Presentatie van PayPal tijdens Mobile Convention Amsterdam 2011.

1. m-Commerce is here, now!
Eelco van Wijk, Head of Merchant Services, PayPal Benelux
4/19/2011
€ $
£

2. PayPal represents 18 % of global e-commerce
224 millions accounts worldwide
110 Incl. 67 millions in Europe
2
26
3
12
10
2010 Key figures
 Created in 1998, part of since 2002 5
 $92B in total payment volume (+28%)
 $3B in stored value (PayPal balance) spent
3
every 2 weeks
 Bank License in Europe
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3. How PayPal works
Credit Card
Direct Debit Bank transfer
Bank Transfer
PayPal Balance
Local scheme 2 Withdrawing methods
$ $
PayPal Balance Buyer account Seller account
Funding method
1
3
1 Buyer pays with PayPal – as easy as sending an e-mail
2 PayPal credits the amount
3 Seller sends the shipment / delivers the good or service
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4. m-Commerce is here, now
TRENDS NEW OPPORTUNITIES
 224 million total
accounts worldwide
 available in 190
• Rakuten (Japan) sales already markets
20% via mobile2  supports payments
• m-Commerce to represent
in 24 currencies
20% of e-commerce by 20151
• eBay $2bn m-Commerce in
2010 (vs $600m in 2009)
• Mobile devices will „close the
loop„ by getting customers
• PayPal 2011 mobile forecast:
back into the stores
$2bn (vs $750m in 2010)
1) ABI Reserach; 2) Morgan Stanley
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5. Shopping is the fastest growing usage area on mobile in EU
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6. 24% of iPhone users already buy on mobile today
“Which of the following activities do you do on a mobile phone at least monthly?
Receive SMS alerts 41% 61%
Send/receive MMS (picture messaging) 55%
33%
Send/receive Instant messages (e.g. MSN) 46%
19%
Check news/sports/weather 62%
17%
Taking/recording video 28%
16%
Look up directions or maps 58%
14%
Download applications 63%
13%
Send/receive work email 33%
10%
14% iPhone
Enter a contest or vote via SMS 8%
Average
Watch mobile video/TV 35%
8%
Check flight, bus or train status 30%
7%
Check financial accounts 31%
7%
Research products for purchase 38%
6%
Receive coupons/promotions 15%
5%
Make video calls 9%
4%
Purchase products 24%
4%
None of these 4% 32%
Base: 13, 504 European online consumers aged 16+
Source: Forrester, European Technographics® Online Consumer Technology Survey, Q4 2010
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7. If EU follows US trends, m-Commerce will double
m-Commerce adoption in US twice as high as in Europe, and still growing…
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8. Is European e-Commerce markt ready for the mobile channel?
WEBSHOPS are SMARTPHONE ADOPTION
implementing now no longer a barrier
• 52% (!) of devices sales in EU in Q4
• 41% of top 200 PayPal merchants 2010 were smartphones
expect to have an m-Commerce
proposition EOY
• Demand for Mobile Payments huge
e-COMM FACILITATORS
Verticals: are live or close to it
• Highest m-Commerce engagement:
• Fresh food delivery • All large EU PSP‟s integrating PayPal
• Cinema, Concert & Event Mobile, or already live. i.e. Ogone
tickets
• Flight tickets
• Postcards & flowers
• Fashion
• Digital goods & gaming
• Bottom of the interest curve:
• Most shopping carts
• Tour operators
explore mobile, Magento
• White goods & household
appliances leading way with “instant
app”
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9. m-Commerce will evolve into new areas
Apps Remote commerce Online2offline
Global Mobile Apps
Revenues ($B)
29.0
19.0
11.8
6.8
•Portion of $700B+ e- • Mobile driving store
Commerce migrating to m- traffic with deals
Commerce • Mobile key enabler for
2010 2011 2012 2013 •LBS, time sensitive sales & redemption
ubiquity create incremental • Estimated $1T
Gartner
sales opportunities opportunity
•eBay sold $2B+ in 2010
•Japan showing the way
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10. Mobile will revolutionize (highstreet) retail
Search and decide Pay: when and where Experience the best
it is convenient post shopping journey
Product reviews, prices,
in-store availability Wallet Real time Receipt, CRM
notification
Red Laser
Store Offers Contactless
check-in & Loyalty
Self Checkout
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11. Japan showing the way in “Blurring the line”
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12. How does PayPal act in this new world?
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13. Open Platform lets developers embed at will
Pay with remote control on Philips & Chained payments for Dutch
Samsung connected TV‟s charity org SOS Kinderdorpen
Social Commerce startups 1-click payment for paid content
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14. A separate payment method for every single use case?
THEORY REALITY
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15. PayPal Mobile today & tomorrow
From a smartphone …to a multichannel
application… Wallet
5m consumers engaged
Apps available on iPhone, Android, RIM
All that you have in your leather
Key Features: Send/Request Money, Check wallet: Cash, payments cards, loyalty
balance/History, Bank Transfer, Split Check,
Charity Donation, Mobile Check Capture, Local cards, receipts
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16. From a mobile solution, to a „Wallet in the Cloud‟
From m-commerce… …to any connected devices
500+ merchants live
Android & Navigation
other tablets
Parking
Check Log Review Complete
out in
Available on iPhone, Android, iPad, more in Q2
In-app, mobile web, API
Key Features: Pay, Guest, Subscription, Pre- Kiosk
approved, Auto-redirect
Samsung & Philips TV POS: Bling Nation,
California
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17. But, today is about Mobile…
..and taking away the hurdles in mobile payments is a
key factor for succesfull m-Commerce models
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18. Taking away the m-commerce hurdles
User experience
• Consumers have less patience on mobile devices.
Experience has to be better than the web FAST
• Users are not willing to fill forms on a mobile
device for billing and shipping information
CONVENIENT
• Entering credit card info on a phone still a hassle
Trust & security perception
• Mobile is like the web: open to fraudsters and SECURE
attacks
• Consumers perception is at risk when requesting
to enter financial info into an unknown TRUSTWORTHY
environment
4/19/2011
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19. How PayPal addresses need for speed & convenience
LOGIN REVIEW
Expands to list Expands to change
purchase details funding source
Expands to change
shipping address
Log In using email and
password or phone and pin
Login Review
4/19/2011
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20. Successful m-Commerce example 1: Pathe Cinema‟s in NL
Proposition:
• See all listings, trailers
• Select your movie,
cinema & time
• Pay
• Get QR-code as ticket
Advantages:
• Buy ticket anyplace,
anytime
• No more waiting in line
• Show up last minute
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21. Successful m-Commerce examples 2 & 3: eBay & Nike
Consumers
asked for buying
functionality in
the app
Time sensitive
component
crucial for
auction model
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22. What m-Commerce track should your company choose?
1. Don‟t wait too long…
* learn now
* cherish your most engaged & innovative users
* beat your competitor
2. Phone is the new e-mail
* start collecting customer mobile data now
3. App vs Mobile webshop?
* Go for result, not for ubiquity: iPhone & Android
cover > 90% of usage
* Mobile engagement rules: mobile app > mobile web
4. Think how mobile channel differs from PC
* Lot of focus on Location Based
* „Always On‟ & „Always Close‟ opportunities undervalued
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23. CONCLUDING…
1.M-Commerce is here, now
2.Think before you start… but don‟t think for
too long
3.The lines are blurring, build for openness
4.Guarantee a fast, convenient & secure
user experience
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24. www.x.com www.paypal.com
4/19/2011 THANK YOU
€ $
£

25. PAYPAL MOBILE CONFIDENTIAL AND 25
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PROPRIETARY