Upload
roberto-grossi
View
1.323
Download
2
Tags:
Embed Size (px)
DESCRIPTION
Presentation from "The future of Cards and Payments 2008".
Citation preview
Confidential and Proprietary
Driving Incremental Internet SalesIEA & Marketforce: The Power of Payments
London, July 3rd 2008
Confidential and Proprietary 2
Agenda
• PayPal introduction
• Addressing the three biggest problems in e-commerce payments
• The merchant benefit: incremental sales
Confidential and Proprietary 3
5 1223
40
64
96
133
175
2000 2001 2002 2003 2004 2005 2006 2007
� Founded 1998 and acquired by eBay 2002
� Facilitates online payment by card, bank, and balance
� Operates in EU under a Luxembourg bank license
� $47B total payment volume (33% growth) in 2007
� 190 markets & 44% of revenue from outside U.S.
� #1 EU and UK financial website (Nielsen)
� 120,000+ European merchant websites
� 50M+ European accounts
� ~10% of global e-commerce
PayPal overview
Millions of PayPal user accounts57M accounts active during 2007
Confidential and Proprietary 4
Agenda
• PayPal introduction
• Addressing the three biggest problems in e-commerce payments
• The merchant benefit: incremental sales
Confidential and Proprietary 5
The three biggest online payment problems
Checkoutabandonment
Concern aboutprivacy, security,
and safety
Choice of allpreferred payment
methods
50%don’t
complete
24%seek
alternatives
40%very
concerned
Sources: Shop.org/Forrester, 2007; Forrester, 2007; Jupiter/PayPal, 2008
Confidential and Proprietary 6
Problem #1: checkout abandonment
46%52% 51% 50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Web-based Store-based Catalog-based Average
Checkout abandonment
Source: Shop.org/Forrester, State of Online Retailing 2007
Need for easier checkout
• 31% of shoppers prefer to shop at stores that don’t require them to retypetheir name, address, and card number.
• 48% of shoppers prefer usingalternative payments because they aremore convenient.
50%conversion
Entername andpersonalinfo
Enterbuyeraddressdata
Enterdeliveryaddress data
Entercard
securitydata
Confirmbasket
Processpayment
Entercard
number &date
Addshippingcosts
Login to PayPal
Review payment
MerchantCheckout
80%conversion
Source: JupiterResearch/PayPal, “Confidence, Convenience, Choice”, 2008
Confidential and Proprietary 7
Problem #2: concern about privacy, security, and safety
62% 61%
44% 40% 40%
17%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
UK FR ES Average IT DE
Online shopping privacy concern
Source: Forrester, Security Concerns Impact European OnlineBehavior, July 2007; % shoppers rating themselves (very) concerned
“I like the security that PayPal offers. I don’t like giving my card
details out directly to any company.”
Payment accounts protect financial info
12% of Europeanadults (21% of
internet users) avoidshopping online due to
security concerns.Source: Eurostat,
Feb 2008
Confidential and Proprietary 8
Problem #3: choice of preferred payment methods
Payment Methods
Cards:Bank: US,CA,UK,DE (EFT,ELV,giropay) ,FR,ES,NL,CH,AUBalance: 65 countries
Confidential and Proprietary 9
Agenda
• PayPal introduction
• Addressing the three biggest problems in e-commerce payments
• The merchant benefit: incremental sales
Confidential and Proprietary 10
1-5% incremental sales for the largest merchants;5-25% incremental sales for medium-sized merchants*
% that would not have
bought without PayPal
PayPal’s % share of
merchant’s sales
Methodology: Over a two-week period, 100% of PayPal buyers from leading European websites were asked, “Would you have made your purchase from [this merchant] if PayPal had not been offered as a payment option?”
Incremental sales
x =
UK large retailers
Boots, eBuyer, Envisage, Expansys, Photobox, SVP
25%24%14%25%23%66%
10%12%22%14%15%7%
2.5%2.8%3.1%3.5%3.5%4.6%
France/Italy/Germany retailers
France – Aquarelle, BrandAlley, Cdiscount, Fnac, Meetic, Pixmania
Germany - Blume2000, Buch.de, Computer Universe
Italy - Mr. Price, 3, Yoox
21%19%30%18%30%32%22%36%57%42%27%28%
2%5%3%8%5%6%
10%7%5%8%
20%30%
0.4%1.0%1.0%1.4%1.5%1.9%2.2%2.4%2.8%3.4%5.4%8.4%
* Sources: comScore (14% US SMB), IZH4 study (7-13% Germany), PayPal consumer and merchant surveys
Confidential and Proprietary 11
4%
17%
30%
42%
7%
0% 20% 40% 60%
Other
Loyalty
Payment Methods
Convenience
Safety
Drivers of incremental sales from PayPal
All Respondents(474)
%Privacy – not sharing info 27Trust PayPal/PayPal is reliable 11PayPal Buyer Protection 4
%No need to retype details 24Just a few clicks 5Keep track of payments 1
%Wanted to use PayPal balance 7Don’t have credit card 4Couldn’t use preferred card 3Wanted to use bank account 2Cross border payment 1
Confidential and Proprietary 12
Merchants of all sizes adopting PayPal
10 of top 50
15 of top 50
15 of top 50
120,000+ activeweb merchants