Transcript Slide 1

Sponsored by
Session 3: Next Generation Payment Models
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
The Standard for Internet Payments
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100M PayPal accounts
Significant online payment mark
Adding 10+M accounts per quarter
15+M seller accounts (2X US V/MC merchants)
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$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)
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56 countries & 7 currencies
36% of payment volume from International
$, £, €, ¥, $CA, $AUS, Yuan
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$1,000 in volume per second (Q4 05)
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1.2M+ transactions daily
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Million
Q2
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Q4
2001
CONFIDENTIAL & PROPRIETARY
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PayPal’s Value Proposition
Relevance to Airlines
Why PayPal’s Different
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PP “Owns” the Customer Base
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PP is growing more rapidly than
the market (80K plus new
members per week)
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Incremental ticket sales as
PayPal buyers have access to “unbudgeted funds”.
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Reduced Cost (below traditional
credit cards).
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PP provides funding source not
available elsewhere - the PP
Balance
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Consistently low fraud rate.
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PP is a one-stop-shop to a wide
range of payment options
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Ease of integration.
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Break complete reliance on
traditional card providers with a
relevant alternative.
PP can be the fastest way to
pay online through the
merchant-hosted express
checkout functionality
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PP provides customer service
to buyers insulating the merchant
CONFIDENTIAL & PROPRIETARY
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Leading Global Brands Accept PayPal
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Second only to Credit Cards for both Use and Preference
Online Payment Methods Used
Preferred Online Payment Method
(Past 3 Months Online Shoppers, North America)
(North America)
Credit Card 79%
Credit Card 47%
PayPal 43%
Debit Card 39%
PayPal 24%
Bill me later 10%
Gift Card 8%
Debit Card 17%
Mailed a Check 7%
Other 3%
Bank Transfer 3%
COD 1%
Yahoo! Wallet 1%
COD 2%
MS Passport 0%
0%
20%
40%
60%
0%
80%
Forrester: The Technographics Survey, April 2005
(Sample: 5,051, +/- 1.4% margin of error)
CONFIDENTIAL & PROPRIETARY
10%
20%
30%
40%
50%
AC Nielsen: Global Online Shopping Habits, Oct 2005
(Sample: 21,261, 38 markets, +/- 0.68% margin of error)
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