MARCH 10, 2011
Growing Your Business With PayPal
GLOBAL CUSTOMER FOOTPRINT
• 94M active accounts• 190 markets + 20 local language sites + 24 supported
currencies
MAINSTREAM CHECKOUT OPTION
• 72% of U.S. online buyers have a PayPal account (Source: Forrester 2009)
• Off eBay volume now exceeds on eBay spend• PayPal’s Total Payment Volume in 2010
represented nearly 18% of global ecommerce!*
SIGNIFICANT VOLUME OF PAYMENT PROCESSING
• PayPal transacted over $3,380 every second in 4Q• Approximately $3 billion of stored revenue flows
through PayPal accounts every 2 weeks• Small merchants typically see a lift of 15% or
more to their website sales when they add PayPal
LEADING CREDIT & FRAUD CAPABILITIES
• Industry leading risk management• Years of fraud expertise
SINGLE COMPANY PROVIDING CUSTOMER CHOICE
• Single merchant facing organization• Variety of payment products to assist merchants
in growing sales
PayPal, a leader in payments
*
*Based on Forrester estimates of the top 12 global e-commerce markets
Analysis of 2009 Online Spending$ Billions
$246 Billion is Spent Online Annually
$246
Online Spending
Travel29%
Auto7%
Other41%
Apparel9%
C&E14%
$71
$101
$17$34
$22
Source: Forrester Research, PhoCusWright & Internet Retailer
55%
69%
51%
20%
22%
11%
24%
17%
6%
PayPal is second in online usage, only to Visa
All Others
When was the last time you used each of the following payment methods to purchase something online? (% used past 12 months)
Source: 2009 PayPal Brand Tracker, GfKBase: Total Population
04/12/2023 5
Consumers choose PayPal because of the 3 C's
Confidence According to Gartner, U.S. online consumers trust PayPal more than
Visa or MasterCard
Convenience PayPal Express Checkout allows users to checkout in fewer steps,
without entering their billing or shipping information
ChoiceBy checking out with PayPal, consumers can access a variety of
payment/funding options through a single access point
PayPal stores consumers’ financial information and keeps it safe. PayPal sends the money – but never shares their information
Consumers choose from multiple funding sources to pay for a purchase
Credit Card
Bank Account
PayPal Balance
The money goes immediately to online merchants—regardless of which funding source consumers chose
How does PayPal work?
$3 BILLION IN PAYPAL ACCOUNT STORED VALUE IS SPENT EVERY TWO WEEKS
PayPal drives sales for merchants big and small
“What gives you an edge in competition is offering the best and greatest variety of choices to the customer. You can’t afford not to have a payment option that your customer’s looking for because they can find it at the next site in a heartbeat”
Danny Lee, SVP
“We brought PayPal in here and it increased our sales and cut our transaction costs in half. PayPal is simply a best practice; you have to have PayPal on your site.”
Daniel Keane, President
“We are growing from 35 to 40% a year, and part of that success is due to making the transaction process flow smooth and easy. Simply positioning the PayPal logo strategically has made a great deal of difference. We get about 25% of our transactions using that payment method.”
Denis Boyton, cofounder
“Once we made the switch, we saw sales increase 20%. When people see the PayPal logo, it builds their confidence and they are more willing to make their purchase with our company.”
Martin Zadorian, CEO
“Partnering with PayPal during the holiday season to offer our customers significant promotions is a great way to bring value to both Toys ’R Us and the PayPal customer. In particular, we experienced very strong conversion on our PayPal holiday checkout promotions.”
Michael Scharff, GM, Toysrus.com
04/12/2023 8
With PayPal, BikeWagon Shifts Payments into High Gear! BikeWagon provides high-performance,
name-brand bike parts and accessories at discount prices to customers around the world.
PayPal Means Growth George Majors, one of the site’s founders, explains
that without the help of PayPal, the retailer would have had a difficult time growing. “As we expanded, we needed a more robust payment system,” he explains. That’s when BikeWagon added Website Payment Pro and Express Checkout. With Website Payments Pro for credit card transactions, customers remain on BikeWagon’s site; and because they have a pre-integrated cart, full control of the customer experience is maintained throughout the entire shopping process. Also, for PayPal transactions, with PayPal Express Checkout, customers check out quickly with only three clicks, and then are returned to Bikewagon.com for up-sell, cross-sell, and marketing opportunities.
“Our business has doubled every year since we
started. Part of that goes back to our
ability to take PayPal.” —George Majors,
BikeWagon Founder
04/12/2023 9
For SimplyEyeglasses.com, PayPal Builds Trust, Fashionably Fights Fraud
The Coral Springs, Fla.-based retailer provides a variety of designer, name brand, and special purpose frame styles as well as a multitude of lens types ensuring that every customer will be able to find exactly what they seek.
“Because we work with fashion that is often counterfeited, the number one question we get from customers is whether or not our merchandise is authentic,” says Keith Fritz, President at
SimplyEyeglasses.com.
“That’s why picking the right payment partner is so crucial for us. New customers may not know who we are, or if we’ve only been open for a day or ten years,” Fritz adds. For all of those reasons, Fritz needed to pick a payment provider that would help to instill a level of trust in SimplyEyeglasses.com’s customers, as well as to help minimize any fraud the company might suffer.
“PayPal was the obvious choice for us; some of the primary reasons we chose PayPal were its widespread familiarity, brand recognition, and ability to fight fraud,” Fritz says.
All-in-one payment processing solution – Website Payments Pro
With Website Payments Pro US* you can accept:
Key Features Include:• Account manager – manage your account, track sales trends, create reports• Integration – already integrated with virtually all popular shopping carts• Security - Automatic fraud screening• Transparent and simple pricing – No set up, early termination or cancellation fees.
No monthly minimum processing fees/requirements. • Virtual Terminal – process orders taken by phone, fax or mail without a credit card
swipe machine• PayPal Express Checkout – boost sales by tapping into 94 million active PayPal
shoppers
Optional add-ons:• Recurring Payments — Create profiles and payment information to facilitate
recurring payments• Fraud Management Filters — additional tools to help identify potentially fraudulent
transactions*Discover not accepted in Canada
Gain new customers and drive sales with PayPal Express Checkout
Better for Buyers
Gives buyers a faster way to pay
Provides convenience and security
Allows customers to utilize variety of payment types - PayPal balance, bank account, or credit card
Better for Business
Access 94 million active online shoppers
17% lift in sales*
A flexible payment solution for retailers large and small
$3 billion of stored revenue moving through PayPal accounts every 2 weeks
Website Payments Pro comes with Express Checkout – PayPal’s premier checkout solution
• Increase conversion by streamlining the checkout process for buyers• Gives you the fastest, easiest way for buyers to pay with PayPal
*Based on a study by IPSOS in Q2 2010, a side-by-side comparison of PayPal's processing fees vs. competitors' processing fees among 88 randomly selected small and medium sized businesses processing up to $15 million per year online.
In 2010, Ipsos conducted a study on nearly 800 small to medium sized merchants that currently had PayPal Express Checkout.
• Over 80% of merchants who offer PayPal’s Express Checkout noticed an increase in their sales (see Figure 1).
• Overall increase in sales averaged 17%
• Of those who noticed an increase 84% noticed an increase in sales within 3 months of launching PayPal (see Figure 2).
Research proves PayPal Express Checkout drives sales
83%Have Increased
Sales
Figure 1
% of with Increased Sales
Figure 2
Length of Time Before Noticing Increase
84% Within 3 Months
Based on a study by IPSOS in Q2 2010, a side-by-side comparison of PayPal's processing fees vs. competitors' processing fees among 88 randomly selected small and medium sized businesses processing up to $15 million per year online.
Research firms confirm the benefit of PayPal
Confidential and Proprietary 13
• Over 75% of merchants feel Express Checkout was worth the installation
• Merchants saw between 26 – 40% of sales going through Express Checkout
• 39% saw an increase in sales2010 Mercator study of 100 small – to medium sized businesses that use both Website Payments Pro and
Express Checkout
• Average sales lift across the five merchants is 25%
• Safety is by far the top driver of way customers select PayPal, followed by convenience
2010 Northstar survey of customers that completed transactions at 15 small businesses that utilize Website Payments Pro and Express Checkout
PayPal customer experience
CUSTOMERS SIMPLY ENTER THEIR PAYPAL PASSWORD AND CONFIRM STORED BILLING/SHIPPING/FUNDING INFORMATION
Step 1: Log Into PayPal Account Step 2: Confirm Purchase Information