The Future of Money:

What’s in Your Digital Wallet?

Tuesday, April 30, 2013

09:30 AM - 10:30 AM

The Beverly Hilton, Los Angeles

Digital wallet: the new era of money

E-commerce

Online

banking

Smartphone

Smart card

and more…

Sources: The Economist, Wikipedia.

Collections have become more electronic – less check,

more debit card

Distribution of the number of noncash payments, U.S.

Source: Federal Reserve Board.

Debit card26%

Credit card23%

ACH15%

Prepaid4%

Checkspaid32%

2006

Debit card35%

Credit card20%ACH

18%

Prepaid5%

Checkspaid22%

2009

Note: ACH stands for Automated Clearing House.

The expected dominant payment methods in the world in 2013

Source: ATM Marketplace and ATMIA.

0

5

10

15

20

25

Chip-stripedebit

Mag-stripedebit

Cash Chip-stripecredit

Mag-stripecredit

Mobile Online Prepaid

Percentof respondents

Technology advancement has paved the way for digital wallet

Number of Internet users

(per 100 people)

Number of mobile cellular subscriptions

(per 100 people)

Source: World Bank WDI.

2000: 7

2011: 33

2000: 12

2011: 86

Online banking increased worldwide Percentage of internet users who accessed online banking websites

Source: comScore.

0

5

10

15

20

25

30

35

40

45

50

World North America Europe Latin America Asia Pacific Middle East-Africa

Percent

April 2011April 2012

Dramatic growth of smartphone users accessing bank

accounts

Europe, July 2011-July 2012

Source: comScore.

0

20

40

60

80

100

120

U.K. France Spain Germany Italy

Percent of growth

U.S. online Cyber Monday spending kept increasing

Source: comScore.

0

200

400

600

800

1,000

1,200

1,400

1,600

2005 2006 2007 2008 2009 2010 2011 2012

US$ millions

Security has been the major concern with using a digital wallet

Percentage of respondents in the U.S. who had concern

Source: comScore.

0 5 10 15 20 25 30 35 40 45 50

Worried about being charged a fee

Privacy

Limited opportunity to use by retailer

Difficult to use, understand/hassle to set up

Not enough details/info

Not useful for me/won't use it

No concern

Security/safety/theft/loss of phone

Percent of respondents

Need to increase the awareness of digital wallet

Percentage of respondents in the U.S. who were aware of digital wallet

Source: comScore.

0

10

20

30

40

50

60

70

80

PayPal Google Wallet

MasterCard PayPass

Wallet

Square Wallet

V.me by Visa

ISIS Lemon Wallet

LevelUp

Percent of respondents

Slides from Mark Lavelle

Session Title: Future of Money—What’s In Your Digital Wallet?

Mark Lavelle

SVP Strategy & Business Development

PayPal

Digital Wallets Are Already Powering Global Commerce

And Must Connect Consumers and Merchants Across All the

Devices That Matter To Them Today…

Source: ComScore

…And Those Devices That May Matter To Them In The Future

Smartphones Are Where PayPal is Seeing Digital Wallet

Behavior Evolving The Fastest

Digital Wallets Will Have More In Them: More Payments Instruments,

More Capabilities, and Will Be Central to Consumers’ Daily Lives

And Watch For Developers To Play A Key Role in The Future

Evolution of Money and Digital Wallets

Thank You