This document provides an overview and agenda for a workshop on e-commerce in the MENA region. The agenda covers: - The three key phases of successful e-commerce: attract, convert, and retain customers. - An overview of the attract phase, including defining a unique selling proposition, branding, research and marketing. - An overview of the convert phase, focusing on user experience and obstacles to conversion like payment methods. - An overview of the retain phase, including delivery of promises, customer satisfaction metrics, and bringing back return customers. The document also shares some data on the MENA region's economy, demographics, and growth of e-commerce.

1. e-commerce in MENA

2. Objectives of the workshop
 Share our views on the key success factors of e/m-commerce
 Show the growth of MENA’s ecommerce
 Explain what PayPal is and how it works
©2016 PayPal Inc. Confidential and proprietary.

3. Agenda
©2016 PayPal Inc. Confidential and proprietary. 3
Overview of the 3 key phases
Phase 1: Attract
Phase 2: Convert
Phase 3: Retain
E-commerce in MENA
Presentation of PayPal
Conclusion

4. The 3 phases of successful e-commerce

5. What are the 3 phases of a successful e/m-commerce?
5
Convert
Retain
Attract
Marketing /
Lead generation
User Experience
Delivery / Customer
service

6. ATTRACT

7. © 2015 PayPal Inc. All rights reserved. Confidential and proprietary. 7
“If you build it,
they will come”

8. 1. USP and Branding

9. How do you define Innovation? An example in Industrial Goods
9

10. How do you define Innovation? An example in Entertainment
10

11. How do you define Innovation? An example in Transportation
11
07425 551111
****

12. © 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
A sample of « next generation » companies
12

13. 2. Research & Marketing

14. © 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Doing your research
14

15. © 2015 PayPal Inc. All rights reserved. Confidential and proprietary. 15

16. Measuring marketing: KPIs
Channel
Specific KPIs
©2016 PayPal Inc. Confidential and proprietary.
Financial KPIs
Traffic and
Conversion
KPIs
 Traffic KPIs: Visits/Visitors, Bounce
rate, Pageviews, CTR, Pageview Per
Visit, New Visit Ratio
 Conversion KPIs: Conversion Rate,
Lead, Orders, Checkout Funnel Ratios
See next page
 Cost KPIs: CPC, CPM, CPA,
ROI …
 Revenue KPIs: AOV,
Average Item / Order, CLV,
etc.

17. 17

18. I go directly to websites I have used in the
past. 58%
I go directly to websites I know the
web address for. 40%
38%I search for particular brands or
products on a search engine.
I go to sites recommended
by friends/family.
36%
I follow links from
comparison sites.
25%

19. Search
engine
optimisation
(SEO)
How merchants drive CBT traffic (%)
21
26
31 29 27
22
28
24 23
1
Unique,
publically
known
brand
Search
engine
marketing
(SEM)
Marketplace
listings
Marketplace
advertising
Affiliate
marketing
Price /
product
comparison
listings
Social
media
Recommend
-ations
Other
SEO is the most popular method for
driving cross-border traffic (31%)

20. 3. International Audience

21. 50% of online buyers in the world state that
they have purchased across borders

22. LOCAL INTERNATIONAL
They purchase 2x more

23. Consumer electronicsClothing, footwear &
accessories
Entertainment &
education
(digital & physical)
Travel &
transportation
Toys & hobbies
What do they buy?
49% 32% 31% 26%31%

24. Where do they buy from?
25% 19% 14% 11% 5% 4%

25. I don’t want to pay shipping costs. 47%
I want to be sure to receive my item. 41%
36%
It is not clear how much
duties/customs taxes I will have to
pay
I want free returns 35%
They want reassurance on shipping & return
policies

26. 1 out of 2 online buyers would
purchase more if they were
reassured by your check-out page.
1 out of 5 drops purchase if
they are forced to create an
account.
They want a secure payment method

27. Bringing pieces together
Localise for them
Simplify their
Guest checkout
Website language
Purchase currency
Customer support
Payment options
Go mobile
Reassure them
Delivery options and prices
Total landed price
Protection in case of non-delivery
Secure payment
Customer support

28. Learn more about barriers and conversion drivers of international
consumers on PayPal PassPort
©2016 PayPal Inc. Confidential and proprietary.
Reassure your consumers with PayPal Buyer Protection and Refunded
Returns service
Paypal.com/fr/passport
Paypal.com/fr/retoursPaypal.com/fr/buyer-protection

29. 4. Social Media

30. © 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Social Media
30

31. CONVERT

32. © 2015 PayPal Inc. All rights reserved. Confidential and proprietary. 32
“Fasten your seatbelts.
It's going to be a bumpy [ride]”

33. 1. The User Experience

34. Analyzing the Conversion Funnel
©2016 PayPal Inc. Confidential and proprietary.
Prospect base
100% of prospects
10,000 visitors
Product area
60%
Shopping cart
30%
Final order
3%
54 Visitors
complete purchase
Source: Prestashop

35. Customer Journey Map
Research & Planning Product Discovery Ordering Process
Product Shipping &
Delivery
Returns Refunds
Enjoyability Enjoyability Enjoyability
Helpfulness of ecommerce Helpfulness of ecommerce Helpfulness of ecommerce
Enjoyability
Helpfulness of ecommerce
Enjoyability
Helpfulness of ecommerce
Enjoyability
Helpfulness of ecommerce
STAGES
EXPERIENCE

36. Customer Empathy

37. Less is more

38. Multi-Channel
Consistency

39. 2. The Obstacles in the way of Conversion

40. ©2016 PayPal Inc. Confidential and proprietary. 40
Reassure your consumers on their key concerns
1. Does the webstore even deliver to my
country?
2. Is it safe to pay on the website? (46%)
3. What if something is wrong? Can I return it?
Is the return free? (30%)
4. The prices are in USD, what does it cost in
EUR?
Key consumer concern How to lift the barrier
1. Welcome international consumers with geo-
localized pop-up
2. Show PayPal logo on your homepage
3. Tell your PayPal customers that their return cost
is covered
4. Offer foreign consumers prices in their local
currency

41. 3. Payments

42. Fast Checkout

43. Pull the trigger

44. 3. Security

45. Security & Trust
• SSL
• PCI DSS
Buyer protection

46. RETAIN

47. © 2015 PayPal Inc. All rights reserved. Confidential and proprietary. 47
“You can’t
handle the truth”

48. 1. The delivery… of a promise

49. 2. The NPS

50. How is NPS calculated?
50
How likely are you to recommend [Business Name] to a friend or a colleague?
Using the LTR Question
50
% Promoters 9 and 10’s % Detractors 0-6
Net Promoter Score
(NPS)
Very LikelyNot at all Likely
8765 9 1043210
Customer-advocates Disappointed or non-delighted,
possibly spreading bad word of
mouth
Example: 100 surveys
Promoters 80%
Passives 5%
Detractors 15%
80%-15% = 65% NPS

51. What should I consider as Opportunity or Success?
Its a natural desire is to compare ones NPS score to their competitors. A word of caution, most business do not advertise their NPS score. If
they do share, they most likely will not share their methodology. It is important to understand their methodology before comparing your
business to theirs. It is very easy to bias ones results unintentionally by changing how the question is asked, when it is asked, and how the
scale is presented, etc.
Some pitfalls to avoid when asking NPS:
• Don’t offer a N/A option, this will most likely artificially inflate your numbers and you'll mask opportunities
• Consider the customer journey, and survey at the logical point
• Provide an anchor for the scale, nothing more: Not at all Likely for 0 and Very likely for 10. No other instructions on how to score should be
given, don’t mark prompters, passives etc.
• Don’t instruct customer how to respond in the invite, survey or personal interactions. i.e. remember a 10 means your happy, or if I get a 10, I
receive a bonus, etc.
How your NPS changes over time, will be the most reliable indicator of success. Use the information the customers have given, match it
up to any internal metrics you have, find the “sweet spots” in your data that make a loyal customer.
©2015 PayPal Inc. Confidential and proprietary. 51
You are your best competition
What does the number mean?

52. 3. Return customers

53. Important tips to bring back return customers
 Merchandising Tools to show the most fitting product first
 Great filters/navigation options
 Tokenization to save user payment information
 A/B testing (Google website optimizer)
 Visitor tracking, form dropout
 Recommendation engines (3rd party installs)
 GeoIP: Don’t make people go through steps if you know where they are!
 Remember what people have done before
53

54. MENA e-commerce data

55. ©2016 PayPal Inc. Confidential and proprietary.
MENA with $2.9B GDP is larger than India or Russia, but fragmented geographically
and dependent on oil
Rebound in Oil Prices and Economic Diversification expected to
increase growth
3 139
3 182
2 908
3 127
3 376
2 600
2 700
2 800
2 900
3 000
3 100
3 200
3 300
3 400
3 500
2013 2014 2015 2016F 2017F
GDP $ (M)
Fall of Oil
Prices
2 908
1 175
2 308
1 252
1 903
0
500
1 000
1 500
2 000
2 500
3 000
3 500
MENA RU IN AU BR
GDP Comparison $ (M)
*Source : IMF
1 446411
239
254
GDP $ (B)
GCC
N.Africa
Rest
CIS
31350
7500
16300
0
5000
10000
15000
20000
25000
30000
35000
GCC Rest of MENA MENA Avg
GDP Per Capita $

56. Lead by UAE, all players rush to diversify their economy with increased
focus on technology start-ups and infrastructure investments
©2016 PayPal Inc. Confidential and proprietary.
108 107
111 110
114
109
112
114 115
108 107 108
100
105
110
115
120
UAE Consumer Confidence Index
Facts
• Lower oil prices drive need
for diversification
• Increase of tourism influx
• Innovation &
entrepreneurial drives
98
103
101100
103105
9797
90
80
66
54
485048
606059
47454543 41 373434
40
0
20
40
60
80
100
120
Crude Oil
From Fuel
Economy to:
E-Commerce and Digitalization
• Electronic IDs
• Start Up Ecosystem
• National Wallets
• Salary Cards
• Qatar 2030 vision
• UAE Smart Government initiative
• Bahrain 2030 Vision
• Kazakhstan 2050 vison
Infrastructure
• Cable initiatives
• Telecom/Mobile
• Financial Services
• Logistics
Travel and Hospitality
• MICE
• Economic zones
• Airline’s Hub
• Entertainment
Reforms
• Ministers for
happiness and
tolerance in
UAE
*Source : Neilsen, Bloomberg, Frost & Sollivan
• Dubai EXPO 2020
• Doha World Cup 2022
• Unified GCC Visa
• UAE Smart
Government Initiative
• Middle East-Europe
Terrestrial System (MEETS)
(1.400km)
• SEA-ME-WE 5 (20.000km)

57. ©2016 PayPal Inc. Confidential and proprietary.
Young and intercultural demographics
MENA makes up 6% of World’s Population and equals that of European Union
Dynamic young Population
32,1
17,8
38,4
6,7
5
0 10 20 30 40 50
0-14
15-24
25-54
55-64
65+
Egypt age-group %
20,7
13,7
61,5
3,1
1
0 20 40 60 80
0-14
15-24
25-54
55-64
65+
UAE age-group %
Nationals vs. non-Nationals
51,4
179,4128,6
68,6
428M Total Population
GCC
N.Africa
Rest
CIS
48
31
56
14
67
12
52
69
44
86
33
89
0,00
10,00
20,00
30,00
40,00
50,00
60,00
70,00
80,00
90,00
100,00
Bahrain Kuwait Oman Qatar Saudi
Arabia
UAE
• High number of non-Nationals diversify MENA in a cultural,
socioeconomic, and income level.
• Qatar is No.1 with 88.1% using internet and No.2 only to Republic of
Korea (97 percent) for percentage of households with internet
*Source : IMF, UN and National institutes of statistics

58. ©2016 PayPal Inc. Confidential and proprietary.
15%
30%
45%
20%
35%
0%
10%
20%
30%
40%
50%
USA LATAM MENA EUROPE APAC
Global E-Commerce Growth %
MENA’s ecommerce has the highest growth in the world
6 7,8 10,5
15,2
20,6
26,7
33,4
41,7
52
0
10
20
30
40
50
60
2012 2013 2014 2015 2016F 2017F 2018F 2019F2020F
MENA E-Commerce Volumes $ (B)
*Source : E-Commerce Foundation, Visa, Aramex, Payfort
28%
72%
1st time Online Buyers
>2years
<2 years
• Fastest growing e-commerce region in
the world as a result of increase in
internet and credit card penetration
• Saudi Arabia and the UAE contribute to
%65 of e-commerce in the region and
%75 with Egypt
• Consumers are just getting started!
More consumers discovering e-
commerce and growing the base

59. ©2016 PayPal Inc. Confidential and proprietary.
8,2
17,4
40,7
2,6 3,96,8
10,6
15,2
2,4
1,6
0,0
10,0
20,0
30,0
40,0
50,0
UAE KSA Egypt Kuwait Jordan
*Source :A.T. Kearney, eMarketer,
97,40%
2,60%
GCC Retail %
Retail Store
Online Retail
Strong traditional retail limit online adaption but bound to grow
ROOM FOR GROWTH
• $221B Offline vs $15B Online Retail in GCC
• Brick and Mortar Merchants coming online with omni-channel looking to leverage
digitalization cycle
• Internet users are becoming online buyers but lots of room for growth
ROOMTOGROW
85%
15%
MENA Merchant’s Online Presence
Internet Users and Online Shoppers
160M60M
Online Shoppers Internet Users

60. ©2016 PayPal Inc. Confidential and proprietary.
And Mobile represent an enourmous opportunity – one of the regions
to test mobile only strategy
25%
75%
Mobile vs Web Volume
*Source : PayPal, Gemalto, Payfort,
500 900 1300 1800
3000
4150
5700
8000
0
2000
4000
6000
8000
10000
2011 2012 2013 2014 2015 2016 2017 2018
M-Commerce $ (M)
61,23%
50,41%
42,07%
23,71% 19,06%
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
Internet Access Points
41%
21,30%
0%
10%
20%
30%
40%
50%
MENA Global Avg.
Mobile Purchases
MENA consumers with a mobile phone purchase
more with their devices than global average
• Web still leads despite mobile adaption but will quickly chance
• 2.9 avg. smartphones per person in GCC countries!!
• The adoption of m-commerce in UAE is second only to China
48%
34%
6% 6% 2%
0%
10%
20%
30%
40%
50%
60%
Share of Apps installed

61. Presentation of PayPal

62. Two sided network
MERCHANTS &
DEVELOPERS
CONSUMER ENGAGEMENT
Increasing transactions per customer
14,5+ MILLIONS OF
merchants and developers
MORE DATA
More than 1B transactions
per quarter
CONSUMERS
188M
active customer accounts

63. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Starting your business with a normal your business as a start-up is
hard!
63
Normal gateway PayPal
Deposit
 From 5,000$, up to 100,000$
 On average 25,000$
 None
Monthly fee  From 1,000$, up to 5,000$  None
Paperwork
 Dozens of documents,
multiple copies, all hand filled
 None
Sign-up time  Up to 6 months  <5 minutes
Decline rate  Up to 95%  Much lower, depends on markets

64. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
PayPal has partnered with the greatest merchants in the region!

65. Q&A

66. CONCLUSION

67. © 2015 PayPal Inc. All rights reserved. Confidential and proprietary. 67
“May the Force
be with you”

68. Any questions?
etuzun@paypal.com