Presentation on theme: "Moderator: Pascal Burg, Director, Edgar Dunn and Company Panelist: Roy Vella, Director, Merchant Services, PayPal, Inc. George Eubank, Director, CheckFree."— Presentation transcript:
Moderator: Pascal Burg, Director, Edgar Dunn and Company Panelist: Roy Vella, Director, Merchant Services, PayPal, Inc. George Eubank, Director, CheckFree Martijn Hovinga, CEO, BilltoBill Scot Bealer, Vice President, Worldwide Sales, UATP Session 3: Next Generation Payment Models Sponsored by
2 CONFIDENTIAL & PROPRIETARY 100M PayPal accounts Significant online payment mark Adding 10+M accounts per quarter 15+M seller accounts (2X US V/MC merchants) $32B annualized payment volume (45% YoY growth) 10% of US online consumer e-commerce (5% globally) 30% of payment volume from merchant services (off eBay) 56 countries & 7 currencies 36% of payment volume from International $, £, €, ¥, $CA, $AUS, Yuan $1,000 in volume per second (Q4 05) 1.2M+ transactions daily The Standard for Internet Payments 2001200220032004 Q2Q3 Q2Q1Q4 Q1Q2Q3Q4Q1Q2Q3Q1Q4 2005 Q1Q2Q3Q4 96 Million
3 CONFIDENTIAL & PROPRIETARY PayPal’s Value Proposition Why PayPal’s Different PP “Owns” the Customer Base PP is growing more rapidly than the market (80K plus new members per week) PP provides funding source not available elsewhere - the PP Balance PP is a one-stop-shop to a wide range of payment options PP can be the fastest way to pay online through the merchant-hosted express checkout functionality PP provides customer service to buyers insulating the merchant Relevance to Airlines Incremental ticket sales as PayPal buyers have access to “un- budgeted funds”. Reduced Cost (below traditional credit cards). Consistently low fraud rate. Ease of integration. Break complete reliance on traditional card providers with a relevant alternative.
4 CONFIDENTIAL & PROPRIETARY Leading Global Brands Accept PayPal
5 CONFIDENTIAL & PROPRIETARY Second only to Credit Cards for both Use and Preference Online Payment Methods Used (Past 3 Months Online Shoppers, North America) Credit Card 79% PayPal 43% Debit Card 39% Gift Card 8% COD 1% Bill me later 10% Yahoo! Wallet 1% MS Passport 0% Mailed a Check 7% Other 3% Credit Card 47% PayPal 24% Debit Card 17% Bank Transfer 3% COD 2% Preferred Online Payment Method (North America) Forrester: The Technographics Survey, April 2005 (Sample: 5,051, +/- 1.4% margin of error) AC Nielsen: Global Online Shopping Habits, Oct 2005 (Sample: 21,261, 38 markets, +/- 0.68% margin of error)