Transcript MRKT 495 presentation PayPal .pptx

PayPal Beacon
Maggie Bluhm
Carissa Walczak
Overview:
PayPal Beacon will connect consumers to enhanced
shopping experiences such as automatically ordering
your favorite dish at your usual lunch spot, or getting
personalized service at your favorite clothing store.
In addition, you can choose to accept messages from
stores that you walk into, so that you can take advantage
of special offers in the produce aisle.
http://youtu.be/g8h_i8qv1FY
https://www.youtube.com/watch?v=P0QCRRsuqAo
How it Works:
● PayPal Beacon is a Bluetooth Low Energy device to connected to a customer’s
PayPal app when they enter a store.
● With one vibration or sound on your phone--you’ll know you’re checked in.
● When you’re ready to make a purchase, all you have to do is say you’re paying
with PayPal and the transaction is automatically completed: no cash, cards, taps,
or signatures required—all hands free.
Effect On Consumers
● Sales associate informed upon arrival to assist and improve customer
experience
● Enabled access to offers, coupons, and real time inventory information
● Allows customers to pay completely hands-free
o control to check into the stores they want
● Merchant able to follow up post sale
Effect On Retailers
● Potential to eliminates “digital payment journey”
o Walmart Example:
 Annual Revenue of $380 billion
 Assume 50% pay with credit cards
 Company paying 1.5% fee for each transaction → recoup 25% of
that fee
 Save: $712 million
● Increase market share and creates customer loyalty
Strengths
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PayPal Beacon works across multiple platform
It is fast and easy for consumers to use
Uses less battery power than a GPS device
Does not require any internet connectivity
Will protect user data and security
PayPal is already available in 24 currencies worldwide and spread over
190 markets all over the world
● More than 153 million online accounts
● Consumers do not have to do anything at all when they check out as
everything is hands-free, no pulling out a wallet or opening an app
Weaknesses
● High exposure to risk and fraud
● PayPal has faced controversies regarding payment transactions
● Not too popular in emerging economies where people are conservative in
their payment options
● Must launch the technology in 2014 if PayPal wants to be the king of
mobile payments
● PayPal Beacon will only be compatible with the PayPal app, it will not
work with third-party apps
● Beacon technology cannot be guaranteed
● Has not partnered with any merchants yet
Opportunities
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Offer consumers a new experience and way of shopping
Opportunity to work with third party apps
The ability to become the leader in mobile payments
Implement the technology worldwide where PayPal is already being used
Threats
● Highly competitive market
● iBeam, being launched by Apple using iBeacon technology
● The PayPal Beacon technology was announced prematurely as the
technology is not yet available, allowing competitors access to their ideas
Citations
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http://www.forbes.com/sites/paularosenblum/2013/09/11/paypal-will-win-the-mobile-payments-race/
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https://www.paypal.com/us/webapps/mpp/beacon#stay-informed
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http://www.mbaskool.com/brandguide/banking-and-financial-services/1262-paypal.html
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http://thepu.sh/trends/paypals-beacon-may-win-mobile-payment-war/
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http://simplyq.com/2014/03/25/Home/How-PayPal-Beacon-Could-Make-Your-Shopping-ExperienceEasier-Video-_672#.U40glihz74g