© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
If Mobile’s First, what’s left?
#Mobile Day @JoGoyvaerts October 20st 2015
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Be bolt/D Be extremely MOBILE
8
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Acceptance on BeShopping100 webshops
Active users in last 12 months 800k
PayPal in Belgium: Fast Facts
10
63%
Market Share on all online payments 12%
12 12
Voice of the Consumer:
The Millennial Disruption Index*
* The Millennial Index – 2014, Scratch, Viacom Media Networks
BankingHousehold Goods
Discount retail
MobilePersonal Computing
Online
Identifies the industries most likely to be transformed by Millennials, the largest generation in American history.
“I don’t see the difference between my bank and all the others.”
71%would rather go to the dentist than listen to what banks are saying.
53%don’t think their bank of-fers anything different than other banks.
Banking is at the highest risk of disruption. 1 in 3 are open to switching
banks in the next 90 days.
They believe innovation will come from outside the industry.
Nearly halfare counting on tech start-ups to overhaul the way banks work.
73%would be more excited about a new offering in financial services from GOOGLE, AMAZON, APPLE, PAYPAL, OR SQUARE than from their own nationwide bank.
Methodology:The data represented illumi-nates key findings from the Millennial Disruption Index (MDI), a three-year study of in-dustry disruption at the hands of teens to thirtysomethings. Millennials, a generation born 1981–2000 and more than 84 million strong in the U.S. alone, use technology, collaboration and entrepreneurship to create, transform and reconstruct en-tire industries. As consumers, their expectations are radically different than any generation before them. For the MDI, Scratch surveyed over 10,000 Millennials about 73 companies spanning 15 in-dustries. The results paint a clear picture of which brands are loved, which are meeting consumer needs, and which are poised on the brink of disrup-tion. The Index also sheds light on the topline features of com-panies that Millennials rely on and identify with. A business category with a low MDI score is less vulnerable to disruption. For categories with a high MDI, Scratch forecasts disruption is imminent. Scratch is a creative and strate-gic SWAT team that channels the power of Viacom’s portfolio in new ways. For more information and the complete study, contact us at [email protected].
THE MILLENNIAL DISRUPTION INDEX
3 years•
15 categories•
200+ interviews•
10,000+ respondents
All 4 of the leading Banks are among the ten least loved brands by Millennials.
The change will be seismic.
68%in 5 years, the way we access our money will be totally dif-ferent.
70%in 5 years, the way we pay for things will be totally different.
33%believe they won’t need a bank at all.
Love
Risk
©2013 Viacom Media Networks
BankingHousehold Goods
Discount retail
MobilePersonal Computing
Online
Identifies the industries most likely to be transformed by Millennials, the largest generation in American history.
“I don’t see the difference between my bank and all the others.”
71%would rather go to the dentist than listen to what banks are saying.
53%don’t think their bank of-fers anything different than other banks.
Banking is at the highest risk of disruption. 1 in 3 are open to switching
banks in the next 90 days.
They believe innovation will come from outside the industry.
Nearly halfare counting on tech start-ups to overhaul the way banks work.
73%would be more excited about a new offering in financial services from GOOGLE, AMAZON, APPLE, PAYPAL, OR SQUARE than from their own nationwide bank.
Methodology:The data represented illumi-nates key findings from the Millennial Disruption Index (MDI), a three-year study of in-dustry disruption at the hands of teens to thirtysomethings. Millennials, a generation born 1981–2000 and more than 84 million strong in the U.S. alone, use technology, collaboration and entrepreneurship to create, transform and reconstruct en-tire industries. As consumers, their expectations are radically different than any generation before them. For the MDI, Scratch surveyed over 10,000 Millennials about 73 companies spanning 15 in-dustries. The results paint a clear picture of which brands are loved, which are meeting consumer needs, and which are poised on the brink of disrup-tion. The Index also sheds light on the topline features of com-panies that Millennials rely on and identify with. A business category with a low MDI score is less vulnerable to disruption. For categories with a high MDI, Scratch forecasts disruption is imminent. Scratch is a creative and strate-gic SWAT team that channels the power of Viacom’s portfolio in new ways. For more information and the complete study, contact us at [email protected].
THE MILLENNIAL DISRUPTION INDEX
3 years•
15 categories•
200+ interviews•
10,000+ respondents
All 4 of the leading Banks are among the ten least loved brands by Millennials.
The change will be seismic.
68%in 5 years, the way we access our money will be totally dif-ferent.
70%in 5 years, the way we pay for things will be totally different.
33%believe they won’t need a bank at all.
Love
Risk
©2013 Viacom Media Networks
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Incidence of buying online via a mobile phone varies by country
13
North America
Western Europe
Nordics Central, Eastern Europe
Middle East Latin America
Asia Pacific
% online shoppers who have bought via a smartphone in past 12 months
31
19
33 26
21
36 34
17
32 23 21 24 20
26 34 37
53 57
34
46
33
68
0 10 20 30 40 50 60 70 80
US CA UK DE FR IT ES NL CH AT SE NO DK PL RU IL TR UA BR MX AU CN
Multi-country average*: 33% of online shoppers have bought online via a smartphone in the past 12 months
*Multi-country average not weighted by country size.
Indicates ‘headroom’ for further growth in this category, especially in mature markets.
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Mobile commerce fueling e-commerce growth
14
North America
Western Europe
Nordics Central, Eastern Europe
Middle East Latin America
Asia Pacific
34 34 36
46 41
22
48 46 41
45 52 54 55
33 28
39 39 39 46
40 45
52
10 14
10 12 16
11 13 8
12 13 13 11 11 10 14 15 17 13
17 21
12
23
0
10
20
30
40
50
60
US CA UK DE FR IT ES NL CH AT SE NO DK PL RU IL TR UA BR MX AU CN
Mobile commerce CAGR Online commerce CAGR
Estimated Compound Annual Growth Rate (CAGR) 2013-2016
Multi-country average*: Mobile commerce expected to grow at 42%, while e-commerce to grow at 13% (CAGR).
Total online spend includes mobile spend. Mobile includes smartphone and tablet spend. .*Multi-country average not weighted by country size. Refer to appendix for how estimates were calculated.
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Smartphone shoppers tend to be younger than online shoppers…
15
North America
Western Europe
Nordics Central, Eastern Europe
Middle East Latin America
Asia Pacific
53 52 58 60 56 52 48
57 55 57 52 50 61 61
73
51
71
32
61
88
74 86
32 31 34 32 37 39 39 30
39 37 33 34 32
49
64 51
61
30
54
78
45
83
- 10 20 30 40 50 60 70 80 90
100
US CA UK DE FR IT ES NL CH AT SE NO DK PL RU IL TR UA BR MX AU CN
% of smartphone shoppers who are aged 18-34yrs old % of online shoppers who are aged 18-34yrs old
Age histogram: % of shoppers who are aged 18-34yrs old
Multi-country average*: 59% of smartphone shoppers are aged between 18-34yrs old vs 44% of total online shoppers
Smartphone shopper is someone who has used a smartphone to purchase online in the past 12 months. Online shopper is someone who has bought online in the past 12 months via any device. *Multi-country average not weighted by country size. Note: Israel and UAE data is 18-30yrs.
Note on interpretation: 53% of smartphone shoppers in the US are aged 18-34yrs
* *
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Incidence of shopping via an app is higher than via a browser on smartphones in most countries.
16
North America
Western Europe
Nordics Central, Eastern Europe
Middle East Latin America
Asia Pacific
72
55
68 61 58
68 69
49 56 53 50
58 47
63 55
67 65 59 58
73 64
84
54 52 48 46 42 44 56 53 52 52
61 53 51
58 53 58 52 52 54 56 55 50
0 10 20 30 40 50 60 70 80 90
US CA UK DE FR IT ES NL CH AT SE NO DK PL RU IL TR UA BR MX AU CN
Shopped via app % shopped via app and/or browser on smartphone in past 12 months
Multi-country average*: 64% have shopped via an app vs 52% via a browser
Q39a/b. Thinking again about shopping online using your mobile device, which of the following ways have you made a purchase in the past 12 months? Base: Those who have shopped on smartphone in past 12 months. Multi-country average not weighted by country size. Multiple answers mean %s add to more than 100%.
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
“PayPal is Finally Becoming a Mobile Payments Company”
Link to article in qz.com: http://bit.ly/1GnpVo2
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
There’s no such thing as mobile payments.
20
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Don’t Fix what’s not Broken.
21
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Fill Up & Go
23
Diesel or Unleaded? Dry & Warm
in your car
The precise Amount
Faster Process
In control
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
PayPal.Me Pay with your personal url Paypal.me/jogoyvaerts
24
Also for Buffalos
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
How to be Bolt/D? Become Mobile First
25
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Remove all friction on payment
30
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Is this your Mobile Payment Conversion today?
31
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Authenticate Back-End Confirm
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Fix Now Your Mobile Payment Conversion
32
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Authenticate Back-End Confirm
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 33
A B C Authenticate
Who are you?
Back-End
Can I trust you?
Confirmation
Do you buy?
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 34
A Authenticate
Though way: 2 factor
Easy: email pswd
Authenticate in Mobile
1x Sign Up Customer chooses
Sharing Biometrics
Am
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 37
Back-End
Realtime Risk modelling
B Bm
Back-End
Location based Device based
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 38
C Cm
Confirmation
Personalise Concrete &complete
Confirmation
Embedded
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
"You’re going down the highway, and it’s a bit foggy. You’ve got to keep your eyes on the road and your hand on the steering wheel. You can only see so far ahead. If you keep solving interesting problems, you get somewhere you didn’t expect.”
43
Travis Kalanick http://www.fastcompany.com/3050250/what-makes-uber-run
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Act of Paying is gone. There’s only Shopping Experience.
44
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
One Touch across web and mobile web raises the bar.
46
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 47
Go for Gold in 2016
Short Simple Focus
Fun
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 48
Joachim Goyvaerts Head of BeLux [email protected] @jogoyvaerts