the future of payments: how to win in today's crowded ......66% 22% 34% 78% time spent dollars...
TRANSCRIPT
![Page 1: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/1.jpg)
The Future Of Payments:How To Win In Today's Crowded
Digital Marketplace
![Page 2: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/2.jpg)
2
Claim for first online sale ever in 1994*
* The official first purchase online with encrypted credit card payment was actually a CD copy of Sting’s Ten Summoner’s Tales
![Page 3: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/3.jpg)
3
Product-Oriented Innovation
![Page 4: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/4.jpg)
4
And yet. . .
![Page 5: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/5.jpg)
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Customer-Oriented Innovation5
![Page 6: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/6.jpg)
“We are as much a tech company as we are a pizza
company”
-Patrick Doyle
6
![Page 7: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/7.jpg)
7
DRIVING FORCES IN PAYMENTS
Ubiquity User Experience One-Stop Shop Collaboration
![Page 8: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/8.jpg)
8
Mass Adoptionof Mobile Devices
Digitization of Cash
Money is
changing
![Page 9: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/9.jpg)
9
Mobile Drives Trends
Average American
checks their phone
150times per day – when you
aren’t sleeping that’s
once every 6 minutes.
Average person touches
their mobile device
2,617times a day!
![Page 10: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/10.jpg)
10
Using Digital
Banking
Channels To
Interact With
Their Banks
81%Want Their
Entire
Financial
Lifecycle On
Digital
Channels
69%
![Page 11: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/11.jpg)
11
Bus fare Chain grocery shopping Vending machine
Airport Street sellersFood & Beverage
Alipay Offline Ubiquity Examples (QR Code Is Prevalent)
![Page 12: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/12.jpg)
12
OfflineConsumer
Behavior
Changing
OnlineNew
Retail
Emerging
![Page 13: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/13.jpg)
13
![Page 14: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/14.jpg)
©2017 PayPal Inc. Confidential and proprietary. 12
ONLINE DIGITAL WATCH
IN APP/
IN STORE
VOICE
![Page 15: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/15.jpg)
15
Gen Z
Visit Their
Bank Branch At
Least Weekly
23%Interested In
Instant P2P
payments
today
68%
![Page 16: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/16.jpg)
16
DRIVING FORCES IN PAYMENTS
Ubiquity One-Stop Shop CollaborationUser Experience
![Page 17: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/17.jpg)
Source: comScore m-Commerce Measurement, May 2017 Source: Dept. of Commerce, comScore e-Commerce & m-Commerce Measurement, May
2017
Digital commerce sales = desktop + mobile
m-Commerce Share of
Total Digital Commerce Dollars
Mobile Momentum and GrowthIn Q1 2017, Mobile represented 22% of digital commerce sales in the US and is far outpacing eCommerce and overall retail growth
Q1 2017 Y/Y Retail Spending
Growth by Channel
+3%
Total
Discretionary
Retail
+14%
e-Commerce
+43%
m-Commerce
Total Digital
Commerce
reached
$100.1B in Q1
2017
(desktop + mobile
sales)
©2017 PayPal Inc. Confidential and proprietary.
Q3
2015
16%
Q4
2015
17%
Q1
2016
19%
Q4
2016
21%
Q1
2017
22%
Q2
2016
20%
Q3
2016
20%
17
![Page 18: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/18.jpg)
66%
22%
34%
78%
Time Spent Dollars Spent
18
However, there’s still a Conversion Gap with Mobile
Source: comScore Media Metrix Multi-Platform and e-Commerce / m-Commerce Measurement, Q1 2017
Despite its growth, Mobile dollars significantly lag behind its share of digital media time spent
©2017 PayPal Inc. Confidential and proprietary.
Q1 2017 Share of Retail Time Spent vs. Spending by Platform
44%
Gap
Mobile
Desktop
![Page 19: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/19.jpg)
19
Consumer Benefits
• Speed
• Convenience
• Seamless Experience
Fewer screens, fewer clicks, less friction
Merchant Benefits
• High Conversion
• Sales Lift
• LoyaltyOpted-in to use
One TouchTM in thelast year**
64 MILLION+
buyers
![Page 20: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/20.jpg)
Turns ordinary transactions into experiences
20
![Page 21: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/21.jpg)
21
Advanced Segmentation Customer Support Fraud Detection
Process Automation Cybersecurity
![Page 22: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/22.jpg)
22
Financial services is expected to lead AI
adoption
Acquisition of AI companies by technology players has
increased significantly; Google is top acquirer
Source: CB Insights
Top Acquirers
12
acquisitions
8
acquisitions
4
acquisitions
4
acquisitions
3
acquisitions
3
acquisitions
3
acquisitions
Q1’1
2
Q3’1
2
Q2’1
2
Q1’1
3
Q4’1
2
Q2’1
3
Q4’1
5
Q1’1
7
Q1’1
6
Q4’1
6
Q3’1
6
Q4’1
4
Q2’1
6
Q2’1
7
Q3’1
4
Q3’1
5
Q2’1
5
Q1’1
5
Q3’1
3
Q4’1
3
Q1’1
4
Q2’1
4
23
37
19
28
161512
6
16
1098
1210
57
454232
Acquisitions of AI companies by quarter, Q1 2012 – Q2 2017
![Page 23: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/23.jpg)
23
DRIVING FORCES IN PAYMENTS
Ubiquity One-Stop Shop CollaborationUser Experience
![Page 24: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/24.jpg)
24
![Page 25: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/25.jpg)
25
![Page 26: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/26.jpg)
26
Credit Union
Mobile App
![Page 27: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/27.jpg)
27
DRIVING FORCES IN PAYMENTS
Ubiquity One-Stop Shop CollaborationUser Experience
![Page 28: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/28.jpg)
28
WE’VE BEEN GOING THROUGH A STRATEGIC
EVOLUTION OF OUR OWN
![Page 29: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/29.jpg)
29
We See Huge Opportunity
PHYSICAL MOBILE DIGITAL ONLINE
TRADITIONAL RETAIL
Commerce
Enablement
PaymentsACQUIRERS & POS TERMINALS
Transfer NETWORKS
Credit CBT
SavingsBANKS/ISSUERS
ALTERNATE SAVINGS
TECH
ONLINE LENDERS
![Page 30: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/30.jpg)
©2017 PayPal Inc. Confidential and proprietary.
Our Vision
SECURITY
GLOBAL
World’s Leading Open Digital Payments Platform
DATA *
17M MERCHANTS 193M CONSUMERS
29
![Page 31: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/31.jpg)
EXPANDING STRATEGIC PARTNERSHIPSLeveraging the industry’s collective assets to advance the digitization of payments
30
![Page 32: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/32.jpg)
Democratizing Financial Services
32
• 7.7 billion mobile connections
worldwide1
• 2 billion adults around the world
don’t have a bank account2
• $138 billion is being spent by the
underserved to manage financial
lives3
• FDIC says that 1 in 13 or 25 million
US households are underbanked
Financial services is ripe for disruption
![Page 33: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/33.jpg)
33
“World’s Best Container Company”
Ball Corporation
![Page 34: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/34.jpg)
"We used to be a pizza company that sells online, and we needed to become an e-commerce company
that sells pizza"
-Dennis Maloney
34
![Page 35: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/35.jpg)
In what business is your credit union???
35
![Page 36: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/36.jpg)
![Page 37: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/37.jpg)
Appendix
37
![Page 38: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/38.jpg)
38
Our strategy is to continue strengthening our core propositions to merchants and consumers, reinforcing our two-sided network
CONSUMERSMERCHANTS
Two –sided network
• Helping merchants take
full advantage of the
movement toward mobile
commerce
• The operating system for
digital commerce
• Moving from being a
button to being a rich
global platform company
• Powering 100% of digital
checkout
• Offering next generation
financial services that are
better and more cost
effective
• Building our compelling
payments proposition across
contexts
• Offering simple, secure
payments across devices
• Providing access to
merchants globally; also
providing access to other
consumers globally (P2P,
etc.)
Bringing merchants and
consumers together,
drawing on our proprietary
data in a secure and safe
way
![Page 39: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/39.jpg)
©2017 PayPal Inc. Confidential and proprietary.
Being a customer champion company means giving our mutual customers
choice and optionality in where and how they want to pay
CUSTOMER CHOICE
![Page 40: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/40.jpg)
40
Increasing engagement with consumers
Growing share with core products
Expanding to capture 100% share of checkout for merchants
In new and different channels
Expanding financial services
offering
BILL PAY
The
Flywheel Effect
![Page 41: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/41.jpg)
PayPal Connects Consumers and Merchants
©2016 PayPal Inc. Confidential and proprietary. 41
• World class brand
• 179M global customers
• #1 in security
• Fast easy online /mobile payments
• Customer First
Trusted Digital Wallet
• Braintree platform enabled
• Credit Card Processing
• Freedom of Payment Choice: Accept PayPal, Credit Cards, Bitcoin, Apple Pay andemerging options
Agnostic Payment Enabled
• Merchant Centric Solutions
• Technology Leader
• White Label / Retailer Branded Mobile App
• Innovative Solutions
Innovative Technology Partner
![Page 42: The Future Of Payments: How To Win In Today's Crowded ......66% 22% 34% 78% Time Spent Dollars Spent 18 However, there’s still a Conversion Gap with Mobile Source: comScore Media](https://reader033.vdocuments.us/reader033/viewer/2022042923/5f6fd81b7bef2a401a1f7855/html5/thumbnails/42.jpg)
Buy-Online Pickup In Store is growing in popularity!Overall, buy online, pick up in store us has grown nearly 43% since 2015
©2017 PayPal Inc. Confidential and proprietary.
http://now.jda.com/ConsumerSurvey2017
Source: JDA 2017 Consumer Survey of 1,058 US consumers aged 18+
10