Aruba should qualify as a PayPal payment receiving country for three key reasons: 1) Tourism is a major part of Aruba's economy and PayPal would provide reliable payment options for tourists booking travel. 2) Aruba aims to develop as a "green gateway" for European businesses in Latin America, and PayPal would support foreign investment and growth. 3) There is untapped potential for Aruban artisans and small businesses to sell products online internationally using PayPal, growing the economy. To achieve this, the proposal calls for establishing a legal framework, assisting small businesses, and promoting awareness of online sales opportunities.

1. Key Reasons Aruba should qualify as
a PayPal Payment Receiving country
eCommerce & Edward M Erasmus, MA
internet payment Aruba, August 2012
system

2. Outline presentation
• State of e-Commerce in Aruba
• PayPal (key information)
• Key reasons to be listed as a
PayPal payment receiving country
• Team, plan and proposal
• Closing remarks

3. Since the commercialization of the Internet (1990s)
• Tremendous impact on culture and commerce.
• The rise of near instant communication by email,
instant messaging, Voice over Internet Protocol (VoIP)
"phone calls", two-way interactive video calls, and the
World Wide Web.

4. The rise of online shopping and eCommerce
• Online shopping has boomed both for major retail outlets
and small artisans and traders.
• Business-to-business and financial services on the Internet
affect supply chains across entire industries.
• $246 billion* spent annually online.
* Source: Forrester Research, PhoCusWright & Internet Retailer

6. As we speak...
• More than 2.2 billion people are using the Internet.
• The internet is revolutionizing every aspect of our daily
lives.
• Faster speed, open source technology, cloud computing,
smart phones, tablets and the growth of socially
interactive platforms (social media) enable creative and
innovative new forms of online business opportunities.

7. Disrupting markets and business models

8. We are witnessing the next level of
the digital revolution
It's now or never....

9. So how is Aruba doing?

10. State of e-Commerce in Aruba
• E-steering Committee (final report, August 2000).
• Objective: to make recommendations to the government
to promote e-commerce on Aruba.
• Recommendations: legal and fiscal issues, technical and
infrastructure issues, banking and security issues,
logistical issues, organization, training and educational
issues.
• Quick decision-making and implementation was crucial.

11. State of e-Commerce in Aruba
• Unfortunately not much has happened since the
publication of the e-Steering Committee Report.
• So much has changed globally.
• Priority: update report to help boost online commercial
opportunities for local businesses.

12. ...and meanwhile...

13. A new breed of young entrepreneurs is here
• Tech 'savvy-er' than ever before
• Developing creative ideas and business models
• Using the internet as platform to develop international
business (export of goods and services)

14. The new faces of
entrepreneurship

18. e-Opportunities
• Mobile: access from anywhere anytime.
• Social media: hyper connectivity and global
outreach.
• Open source technology: app development.
and social commerce.
• From e-Commerce to omni-Commerce.

19. The era of omni-commerce
• Commerce as a multi-channel approach to retail
that allows the consumer to buy from the channel
that suits them at the time that is convenient,
whether that be a mobile (phone or tablet), a
physical store or from the quiet of the laptop or at
your desktop location at home.

20. It's a global market space...

21. Our biggest e-Commerce challenge today...
• No commercial transactions through the Internet
without an affordable and reliable payment
system.
• Limiting overseas sales of goods and services.

23. What is PayPal?
PayPal is an online payment service that allows individuals
and businesses to transfer funds electronically. PayPal can
be used to:
• Send or receive payments for online auctions on eBay or
other websites.
• Purchase or sell goods and services.
• Make or receive cash donations.
• Exchange cash with someone.

24. Key information
• Founded: Palo Alto, California
• Owner: eBay Inc.
• Website: https://www.paypal.com
• Revenue: US$4.4 billion (2011)

25. Services
• As of 2011 PayPal operates in 190 markets and
manages more than 150 million active accounts.
• PayPal allows customers to send, receive, and hold
funds in 25 currencies worldwide.
• PayPal operates locally in 21 countries.

26. Regulatory status
• In the United States; licensed as a money transmitter on
a state-by-state basis.
• Not classified as a bank in the United States, though the
company is subject to some of the rules and regulations
governing the financial industry including Regulation E
consumer protections and the USA PATRIOT Act.
• In Europe; registered as a bank in Luxembourg under
the legal name PayPal (Europe) Sàrl et Cie SCA, a
company regulated centrally by the Luxembourg bank
authority.

27. Localized Sites

28. Send, receive and withdraw

29. Send, receive and withdraw (continued)

30. Send only

31. Fee structure of PayPal

32. Benefits of PayPal
Better for Buyers Better for Business
Gives buyers a faster way to Access 94 million active
pay. online shoppers.
Provides convenience and 17% lift in sales*.
security. A flexible payment solution for
Allows customers to utilize retailers large and small.
variety of payment types - $3 billion of stored revenue
PayPal balance, bank moving through PayPal
account, or credit card. accounts every 2 weeks.
*Based on a study by IPSOS in Q2 2010

33. PayPal research data
• Businesses get an average sales increase of 14% when
they add PayPal (2006 PayPal phone survey).
• On average, active PayPal buyers use PayPal for more
than half their online spending (Walker Information Inc.
February 2006 Customer Relationship Assessment).
• The primary reason PayPal shoppers prefer PayPal is
the security it affords (Quarterly PayPal brand tracker).

34. At a glance...

35. Aruba is located in the southern Caribbean, just off the northern
coast of South America. It is 19.6 miles long and 6 miles across,
at its widest point, with an area of approximately 74.5 square
miles (193 square km).
Aruba is a well-developed island with a high standard of living.

36. Aruba - Key facts
• Capital Oranjestad 12°31’N 70°1’W
• Size 193 square kilometers
• Climate Tropical 82°F (28°C) average
temperatures
• Population Approx. 108 thousand
• GDP Approx. US$ 2.7 billion
• Government type Parliamentary democracy

37. Aruba - Key facts
• Language Dutch (official), Papiamento (a
Spanish, Dutch, English dialect), English
(business language, widely spoken) and
Spanish
• Currency Aruban florins (AWG). The
Aruba florin is pegged to the United States
dollar (1$ = 1.79 AWG) and dollar is widely
accepted as a method of payment
• Legal system Based on Dutch civil law
system, with some English law influence.

38. Key Reasons Aruba should qualify
as a PayPal Payment Receiving
country

39. Reason 1 - Tourism
• Tourism receipts Afl 2.4 billion
• Tourism receipts in % of GDP: 50
• Stay over visitors: 871,300
• Revenue per available room Afl. 157
• Cruise visitors: 599,900
• Nearly 1/3 of spending is made in
advance

40. • Huge market opportunities for PayPal-related services.
• Reliable booking and reservation option for hotels, car
rentals, restaurants, providers of outdoor activities and
local airlines.

41. Reason 2 - Green gateway
• Utilizing Aruba's unique socio-economic
resources and geo-political position
within the Kingdom of the Netherlands to
develop new economic opportunities.
• Positioning Aruba as a strategic hub for
European businesses doing business in
Latin America.
• Moving towards a knowledge-driven
economy.
• Attracting foreign investment with focus
on innovation and sustainability.

42. Reason 2 - Green gateway
• Regional headquarters, medical tourism,
product showcasing, renewable energy,
commercial aquaculture, etc.
• Synergy free zone, airport and harbor.
• Opportunities for investment, growth and
expansion.

43. • Huge market opportunities for PayPal.
• Reliable payment system for globally oriented
companies.

44. Reason 3 - Untapped market potential
• Huge potential online sales of 'Made in
Aruba' products and services to
overseas markets.
• 'home-grown' products: crafts, art,
photography, jewelry, pottery, cigars,
wine, rum, beverages, honey, spices
and ingredients (hot sauce).
• Cultural experience (music, movies,
language, etc).
• Markets: USA, Latin America,
Netherlands, Caribbean

48. • 'Made in Aruba' online market place powered by
PayPal.
• Small and medium enterprises going global.

49. Reason 4 - Financial system
• Well-regulated monetary system
• Prudential supervision of banking, insurance
sector pension funds and money transfer
companies
• High solvency ratio financial institutions
• Strengthened regulations and systems
AML/CFT
• US$ is widely accepted

50. • Financial integrity of banking activities.
• Safe and secure business environment for PayPal.

51. So where do we go from here?

52. We need a team

53. Key actors
• Prime Minister • Dept. of Economic Affairs/ IDEA
• Minister of Economic Affairs • Free Zone Aruba NV
• Minister of Finance • ATA
• Parliament: Fixed • AHATA
commission Financial and
Economic Issues • ATIA
• Central Bank of Aruba • Aruba Chamber of Commerce
• ARINA

54. We need a plan

55. Plan
• Explore PayPal's needs and how to match them.
• Explore Aruba's capabilities, economic impact, market
and revenue potential (e-Commerce report).
• e-Commerce legislation and Intellectual property laws.
• Case studies (success of small islands in the region).

56. We need a proposal

57. Proposal
• Win-Win approach.
• Swift and not cumbersome.
• Establish legal and technical framework.
• Proactivity, creativity and flexibility is the key…

58. And don't forget....

59. Implementation plan
• Awareness campaign
• Assistance and guidance to
small and medium enterprises
• 'Made in Aruba' online platform
• Integration with current Aruba
apps
• Online marketers and web
developers

60. This is a unique and awesome opportunity we can't
afford to miss.
The timing is right, we need to seize the moment.
eBusiness combined with a reliable payment system
will forever change Aruba's business landscape.

61. • 'Nothing in this world can take the place of
persistence. Talent will not; nothing is more common
than unsuccessful people with talent. Genius will not;
unrewarded genius is almost a proverb. Education
will not; the world is full of educated failures.
Persistence and determination alone are omnipotent.'
• - Calvin Coolidge

63. • Edward M. Erasmus, MA
• e.erasmus@fzanv.com
• erasmus.bpas@gmail.com
• Facebook: http://www.facebook.com/edwardmerasmus
• Twitter: http://www.twitter.com/em_erasmus
• LinkedIn: http://www.linkedin.com/in/edwardmerasmus
• Blog: http://edwardmerasmus.wordpress.com

64. Image credits
• Andrea Dian / seisreyes.com
• aruba.com
• bob-photos.com
• checkingincheckingout.com
• Google images
• Kenny Theysen / visitaruba.com
• Luis Mejia / Luis Mejia Photography