in-store checkout. Select
PayPal when you’re at the register, or simply press credit and swipe your PayPal payment
card. Store coupons and offers are automatically applied when you pay. Plus, the seller
never collects your financial info.
• Security Key
– Creates random temporary security codes that help safeguard your PayPal account when
you log in. It comes in 2 types, each with different advantages:
• Security key: You carry this small credit-card sized device with you. It creates a unique
security code on the go.
• Mobile phone security key: You can sign up to get security codes sent by text message
to your mobile phone.
• Student Account
– Teens get an actual debit card they can use everywhere Debit MasterCard is accepted (with
their own name on it) in a controlled environment that provides a greater opportunity for
teens to budget and spend wisely. Anyone 13 years or older can have one—they just need
their parent to open an account for them. Parents can see everything that happens with the
account as they get low balance and high-spending alerts and can choose how much money
they put into their teen’s account.
28. Financials
• PayPal’s 2012 annual revenue was $5.6 billion, up 26% year over year
• PayPal’s international business accounted for more than half of total revenue in 2012
• PayPal revenues represented 40% of eBay Inc. revenues in 2012
• New Total Payment Volume (2012): $145 billion, up 22% YOY
• PayPal’s Merchant Services business processed $97 billion in Total Payment Volume in 2012, up
25% year over year
• Approximately 25% of PayPal’s business is cross border trade
• PayPal processed $14 billion in mobile payment volume in 2012 – more than 3 times the mobile
payment volume of $4 billion that it processed in 2011
• PayPal expects to process $20 billion in mobile payment volume in 2013
30. Key Dates
• 1998: Max Levchin and Peter Thiel founded Confinity, a company whose main objective was to
enable money transfers solely on PDAs and Palm Pilots because unlike real cash in a wallet, the
encrypted digital wallets can never be stolen
• 1999: Elon Musk founded X.com, an internet financial services company
• 1999: Representatives from Nokia Ventures and Deutsche Bank “beamed” Peter Thiel $4.5 million
in venture funding from a Palm Pilot
• 1999: Developed the Money Market Fund, allowing users to earn dividends on the unused money
in their accounts
• 2000: As both companies were locked in a heated competition to gain share on eBay, Confinity and
X.com merged to create PayPal, thus allowing people to email payments
• 2000: PayPal hits one million users and creates their first customer service center in La Vista,
Nebraska
• 2000: Confinity’s software (allowed users to beam money to one another via Palm Pilots) is
discontinued
• 2001: Levchin teams up with David Gausebeck to develop the Gausebeck-Levchin Test, a
challenge response test to prevent fraud that hosts an image with black letters on top of a yellow
background with thin black lines - a human can identify the random letters but a computer robot
cannot – known as CAPTCHAS, which are widely used across the internet still today
Source: paypal-media.com
31. eBay Acquires PayPal
• 2002: Because of his “war on fraud,” Levchin was named the “Innovator of the
Year” by the MIT Technology Review
• 2002: PayPal goes public and becomes the first IPO after the 9/11 attacks,
seeing their stock rise more than 54% that first day and closing at $20.00
• 2002: eBay Inc. acquires PayPal for $1.5 billion, combining the strength of the
world’s largest online marketplace with the web’s leading payment system
• 2002: PayPal becomes available in Euros and Pounds
• 2004: After the addition of PayPal as a payment option to eBay UK, PayPal's
revenue numbers grow by nearly 300%, ending at $1.4 billion globally
• 2005: PayPal Acquires VeriSign’s Payment Gateway and combines it with
PayPal’s merchant services platform
• 2006: PayPal goes mobile, enabling users to text money via their mobile
phones anywhere at any time
Source: paypal-media.com
32. PayPal Grows
• 2006: PayPal begins their first massive international expansion, expanding to 103 new markets and
adding 10 new currencies
• 2007: Introduced the PayPal Security Key, which adds an additional layer of protection when users
log into their PayPal or eBay accounts
• 2008: Announced it acquired Israel’s Fraud Sciences Ltd for $169 million, enhancing PayPal’s
security and fraud management systems
• 2008: Acquired Bill Me Later for approximately $820 million in cash and approximately $125 million
worth of outstanding options, thus creating a credit line that’s built-in to PayPal users’ accounts
• 2009: Introduced the PayPal Student Account, eliminating the hassle of everyday money exchange
between parents and teens, while giving teens the chance to learn good spending habits and
experience being responsible for their own money
– Parents can establish up to four PayPal sub-accounts, transferring funds into those accounts,
on a one-time or recurring basis
• 2009: Added five new currencies, most notably the Israeli New Shekel after the acquisition of Israeli
start-up Fraud Sciences Ltd, thus becoming one of the most important and successful global
markets for PayPal alongside the likes of Brazil and the UK
• 2009: PayPal opens its global payments platform, PayPal X, and ushers in the next wave of
payment innovation
Source: paypal-media.com
33. eCommerce
• 2010: Facebook and PayPal announce a strategic relationship to offer
PayPal in key parts of Facebook's advertising and developer systems,
as well as becoming a payment option for Facebook Credits, which
gives users a fast and easy way to buy virtual goods on Facebook
• 2010: Magento, the global open source e-commerce platform, and
PayPal announced they expanded their relationship to offer PayPal to
online retailers through Magento's open source shopping solutions
Source: paypal-media.com
34. PayPal Meets the Smartphone
• 2010: Unveiled their new Send Money
app for the iPhone, allowing customers
around the world secure mobile access
to their money and convenient features
for everyday life, including Bump
money transfers, Split the Check, and
Collect Money
– Was downloaded one million times in less
than three weeks and was soon released
to Android users
– Eventually allowed users to transfer checks
into their PayPal balance for free by simply
taking a photo with your iPhone through
BankServ’s Mobile Check Capture service
Source: paypal-media.com
35. Tap-and-Pay
• 2010: PayPal and Bling Nation, a mobile payments service
provider of tap-and-pay payments at the point of sale, introduced
PayPal Bling, which allows consumers to fund purchases by
linking the BlingTag to a PayPal account on their mobile phone
• 2010: Expanded its purchase protections for shoppers around the
world when they make purchases, protecting cover shoppers on
merchant websites if they don’t receive an item they purchased or
if they receive an item that is significantly different than described
by the merchant
Source: paypal-media.com
36. 2011: The Year of Acquisitions
• 2011: Acquired GSI Commerce, a leading provider of
ecommerce and interactive marketing services, for
approximately $2.4 billion. Combined with eBay
Marketplaces and PayPal, GSI enhanced their
position as the leading strategic global commerce
partner of choice for retailers and brands of all sizes.
• 2011: Acquired WHERE ads (later renamed PayPal
Media Network), a location-based service and ad
network, in a deal that gives the service added ability
to drive more local and offline commerce
• 2011: Acquired Israeli start-up The Gifts Project, a
social commerce platform that powers online group
gifting and enables online retailers, marketplaces, and
gift stores to bring shoppers together through social
buying experiences. This acquisition powers eBay
Group Gifts, which integrates three of the world’s
largest communities – Facebook, eBay, and PayPal – to
make it super-easy to solve a common problem:
finding, organizing, paying for, and delivering a gift from
many to one – all online.
Source: gigaom.com; blog.ebay.com; ebayenterprise.com
37. There’s a New Sheriff in Town
• 2011: PayPal acquires Zong for $240 million
adding a compelling new way for consumers to
pay for items online by letting users pay for
things, particularly virtual goods online, via direct
billing to your mobile phone
• 2012: Shortly after the acquisition of Zong,
PayPal’s President at the time, Scott Thompson,
left suddenly to become the CEO of Yahoo, which
only lasted less than six months. David Marcus,
the former CEO and founder of acquisitee Zong,
became the President of PayPal after being
named the VP of Mobile from the acquisition.
Source: paypal-media.com; techcrunch.com
David Marcus
38. Expanding Offline
• 2012: In an effort to expand their offline presence, PayPal
partnered with MoneyGram, a money transfer company, to
give PayPal users the option to deposit and withdraw
funds from their accounts from many of MoneyGram's
284,000 global locations
• 2012: Released their first ever national ad campaign
featuring actor Jeff Goldblum and his signature dry humor
Source: mashable.com
40. bizdevBRIEF
Key Players
40
Source: Access Confidential
David Marcus - President
Patrick Dupuis - Chief Financial Officer
James Barrese - Chief Technology Officer
Tom Keithly - Chief Risk Officer
Mark Lavelle - Senior VP - Strategy & Business Development
Gary Marino - Senior VP, Global Financial Services and the
Americas
Rupert Keeley - Senior VP, EMEA and Asia Pacific
John McCabe - Senior VP President, Worldwide Operations
Christina Smedley - VP, Corproate Communications
Hill Ferguson - VP, Global Product
Don Kingsborough - VP, Retail & Prepaid Products
41. bizdevBRIEF
Bios
41
Source: Access Confidential
David Marcus- President
Marcus joined PayPal as Vice President and General Manager of Mobile division. Under his
leadership, Paypal launched it’s offline mobile card reader solution PayPal Here. He became
President of the company in 2012.
Marcus founded Echovox which paved the way for Zong Mobile Payments. Zong was
acquired by Ebay’s Paypal in 2011.
Patrck Dupuis - Chief Financial Officer
Dupuis joined in PayPal in 2010. Patrick is responsible for overall financial planning and
management as well as operational excellence.
42. bizdevBRIEF
Bios
42
Source: Access Confidential
James Barrese- Chief Technology Officer
Joined PayPal in 2011 as VP of Global Product Development and became Chief
Techmnology Officer in 2012.
Prior to PayPal, Barrese was VP for delivering open platforms, infrastructure, systems
software, analytics and site operations at Ebay.
Graduated Stanford as a high frequency communications specialist for the US army
Signal Corp.
Tom Kithley- Chief Risk Officer
Joined PayPal in 2008. Previously the vice president of risk management and the
chief credit officer at Bill Me Later.
His responsibilities include developing new approaches to risk and credit
management that ensure unmatched choice and convenience for consumers and
retailers as PayPal continues to redefine shopping in the era of connected commerce.
43. bizdevBRIEF
Bios
43
Source: Access Confidential
Mark Lavelle- Senior VP, Strategy & Business Development
Joined Paypal when BillMeLater was acquired by PayPal in 2008.
Former vice president of corporate development at Bill Me Later.
Lavelle is responsible for corporate strategy and business development as he
continues to work to develop new approaches to digital payment that connect
businesses with consumers in ways that increase profitability for merchants and
improve shopping experiences for their customers.
Gary Marino- Senior VP, Global Financial Services & the Americas
Co-founder of BillMeLater, Gary joined PayPal in 2008.
Marino works to strengthen the financial flexibility of the PayPal digital wallet through
a comprehensive portfolio of credit services that includes Bill Me Later and a wide
range of additional products offered with PayPal’s banking partners around the world.
A graduate of Syracuse University and Indiana State University, Gary is a board
member of the Johns Hopkins Discovery Fund for research in rheumatology.
44. bizdevBRIEF
Bios
44
Source: Access Confidential
Rupert Keeley- Senior VP, EMEA and Asia Pacific
Rupert joined PayPal in 2010 to help bring connected commerce to businesses and
consumers in developed and developing economics initially in Asia, but subsequently
in Europe, the Middle East, and Africa.
A graduate of the University of Manchester and the City University Business School,
Rupert has undertaken executive roles in leading banking and payment organizations
on four continents.
John McCabe - Senior VP, Worldwide Operations
Joined Paypal in 2009. Previously the executive vice president at Wachovia Direct
Access.
Has more than 30 years experience in banking and technology.
45. bizdevBRIEF
Bios
45
Source: Access Confidential
Christina Smedley - VP, Corporate Communications
Joined PayPal in 2012. Previously Global Chair of Consumer Marketing in PR giant
Edelman.
From 1999 to 2003, Christina served as director of worldwide communications at
Amazon.com, where she led the company’s communications activities in all markets
outside the U.S., directed retail planning for amazon.co.uk, and handled advertising,
media spending, research, online activities, customer relationship management, and
email marketing.
Hill Ferguson - VP, Global Products
Joined Paypal in 2011. Previously VP of product and MArketing at Zong
Focuses on PayPal’s unique assets to innovate at scale, developing products that
simplify the lives of consumers and help small businesses grow big.
46. bizdevBRIEF
Bios
46
Source: Access Confidential
Don Kingsborough - VP, Retail & Prepaid Products
Joined PayPal in 2011.
President of consumer products at Atari in the late 1970s and early 1980s, Don played
a central role in the introduction of the Nintendo Entertainment System in the United
States, which helped revitalize the computer game industry.
Leads efforts to transform the way people shop by extending PayPal’s online digital
payment innovations into the offline world.
In 2001, Don founded Blackhawk Network and was CEO for a decade, which
pioneered the gift card market and revolutionized the way people shop for presents
for family, friends, and acquaintances.
One of the creators of laser tag and the man behind the ‘Teddy Ruxpin’ talking bear.
50. TV – ‘Your secret code should stay a secret.’
• Part of PayPal’s first ever national-ad campaign featuring Jeff Goldblum (Oct. 2012)
Source: http://www.youtube.com/watch?v=OawGDnUMA3k
51. TV – ‘We’re now accepted all over the place.’
• Part of PayPal’s first ever national-ad campaign featuring Jeff Goldblum (Oct. 2012)
Source: http://www.youtube.com/watch?v=v_0pOhJcTSA
52. TV – ‘Keep all your cards in one place.’
• Part of PayPal’s first ever national-ad campaign featuring Jeff Goldblum (Oct. 2012)
Source: http://www.youtube.com/watch?v=Wr-6cFGmFBM
53. TV – ‘Shop without sharing your life story.’
• Part of PayPal’s first ever national-ad campaign featuring Jeff Goldblum (Oct. 2012)
Source: http://www.youtube.com/watch?v=veXaRDB9IG0
67. bizdevBRIEF
Competitive Landscape: ClearXchange vs. PayPal
Backers: Bank of America, Wells Fargo, and JP
Morgan-Chase
Biggest difference: Customers of the participating
banks do not need to create a new account out of their
primary bank like they would at PayPal
Customers also do not have to list checking account or
routing numbers
Also extremely similar to what Visa is doing: not having
a middle man between the consumer and the bank.
Sources: http://money.cnn.com/2011/05/25/news/companies/banks_paypal_clearxchange/index.htm
http://www.nbcnews.com/technology/paypals-newest-u-s-competitor-visa-124361
68. bizdevBRIEF
Competitive Landscape: Dwolla (orange) vs. PayPal (blue)
• Dwolla – a payment network that allows a business or person to accept, send, or request
money.
• Biggest difference between Dwolla and PayPal: At Dwolla, any purchase $10 and under does
not have a transaction fee. At PayPal there is always a transaction fee of 2.9% plus $0.30
Sources: www.dwolla .com
http://visual.ly/tale-two-payment-
startups-dwolla-vs-paypal
69. bizdevBRIEF
Competitive Landscape: WePay - The PayPal
Alternative
• An online payment system that allows
you to: sell tickets to events, collect
fundraiser donations, sell items online,
and send invoices
• WePay vs. PayPal – WePay has an
exclusive focus on group expenses such
as renting a ski house between six
friends. The WePay system allows group
lenders to keep track of who has paid
and who has not.
• While PayPal allows people to request
money from groups, the system is more
focused on e-commerce and is not as
sophisticated as the WePay System.
• WePay’s customer service is their key to
success. It’s supposedly the best out
there.
Sources: www.wepay.com
http://money.cnn.com/2010/10/12/technology/wepay/index.htm#
70. bizdevBRIEF
Competitive Landscape: Moneybookers Vs. PayPal
• Moneybookers: An online payment system that stores all your financial information securely so that
when you go to check out (where Moneybookers is a partner) you only need to enter your email and
password.
• Biggest difference between Moneybookers and PayPal: Moneybookers allows you to partake in
online sports betting and gambling rooms while PayPal does not.
40 currencies 25 currencies
Prepaid MoneyBookers
MasterCard
Prepaid PayPal MasterCard
ATM decline transaction fee =
none
ATM decline transaction fee =
$1
Delivery = 5-10 days Delivery= 2-4 weeks
VIP Status of Bronze, Silver, or
Gold depending on much you
spend in the first six months.
No VIP status. Premier, business
or regular account. You must
pay extra and apply for the
Premier and Business accounts
Sources: www.moneybookers.com
http://www.vip-cashback.net/skrill-moneybookers-faq/moneybookers-vs-paypal/
71. bizdevBRIEF
Competitive Landscape: MasterCard Vs. PayPal
• While the PayPass Wallet is basically the same service as
PayPal, the brand name of MasterCard gives the PayPass
a small competitive edge, being a brand known and
trusted for many years.
• MasterCard will store all of your shipping and credit card
information in their digital wallet, allowing you to easily
and safely purchase items on your mobile device.
Source: http://www.businessinsider.com/mastercard-launches-digital-wallet-2012-5
72. bizdevBRIEF
Competitive Landscape: Isis
• Isis: A US-mobile carrier backed mobile payment system. The
backers are AT&T, Verizon, and T-Mobile.
• SIM card compatibility with 20 different Android phones. Later
this year, the app will be available to iPhones, Blackberry phones,
and all Microsoft Windows phones. The program is expected to
be released nationwide by the end of 2013.
• 100% NFC based
• The system only currently works in Austin, TX an Salt Lake City,
UT.
• What does Isis have that PayPal doesn’t? Smartposter
• Various companies can issue smartposters, where users of Isis
can open their app and “tap” into special offers and information
that is not available to nonusers.
Sources: http://news.paywithisis.com/wp-content/uploads/2011/08/Merchant_Sell-Sheet.pdf
http://gigaom.com/2013/07/31/isis-expanding-beyond-nfc-the-carrier-backed-payments-service-will-work-with-iphones/
73. bizdevBRIEF
Competitive Landscape: Wirecard vs. PayPal
Only available in Europe Global company
Free to sign up Free to sign up
Connect to your bank and load money into your account Connect to your bank and load money into your account
Once you put at least 10 Euros in your account, you
automatically receive/download a virtual MasterCard debit
card (you’re given a card number and PIN). You can then use
this information to buy anything as long as MasterCard is an
accepted form of payment. No waiting 60 days.
Only US citizens who have a Premier or Business account
are eligible for a PayPal credit card. All others can apply for a
PayPal debit card. You must have been a member of PayPal
for at least 60 days.
1.5% fee on currency conversion/exchange 2.5% fee on currency conversion/exchange
No fee when you receive money Charges a small fee when you receive any money
3% fee for credit card deposits and 1.99% fee for debit card
deposits
$0.30 charge on all other transaction. 1.9% to 2.9% fee if you
have a business or Premier account
• The wirecard group offers its customers products, systems and services regarding
electronic payment.
Sources: http://lowendmac.com/ed/nygren/08ny/paypal-wirecard.html
www.wirecard.com
74. bizdevBRIEF
Competitive Landscape: Braintree vs. PayPal
• Braintree helps online and mobile businesses around the world
accept credit cards by providing a merchant account, payment
gateway, recurring billing, and credit card storage.
• Partnered with LevelUp.
• LevelUp is an app for your smartphone that links your creditcard
to a LevelUp code, which allows you to buy products partnered
with their company.
• LeveUp does not store your credit card information in their
system. They partnered with Braintree to leverage their secure
vault solutions for all credit/debit information storage.
• Their customer service allows you to speak to a real person
rather than get an automated response (PayPal).
• Biggest difference between PayPal and Braintree: Braintree has
revolutionized mobile payments with partnering with companies
such as Uber, HotelTonight and Fab.
• Example: The Uber app allows you to request a black town car,
SUV, or even a regular taxi. You can now log into the app with
your Braintree account. Once the ride is finished, the trip is
automatically billed to your credit card. No swiping. No tip
concerns. And an electronic receipt is billed to your provided
email.
Sources: www.braintreepayments.com
www.thelevelup.com
http://pandodaily.com/2012/07/14/exactly-how-screwed-is-paypal-hint-very/
75. bizdevBRIEF
Competitive Landscape: Square vs. PayPal Here
• Square is a company that provides card readers that plug
into your smartphone or tablet, allowing you to take your
business on the go without having to worry about a credit
card machine.
• Competitive advantage over PayPal Here: a flat processing
rate with no credit card transaction fee.
• Another advantage of Square: it operates better than PayPal
Here on older smartphone softwares.
• No background verification or credit check
Sources: www.squareup.com
http://www.cardfellow.com/blog/paypal-here-vs-square/
77. bizdevBRIEF
International Competitive Landscape: NoChex vs. PayPal
• Mission: to provide online businesses and their customers with the means to
make and accept payments safely and dependably at an affordable price.
• Most important advantage: You have instant access to all your funds rather than
having to wait days to get your money (PayPal).
Sources: http://www.nochex.com/company-news/
http://www.techtoucan.com/paypal-alternatives-29996
78. bizdevBRIEF
International Competitive Landscape: PicPay vs. PayPal
• PicPay is a mobile application based in Brazil that allows
you to scan barcodes on posters, in newspapers, or
wherever, and giving you the opportunity to buy that
item now.
• The idea: giving merchants the buy now option to any
offline/online media.
• Bringing the world of ecommerce away from the
computer.
• Currently the application works on both the iPhone and
Android phones but is only available in Portuguese. The
company expects to release the app to the US, Europe,
and Hong Kong later this year.
Sources: http://thenextweb.com/la/2013/01/03/mobile-payment-startup-picpay-lets-brazilians-make-purchases-via-a-qr-code/
http://www.paymentssource.com/news/picpay-flips-bar-code-model-for-mobile-payments-3012844-1.html
80. bizdevBRIEF
International Competitive Landscape: DigiMo vs. PayPal
• DigiMo is an Israel based mobile payments system.
DigiMo's cloud based Branded Mobile Payment solution
enables retailers to embed mobile payments service into
their own app, under their own brand. By doing so, any
retailer solely retains control over customer data and
relationship and enhances its own brand value.
• Provides companies with a more independent way of mobile
payments rather than having to solely rely on the payment
system provider.
• The app also has a QR scanner that allows the customer to
then pay for the product at the point of sale, whether that
point of sale is equipped with NFC or not.
Sources: http://digimo.biz
http://digimo.biz/2012/03/4-mobile-payment-startups-to-watch/
142. bizdevBRIEF
In the News: Summaries
Win Tickets to see Yeasayer perform at PayPal’s Outside Lands Night show
Paypal teamed up with Outside Lands Summer Festival to provide festival goers with new and awesome way to experience all the
action and fun in Golden Gate Park
PayPal in Bangladesh will be launched in July 2013
PayPal extends offline ambitions in Australia
PayPal's ambitions to extend its business offline have been boosted in Australia through partnerships with local hospitality and
catering outfits EatNow and OrderMate.
CloudBeat 2013: PayPal e,braces open cloud most aggressively
PayPal’s Senior Director of Platform engineering will be the first speaker at CloudBeat 2013.
PayPal accidentally credits man $92 quadrillion
PayPal Global Study Spells Doom for the Wallet
Consumers frustrated by the limitations of cash.
Discover Helps PayPal Reach 2 Million Merchant Outlets by End of 2013
PayPal Partners with Moneygram so you can buy (almost) anywhere even without a credit card
As mobile payments players race to innovate credit cards, PayPal spots an opportunity in the 1 of every 12 American Households
without bank accounts.
142
143. bizdevBRIEF
In the News: 7x7.com 7/30/13
Win Tickets to See Yeasayer Perform at PayPal's Outside Lands Night Show
PayPal is teaming up with Outside Lands this year to provide festival goers with new and awesome ways to experience
all the action and fun in Golden Gate Park. Think an Instagram-powered photo booth, periscopes for concertgoers to
see their favorite musical acts through, and new ways to pay for the festival's delicious food and drinks using PayPal.
Talk about convenient!
But one of the PayPal-powered events we're most excited for is their Outside Lands Night Show featuring psych-pop
banshees Yeasayer. This special show goes down at the Independent on Saturday, August 10. Only Outside Lands
attendees can purchase these tickets, but PayPal and 7x7 want to spread the wealth with everyone (whether you're
going to OSL or not). Winners can come claim their tickets at the PayPal tent on the afternoon of Friday, August 9 or just
head start to The Independent at the 10th and their name will be on the guest list.
143
Soute: https://www.7x7.com/win-it/win-tickets-see-yeasayer-perform-paypals-outside-lands-night-show
144. bizdevBRIEF
In the News: Tuner Post 7/27/13
PayPal in Bangladesh will be launched in July 2013
Finally the wait is over for Bangladeshi tigers and soon they will check the taste of PayPal a premium online e-currency
payment solution of the world. Bangladesh was among one of the unfortunate countries in the world like Pakistan, Iran,
Afghanistan etc where getting verified PayPal account is not available due to some banking issues but now after some
delegations from Bangladesh visited PayPal officials in USA previous month which includes the CEO of BDJOBS.com
Mr. Fahim Mashroor and Senior Vice President at BASIS (Bangladesh Association of Software and Information Services).
The tour was a success in which they had a meeting with senior executives of PayPal at PayPal head office in San Jose,
California USA.
PayPal is no doubt the dream for every professional who works online in order to make money because its the only way
to reach customers all around the world and send/receive payments from them. With PayPal unavailable in your country
you are limited to very few online earning opportunities and hence more frustration for you in this era of economic
recession.
Bringing PayPal in Bangladesh is the result of chain of events held in Bangladesh in last few years including eAsia
Conference 2011, a top ICT event held in Dhaka last year. Later, after a moth of eAsia Conference 2011 officials from
BASIS(Bangladesh association of software and information services) gave an announcement that PayPal has decided to
start their operation in Bangladesh from July 2013.
144
Source: http://tunerpost.com/paypal-in-bangladesh-will-be-launched-in-july-2013
145. bizdevBRIEF
In The News: Finextra.com 7/23/13
PayPal extends offline ambitions in Australia
PayPal's ambitions to extend its business offline have been boosted in Australia through partnerships with local
hospitality and catering outfits EatNow and OrderMate.
The collaboration will enable PayPal's five million Australian users to pay with their digital wallet at the 2000 restaurants
using the Catch Group's online and mobile takeaway ordering site EatNow and with the more than 1000 cafes, bars and
restaurants using the hospitality point-of-sale provider OrderMate.
The latest deal comes on the heels of a partnership with Auatralian start-up Beat The Q, which lets users search for a
nearby café on their phone, check in, browse the menu, place an order and pay.
PayPal's global head of product Hill Ferguson jetted over to Sydney to showcase the firm's offline integration play to
local media:
145
Source: http://www.finextra.com/news/fullstory.aspx?newsitemid=25045
146. bizdevBRIEF
In the News: VentureBeat.com 7/18/13
CloudBeat 2013: PayPal embraces open cloud most aggressively
I’m delighted to announce the first three speakers at our CloudBeat 2013 event in San Francisco on Sept 9-10.
This is our third annual CloudBeat, an event set on debating the trends in the cloud economy over the next twelve
months.
The most disruptive trend is what we’re calling the move to an “open cloud.”
Until this year, everything in the enterprise has remained surprisingly siloed. Even cloud application leader
Salesforce.com has pushed a proprietary database. But now there’s an increasing movement toward open APIs, driven
by companies that need cloud applications to talk with each other, and on-premise apps to talk with cloud apps.
Closed, proprietary businesses that don’t allow easy integration may still garner most of the revenue. But like the
sleeping frog in the frying pan, their time may be running out.
That’s why we’re excited to announce that PayPal Senior Director of Platform Engineering Saran Mandair, who will be
talking about how his company has moved away from proprietary cloud, to embrace the open source OpenStack cloud
infrastructure on an “unprecedented scale” among large companies.
Second, we’ll have Netflix’s director of cloud solutions, Ariel Tseitlin, talk about how that media streaming company
continues to scale its offering. Netflix is the poster child for Amazon’s cloud service. It has shown loyalty to Amazon,
and so unlike other companies hasn’t moved to a multi-cloud infrastructure. But it continues to build its own tools to
augment Amazon’s service, so that Netflix stays up even if some of Amazon goes down. At CloudBeat we’ll talk about
what Netflix is doing, and partners like CloudBees it is working with to augment its infrastructure.
Next, we’ll feature Jeff McMillan, CEO of Dark Matter Labs, which has built a way to secure computing inside Amazon’s
cloud, a highly relevant product given the recent publicity around the NSA’s spying activities. We can’t say too much
about the announcement yet, but it’s very timely, and will fit squarely in our theme of the “open cloud” because it can
operate across clouds.
At CloudBeat, we’ll cut through the cloud hype by gathering real customers who are adopting the cloud in interesting
ways. That way, attendees will learn from the path-breakers who are transforming their businesses with the aid of
cutting-edge cloud products.
146
Source: http://venturebeat.com/2013/07/18/cloudbeat-2013-paypal-embraces-open-cloud-most-aggressively/
147. bizdevBRIEF
In the News: CNN.com 7/17/13
PayPal accidentally credits man $92 quadrillion
When Chris Reynolds opened his June PayPal e-mail statement, something was off.
The Pennsylvania PR executive's account balance had swelled to a whopping $92,233,720,368,547,800.
That's $92 QUADRILLION (and change).
Money that would make Reynolds -- who also sells auto parts on eBay in his spare time -- the richest man in the world
by a long shot.
Rich, as in more than a million times richer than Mexican telecom mogul Carlos Slim. And he's worth $67 billion.
Oh, if only.
"It's a curious thing. I don't know, maybe someone was having fun," Reynolds said.
So he logged online, and reality bit back. His account balance read $0. The correct amount.
PayPal admitted the error and offered to donate an unspecified amount of money to a cause of Reynolds' choice.
"This is obviously an error and we appreciate that Mr. Reynolds understood this was the case," PayPal said in a
statement.
Before this incident, the most Reynolds ever made on PayPal was "a little over $1,000" selling a set of vintage BMW
tires on eBay.
So what would the would-be quadrillionaire have done with all that cash?
"I probably would have paid down the national debt," he said.
147
Source: http://www.cnn.com/2013/07/17/tech/paypal-error
148. bizdevBRIEF
148
PayPal today revealed the findings of a global study that paints a
dim future for the wallet. A vast majority (83%) of respondents
across five countries indicated they wished they didn't have to
carry a wallet. Additionally, nearly one in three Americans (29%)
would choose a smartphone over a wallet if they could only bring
one item when going out.
While American consumers are keen to move to a digital
payment future, the businesses that serve them may be lagging
behind. More than two-thirds of Americans (68%) reported they
have been unable to pay for something because they didn't have
cash with them; for nearly one in three Americans (30%), this has
happened frequently.
PayPal is launching Cash for Registers, a program to help local
businesses to solve this consumer frustration. Next month,
merchants can trade in their registers for innovative technology
that will allow them to accept credit, debit card, check, and
PayPal payments. See more at: http://cashforregisters.com/.
Leave Home Without It
The survey, conducted in the U.S., UK, Canada, Germany and
Australia, found striking similarities in consumer frustration
across the globe. In each country, strong majorities of consumers
reported they wished they could leave their wallet at home.
Specific data points include:
-- Americans are in good company: 86 percent wish they could
leave a wallet at home; Germans, Canadians, Australians and
Brits agreed overwhelmingly (90%, 87%, 80% and 76%
respectively) that they'd like to leave a wallet at home;
-- Canadians are most likely to find themselves unable to make a
purchase because they don't have cash with them (75%);
Germans are the least likely (57%);
-- The UK may be leading the charge towards a wallet-less future
- 32 percent reported they would choose a smartphone over a
wallet when going out if they could only bring one item.
This Summer's Least-Wanted Accessory: The Wallet
With summer approaching, people are planning for days at the
beach, but the study indicates taking a wallet isn't in their plans.
The beach topped the survey in every country as the place most
people wish they could go without a wallet.
-- The gym/exercising followed closely on the list of locations
people wish were wallet-free in every country surveyed;
-- Canadians were most likely to wish they didn't need their
wallet at a bar, while Germans and Americans were most likely to
wish they could attend concerts or sporting events wallet-free;
-- People in every country also listed the Laundromat, grocery
store and restaurants as places they wished didn't need a wallet.
Parking meters are also a source of wallet frustration with nearly
one in five (19%) Americans wishing they didn't need a wallet to
pay. Lucky for them, by using the ParkMobile app, PayPal
enables users to pay the parking meter with their smartphones,
reducing the need for spare change.
(Continue to next page)
In the News: PayPal Global Study Spells Doom for the Wallet, 05/21/13
149. bizdevBRIEF
149
Friends and Funds
Americans' payment frustrations aren't limited to wallets. 54 percent of
Americans reported that they have been "stiffed" by someone, either
intentionally or unintentionally. Victims report this happening most often
for a meal. Since PayPal enables person to person transfers, users are
able to request that money immediately, helping to reduce the chance they
wouldn't get paid (and the likelihood they have to awkwardly hassle a
friend for payment).
While each country reported being most often stiffed on a meal, friends
purchasing coffee and alcoholic beverages were also likely to not be paid
back.
-- Australians are most likely to get stiffed - nearly 6 in 10 (57%) reports
being stiffed; Brits are least likely to get stiffed - but most likely to be
stiffed for a pint;
-- In Germany and Australia, men are significantly more likely than women
to report that they've been stiffed (german:57% men vs. 51% women)
(australia:60% men vs. 54% women);
-- Beware of the young - those under 25 are significantly more likely than
any other age group to stiff their peers.
Change for Spare Change
The wallet's demise may be preceded only by the extinction of the penny.
Earlier this year, Canada ceased distribution of its penny, joining Australia,
New Zealand and other countries that have dropped 1-cent coins because
of rising metal costs and a diminishing need.
In the U.S., a penny already costs more than 2c to produce, but Americans
report their spare change usually isn't used. Nearly 7 in 10 Americans
(66%) report they usually put their spare change in a jar and nearly 10
percent just give it to their kids. PayPal and Coinstar are already working
together to help consumers easily convert that spare change into a PayPal
balance at select Coinstar kiosks nationwide.
-- Americans and Brits are most likely to lose their spare change; Germans
are least likely to lose change;
-- Germans are most likely to carry change with them - nearly three times
more likely than Americans and nearly twice as likely as Brits.
Solving Payment Pain Points
"It's not about replacing cash or your credit card with a new payment
method, it's about using technology to solve real shopping pain points,"
said David Marcus, PayPal President. "PayPal is at the forefront of
developing products that make life easier, help shoppers be more efficient,
and untether consumers from their wallets forever."
Through features like Check In and Order Ahead, the company already
provides its 128 million customers simpler payment experiences. With the
PayPal app, users can use the Check-In feature to pay with just a few
clicks and a picture of their face rather than a wallet. Consumers can also
"order ahead" in select locations in the United States with the PayPal app,
allowing them to pre-order and have their item waiting for them -- already
paid for.
About the Survey
The PayPal Survey was conducted by Wakefield Research
(www.wakefieldresearch.com) among 1,000 credit and debit card holders,
ages 18 and older, in each of the following countries: U.S., U.K., Canada,
Germany, and Australia between April 26th and May 13th, 2013, using an
email invitation and an online survey.
Results of any sample are subject to sampling variation. The magnitude of
the variation is measurable and is affected by the number of interviews
and the level of the percentages expressing the results. For the interviews
conducted in this particular study, the chances are 95 in 100 that a survey
result does not vary, plus or minus, by more than 3.1 percentage points, in
all of the countries, from the result that would be obtained if interviews
had been conducted with all persons in the universe represented by the
sample.
In the News: PayPal Global Study Spells Doom for the Wallet, 05/21/13
Source: http://www.businesswire.com/news/home/20130521006662/en/PayPal-Global-Study-Spells-Doom-Wallet
150. bizdevBRIEF
In The News: Discover Network.com - 5/01/13
Discover Helps PayPal Reach 2 Million Merchant Outlets by End of 2013
Discover today announced it has signed contracts with 50 merchant acquirers that will extend PayPal’s in-store
acceptance to more than 2 million merchant outlets by the end of 2013.
The milestone comes eight months after PayPal announced its intent to create an innovative payment option that
leverages Discover’s payments infrastructure to provide PayPal’s 55+ million active domestic account holders access to
millions of retail stores, restaurants, gas pumps and more.
“With the signing of 50 merchant acquirers to date, we are well on our way toward helping PayPal reach its goals of
acceptance at millions of physical locations in the U.S.,” said Diane Offereins, president of payment services at
Discover. “Our relationship represents the unique abilities we have to leverage our payments assets and infrastructure to
work with emerging payments leaders like PayPal, and we’re proud of the progress we’ve made in such a short time.”
“With Discover’s help we are poised to grow from the 250,000 retailers who accept PayPal in store today to more than 2
million by the end of 2013,” said Don Kingsborough, vice president of retail services at PayPal. “As consumers continue
to use technology to shop in new and exciting ways, we will continue to collaborate with Discover’s acquirer partners to
support the growing needs of their merchants.”
Some of the largest merchant acquirers and processors have already committed to offering PayPal, includingVantiv,
WorldPay, Global Payments, First American Payments, Heartland Payment Systems and TSYS. Other leading acquirers
and processors continue to join on a regular basis.
“We are proud to have given our business owners the opportunity to be the first merchants nationwide to let consumers
use PayPal in stores,” said Tony Catalfano, President and CEO of WorldPay U.S. “With the expanded acceptance
options, our merchants are able to offer more payment choices for their customers, create better opportunities for
engaging customers, help increase sales, and solve problems to make their customers’ experience better.”
150
Source; http://investorrelations.discoverfinancial.com/phoenix.zhtml?c=204177&p=irol-newsArticle&ID=1812700&highlight=
151. bizdevBRIEF
In The News: PayPal partners with Moneygram - 10/23/13
PayPal has partnered with global money transfer company MoneyGram to allow its 117 million users to deposit and
withdraw funds to and from their PayPal digital wallets from any one of MoneyGram's 284,000 physical locations.
The pilot run, which a PayPal blog post says will launch in early 2013, helps the payments giant pare down the number
of steps it takes for a customer to go from "cash to commerce," which should ultimately translate into more purchases,
whether online or offline.
The partnership also gives the 10 million American households without bank accounts access to e-commerce without
requiring traditional banking information, such as a credit card number. A consumer who wants to shop online but
doesn't own a credit card or bank account probably uses a pre-paid card. Through this partnership, they'll be able to
load cash directly into a PayPal account to use anywhere it's accepted.
It's worth noting that MoneyGram also has a money transfer partnership with Walmart, where customers can make in-
store transfers without needing a bank account or credit card. Walmart is also testing Bluebird, a new pre-paid card in
partnership with American Express that targets a similar, lower-income demographic.
PayPal's MoneyGram partnership fits in nicely with its big play to become the payments solution of choice not just on
the web, but anywhere you can shop. In August, it extended the number of brick-and-mortar retailers who accept
PayPal to include all those who accept Discover, also to be in effect beginning in 2013.
151
Source: http://www.fastcompany.com/3002346/paypal-partners-moneygram-so-you-can-buy-almost-anywhere-even-without-credit-card
