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On Line Commerce, the Digital
Wallet and Beyond …

Dec, 2012
The Shopping Stages

  Intent      Discovery   Shopping        Buying    Payment     Post-Sale



                                                     Core
                Cloud-Enhanced                      Payment
                Capabilities                       Functions
                                                      (SAFE,
                                                     SECURE,
                                                    RELIABLE)




        Demand             Loyalty Card
                                                                  Mobile
       Generation
The Shopping Stages

                                Payment                          Post-Sale



                                                       Core
          Cloud-Enhanced            Strong
                                                     Payment
          Capabilities               Risk
                                                    Processing
                                  management
                                                    Functions
                                  Capabilities




      Demand               Loyalty Card
                                                                   Mobile
     Generation




5                    Confidential and Proprietary
Payments 101




      100$     95$
Payments 101 - KYC




                     BANK
PayPal’s vision



    The world’s
 favorite way to pay
    and be paid




                       8
“PayPal Killers” Created by Partnerships
between Strong Payment Vendors and Large
Consumer Brands




  REACH




                 CAPABILITIES
Traditional Boundaries are Blurring




      Online                  Offline
      world                   world
                   Mobile
The Infrastructure is so Fragmented
Almost Impossible To Make Any Change In The
Existing Payment Infrastructure

                                               Handset
                                              manufacturer




                  Retailer                                                 Handset OS
                                                Issuers




                             merchants                             Acquirers
                                              MC      VI

                                                Other
           Financial
                                                                                NFC reader
          institution
                                    Payment
                                                             PSP
                                      GW




                                 MNO                          POS OS
Incumbents are Consolidation Everywhere
The Cloud will Connect Merchants Everywhere
Reaching New Segments
Mobile POS (mPOS)
The Future Acquiring opportunity




Fixed POS                          Low Cost
                                    mPOS
Merchants of all Sizes Struggling to Keep Up



Multi-                                      Demand
channel            Large merchants
                                          Generation




                  Small and medium size
Global                 businesses            Pace of
competition                               innovation

                     Sole proprietors
The New Consumer is Always Connected
Google Wallet , A New Business Model
from Merchant Discount Rate to CPA
Gift Cards and Coupons Fueling Performance
Base Advertising
The Cloud is Already Used to Store Some of
Our Most Sensitive Information
The Financial Cloud
Who Will Provide my Digital Wallet ?
The Battle for Trust and Identity

          Social Identity   Commerce Identity




                              Mobile Identity
What Will Replace my Leather Wallet ?
The Digital Wallet
The Digital wallet


                        Financial
                       information


                     Demographics




                     authentication
The Digital wallet

                        Storage

                        Financial
                       information


                     Demographics




                     authentication
The Digital wallet

                        Storage

                        Financial
                       information


                     Demographics




                     authentication
Lemon and BillGuard Turning the Digital Wallet
Active
How Will the POS Recognize the Digital Wallet?




                        • payment will not survive as a stand-
                          alone app. It has to be part of a large
                          experience
                        • It's not just about payments, it's the
                          whole experience.
The Digital Wallet
We Aren’t in Kansas Anymore
Did we Mentioned Regulation ?
User Experience is One of the (Only) key
Success Factors
Thank You
Questions?
ozehavi@paypal.com

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The future of On-line commerce and the digital wallet