2. TODAY’S AGENDA
Cross boarder trade opportunities
PayPal powering global e-commerce
What we will talk aboutPolish market
Some examples from the
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3. They don't call it the World Wide Web for nothing
Only 20 years later…
1989,Tim Berners-Lee
invents World Wide Web
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4. Every 3rd online users comes either from China,
India or Brazil.
% of global online population
20,3
C hina 13,6
tates
Un it ed S an 5,6
Jap 4,9
Ind ia 4,0
l
Brazi 3,3
any
Germ 2,9
g dom
d Kin ce 2,5
Unit e Fran
ia 2,3
Russ 2,2
Sou th
K o rea 1,7
Italy
1,7
Spain 1,6
co
M e xi 1,6
y
Turke 1,5
esia
Ind on a 1,4
d
Cana 1,4
Iran
1,3
am
Vietn 1,2
d
Po lan 1,2
ntina
Arge
0 5 10 15 20 25
Source: www.internetworldstats.com, 2009 est.
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5. Your best potential customers probably don’t live in
your country.
GDP (PPP) per capita
But the easier first step would be to focus on mature and lucrative e-
commerce markets with high population like US, DE, FR or UK. Source: IMF, 2008
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6. With 800M population and 170 B EUR e-commerce
the EU represents a huge opportunity.
E-Commerce turnover in 2007 in Euros
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
Source: First Annapolis, 2009 eCommerce payments acceptance update, August 09
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7. And cross-border online trade already takes place.
PayPal presence • 7% of EU consumers shop online abroad
• 21% of online retailers sell cross-border
• Obstacles / bariers:
• Language
• Regulatory
• Delivery
• Payment
One out of three European consumers
would consider buying a product or a
service online from another EU country
Fully localized site 20/80 light localization if it were cheaper or better.
Send/receive/withdraw enabled
Sourc: A report on e-commerce published by the Commission in March 2009 (see IP/09/354)
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8. Used in190 countries and 19 currencies.
PayPal is a global online trade enabler.
X-border sent TPV as a percentage of total TPV
12% sent 37% sent 58% sent
Cross-border TPV represents 22% of total PayPal TPV
9. Key barriers in starting a cross-boarder online
business should be simple to overcome.
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10. How am I going to get paid?
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12. How will I communicate with my new customers?
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13. How will the goods be delivered? And what with the
customs?
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14. What if the foreign customer has questions or
complains?
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15. EU laws provide the legal framework for online
trade
Distance Selling Directive 1997/7/EC, E-Commerce Directive 2000/31/EC, Unfair
Commercial Practices Directive (UCP) 2005/29/EC.
• Information which online traders must provide
– Identity, contact details of the trader
– Main characteristics of products: full price (including taxes), delivery costs
– Payment and delivery arrangements
– Address for complaints
– Information on consumer rights such as the right to withdraw
• Under the Directive, the trader is obliged to deliver the goods within 30 days
after the order is placed.
• The consumer has the right to cancel the contract (and send the product back)
within a minimum of 7 working days without giving any reason and without
penalty, except the cost of returning the goods.
• To confirm the receipt of the order promptly and by electronic means
accessible to the consumer.
• Black List of techniques that are illegal (such as fake "limited" or "free"
offers, or bait advertising).
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17. TODAY’S AGENDA
Cross boarder trade opportunities
PayPal powering global e-commerce
What we will talk aboutPolish market
Some examples from the
Confidential and Proprietary
18. PayPal: Facts and Figures
• Headquarters: San Jose, California
• European Bank HQ: Luxembourg
• Founded: 1998, acquired by eBay in 2002
• CEO: Scott Thompson
• More than 193 million accounts –
190 markets and 19 currencies
• 9% of global e-commerce
• 66% of internet users in EU know PayPal
• 36% have already pay with PayPal*
•In the last 3 months.
•Source: Forrester Research
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19. Our wallet connects buyers and sellers
Credit Card
Direct Debit
Bank transfer
Bank Transfer
PayPal Balance
giropay 2
€ € Withdrawing methods
PayPal Balance Buyer account Seller account
Funding method "I like the security that
"I like the security that
1 PayPal offers. I Idon’t
PayPal offers. don’t
like giving my card
like giving my card
details out directly to
details out directly to
any company."
any company."
1 Buyer pays with PayPal – "I wouldn’t have bought
"I wouldn’t have bought
3
as easy as sending an eMail at these merchants ififI I
at these merchants
hadn’t seen that
hadn’t seen that
2 PayPal credits the amount PayPal was offered."
PayPal was offered."
3 Seller sends the shipment
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20. How does it work for the buyer in the merchant website
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21. We integrate local funding sources
CANADA
UK
Connection to 27 financial networks
and &15,000 local banks.
GERMANY
FRANCE
US
CHINA
SPAIN
ITALY
SWITZERLAND
AUSTRALIA
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22. PayPal represents 9% of worldwide e-commerce
193 millions accounts worldwide
95 50 millions in Europe
22
1
9
Key figures
8
$16.7 billion Total Payment 3
Volumes (2008)
2
15% of US E-commerce
9% of worldwide E-commerce
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23. PayPal is increasing Consumer Usage
‘Which of the following online payment methods
have you used in the past three months?’ - PayPal
47% 46%
41%
36% 37%
26% 25% '07
20% '09
EU UK FR DE
Source: Forrester, European Technographics Media, Marketing and Retail Online Survey, Q3 2007 and Q3 09
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24. Payments that are not so much alternative anymore
Payments acceptance among US Top 500 Internet Retailers
41%
34%
27%
22% 23%
'08
20%
18% '09
17%
4% 3%
PayPal Co-brand BML Google eBillME Amazon
PLCC
Source: First Annapolis, 2009 eCommerce payments acceptance update, August 09
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25. How do we keep up with innovation?
We enter agressively in the Mobile space
RIM Appstore Mobile P2P Yahoo! Mail Send Money Twitpay
And we go where the users are
But the most exciting things are about to happen very soon …
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27. TODAY’S AGENDA
Cross boarder trade opportunities
PayPal powering global e-commerce
What we will talk aboutPolish market
Some examples from the
Confidential and Proprietary
28. International online shop that happen to be based in Poland
JeansShop.com
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29. Based in Łódź, central Poland, selling photo
equipment worldwide on eBay
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30. Very succesull domestic business but friendly & open for
intl. customers
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31. Think globally, and follow a few simple
rules, your business can be as world-
wide as the Web itself.
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32. Thank you!
What we will talk about
ppluta@paypal.com
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33. Building blocks for PayPal in Poland
1 000 000 by EOY 2009
65% Penetration
2/4 PSP, 9/10 Carts
4 / top 10, 14 / 100
# SPs at 100%+ YoY
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