The cycle of innovation is compressingThe cycle of innovation is compressing

Confidential and Proprietary 3

Programming Languages

Customer Experience

Devices

Platform

Seamless Integration

Web Squared Lifestyle

“100 things your kids may never know about” (Wired, 7/09)“100 things your kids may never know about” (Wired, 7/09)

Blake loves sneakers and sells them in Australia. He wants to sell online but struggles with payments.

Problem: • Checks & money orders are slow and inconvenient. • Consumers prefer cards but individuals & very small businesses can’t accept them.

Blake loves sneakers and sells them in Australia. He wants to sell online but struggles with payments.

Problem: • Checks & money orders are slow and inconvenient. • Consumers prefer cards but individuals & very small businesses can’t accept them.

Blake

Solution:• Enable individuals to accept cards

& other payment types• Enable transactions between

distant people who don’t know or trust each other

Solution:• Enable individuals to accept cards

& other payment types• Enable transactions between

distant people who don’t know or trust each other

Electronic payments removed friction in eCommerceElectronic payments removed friction in eCommerce

Confidential and Proprietary 6

Goal: Goal:

Monetize your applications with global

payments capability.

Initial Suite of Services in PayPal’s Open PlatformInitial Suite of Services in PayPal’s Open Platform