2. PayPal, a leader in payments * *Based on Forrester estimates of the top 12 global e-commerce markets
3. $246 Billion is Spent Online Annually Analysis of 2009 Online Spending $ Billions $246 $71 $101 $34 $17 $22 Online Spending Source: Forrester Research, PhoCusWright & Internet Retailer
4. PayPal is second in online usage, only to Visa When was the last time you used each of the following payment methods to purchase something online? (% used past 12 months) All Others Source: 2009 PayPal Brand Tracker, GfK Base: Total Population
5. Consumers choose PayPal because of the 3 C's Choice By checking out with PayPal, consumers can access a variety of payment/funding options through a single access point Convenience PayPal Express Checkout allows users to checkout in fewer steps, without entering their billing or shipping information Confidence According to Gartner, U.S. online consumers trust PayPal more than Visa or MasterCard 3/17/2011 5
6. $3 BILLION IN PAYPAL ACCOUNT STORED VALUE IS SPENT EVERY TWO WEEKS PayPal stores consumers’ financial information and keeps it safe. PayPal sends the money – but never shares their information Consumers choose from multiple funding sources to pay for a purchase The money goes immediately to online merchants—regardless of which funding source consumers chose Credit Card Bank Account PayPal Balance How does PayPal work?
7. PayPal drives sales for merchants big and small “What gives you an edge in competition is offering the best and greatest variety of choices to the customer. You can’t afford not to have a payment option that your customer’s looking for because they can find it at the next site in a heartbeat” Danny Lee, SVP “We brought PayPal in here and it increased our sales and cut our transaction costs in half. PayPal is simply a best practice; you have to have PayPal on your site.” Daniel Keane, President “Partnering with PayPal during the holiday season to offer our customers significant promotions is a great way to bring value to both Toys ’R Us and the PayPal customer. In particular, we experienced very strong conversion on our PayPal holiday checkout promotions.” Michael Scharff, GM, Toysrus.com “We are growing from 35 to 40% a year, and part of that success is due to making the transaction process flow smooth and easy. Simply positioning the PayPal logo strategically has made a great deal of difference. We get about 25% of our transactions using that payment method.” Denis Boyton, cofounder “Once we made the switch, we saw sales increase 20%. When people see the PayPal logo, it builds their confidence and they are more willing to make their purchase with our company.” Martin Zadorian, CEO
8. With PayPal, BikeWagon Shifts Payments into High Gear! BikeWagon provides high-performance, name-brand bike parts and accessories at discount prices to customers around the world. PayPal Means Growth George Majors, one of the site’s founders, explains that without the help of PayPal, the retailer would have had a difficult time growing. “As we expanded, we needed a more robust payment system,” he explains. That’s when BikeWagon added Website Payment Pro and Express Checkout. With Website Payments Pro for credit card transactions, customers remain on BikeWagon’s site; and because they have a pre-integrated cart, full control of the customer experience is maintained throughout the entire shopping process. Also, for PayPal transactions, with PayPal Express Checkout, customers check out quickly with only three clicks, and then are returned to Bikewagon.com for up-sell, cross-sell, and marketing opportunities. “Our businesshas doubledevery yearsince we started. Part of that goes back to our ability to take PayPal.” —George Majors, BikeWagon Founder 3/17/2011 8
9. For SimplyEyeglasses.com, PayPal Builds Trust, Fashionably Fights Fraud The Coral Springs, Fla.-based retailer provides a variety of designer, name brand, and special purpose frame styles as well as a multitude of lens types ensuring that every customer will be able to find exactly what they seek. “Because we work with fashion that is often counterfeited, the number one question we get from customers is whether or not our merchandise is authentic,” says Keith Fritz, President at SimplyEyeglasses.com. “That’s why picking the right payment partner is so crucial for us. New customers may not know who we are, or if we’ve only been open for a day or ten years,” Fritz adds. For all of those reasons, Fritz needed to pick a payment provider that would help to instill a level of trust in SimplyEyeglasses.com’s customers, as well as to help minimize any fraud the company might suffer. “PayPal was the obvious choice for us; some of the primary reasons we chose PayPal were its widespread familiarity, brand recognition, and ability to fight fraud,” Fritz says. 3/17/2011 9
23. $3 billion of stored revenue moving through PayPal accounts every 2 weeks*Based on a study by IPSOS in Q2 2010, a side-by-side comparison of PayPal's processing fees vs. competitors' processing fees among 88 randomly selected small and medium sized businesses processing up to $15 million per year online.
26. Of those who noticed an increase 84% noticed an increase in sales within 3 months of launching PayPal (see Figure 2).83% Have Increased Sales Figure 1 Length of Time Before Noticing Increase 84% Within 3 Months Based on a study by IPSOS in Q2 2010, a side-by-side comparison of PayPal's processing fees vs. competitors' processing fees among 88 randomly selected small and medium sized businesses processing up to $15 million per year online. Figure 2
30. Safety is by far the top driver of way customers select PayPal, followed by convenience2010 Northstar survey of customers that completed transactions at 15 small businesses that utilize Website Payments Pro and Express Checkout
31. Step 2:Confirm Purchase Information Step 1:Log Into PayPal Account CUSTOMERS SIMPLY ENTER THEIR PAYPAL PASSWORD AND CONFIRM STORED BILLING/SHIPPING/FUNDING INFORMATION PayPal customer experience