7. NOT ALL METHODS ARE CREATED EQUAL
Usage Online
Mobile
E-Bank Transfers
Consider to
Wallets
Large
Offer PayPal
Potential for Growth
Pre Paid
these Tomorrow
Utility Billing
Need to Offer
these Today
Cash Debit Cards
Moderate
Phase out
Cheques Credit Cards
Small Large
Current user base
7 7 #Finance4SUB Understanding key ecommerce and payment trends
8. SO WHAT TO CONSIDER WITH ONLINE PAYMENTS?
• 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?
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9. BECOMING THE UK ONLINE PAYMENT
STANDARD
CONSUMER INTERNET PAYMENTS BY METHOD 2009
OTHER
6%
Continued growth in the shares of
payments made through PayPal and PAYPAL
by debit card 19%
CREDIT
CARD
39%
Correspondingly, the share of
payments made by credit card has
been falling
PayPal’s estimated share of
consumer internet payments DEBIT
rose to 19% in 2009 CARD
36%
TOTAL NUMBER OF PAYMENTS : 711 MILLION
Source: Payments Council: UK Payments Markets 2009 Report
9 #Finance4SUB OPPORTUNITIES FOR GROWTH
10. WHAT IS PAYPAL
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
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11. HOW DOES PAYPAL WORK?
BUYERS CAN PAY WITH:
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12. EU SHOPPERS – PAYMENT PREFERENCE
Alternative payment methods to credit cards are essential for success in Europe
“Which payment method(s) do you prefer when you buy products online?”
Credit card 40% 60% 35% 26% 51% 51% 19% 34%
Electronic bank transfer 26% 3% 3% 56% 20% 14% 43% 43%
Debit/payment card 24% 43% 57% 3% 14% 10% 14% 17%
PayPal 23% 35% 16% 22% 14% 26% 11% 11%
Cheque/accept giro 19% 5% 17% 31% 2% 19% 37% 13%
Cash 10% 3% 3% 10% 32% 19% 16% 24%
Source :: Forrester Research Inc
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13. LEADING BRANDS IN THE UK ACCEPT PAYPAL
Retail
Electronics
Travel and Event Tickets
Gaming
Other
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14. PAYPAL OFFERS A RANGE OF PAYMENT
SOLUTIONS
Website Email
Express Website
Payments Virtual Terminal Payments/
Checkout Payments Pro
Standard Send Money
Our Express Just add a
The complete, all- Accept credit and
payment button Easy way to send
Checkout option in-one online debit card
to your site and and receive
allows you to add payment solution. payments over
you will be able money, with or
the familiar the phone, fax or
to accept without a
PayPal button – a mail orders.
payments from all website.
magnet for • Allows you to
regular PayPal around the world.
accept card
customers. payment directly • It's like a card
• Request money
on your website swipe machine in
• Hosted by
without redirects retail outlets, but • Send an invoice
• A simple, 3-click PayPal – PCI
all done online
• No need for a Compliant • Send money via
process to buy
separate • No technical email
• Get up to 14% • You can get up
Merchant integration
and running in • Mass Pay
more sales Account needed
minutes
14 OPPORTUNITIES FOR GROWTH
15. 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
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16. DRIVING INCREMENTAL SALES: SALES LIFT
SURVEY
Over 30,000 consumer transactions were surveyed after making a purchase
using PayPal with various large online merchants
Would you have made this If no, Why do you say
purchase if PayPal had not you would not have
made this purchase if
been offered as a payment
you had not been able
option? to pay with PayPal?
Yes No
Multiplying the survey results by PayPal's share of
checkout quantifies the incremental sales lift
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17. SAMPLE OF SURVEY RESULTS
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
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
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18. SECURITY AND CONVENIENCE: TOP
DRIVERS OF SALES LIFT
70%
60%
50%
40%
30%
20%
10%
0%
Security Convenience Balance Loyalty
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
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19. OUR FEES
PayPal pricing banded
according to merchant volume
with PayPal
No Setup costs
No Monthly Fees
No Cancelation Fees
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20. HOW TO ENABLE PAYPAL
The majority of website platforms in the
UK already support the PayPal
Website
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 Payment
available as add-ons Pages
Main UK Payment gateways already
support PayPal functionality
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21. THANK YOU
21 #Finance4SUB OPPORTUNITIES FOR GROWTH
