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 Q2Q3 Q2Q1Q4 Q1Q2Q3Q4Q1Q2Q3Q1Q 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)