1 / 22

PayPal as an Additional Payment Option

PayPal as an Additional Payment Option. How Merchants Can Benefit When They Accept PayPal on Their Site. The PayPal Value Proposition. 105M PayPal accounts — 47% growth Significant online payment mark Adding 8M+ accounts per quarter $35B annualized payment volume — 41% growth

kimn
Download Presentation

PayPal as an Additional Payment Option

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PayPal as an Additional Payment Option How Merchants Can Benefit When They Accept PayPal on Their Site

  2. The PayPal Value Proposition • 105M PayPal accounts — 47% growth • Significant online payment mark • Adding 8M+ accounts per quarter • $35B annualized payment volume — 41% growth • 10% of US e-commerce • 5% of global e-commerce • Accepted in 55 countries & 6 core currencies • 14% of payment volume from International • Core currencies: $US, €, ¥, £, $CA, $AUS • Processes 1.2M+ transactions daily PayPal user accounts 47% YoY growth Millions 2001 2000 2002 2003 2005 2006 2004

  3. PayPal Can Drive Incremental Volume PayPal Transaction Platform • Satisfied Customers • New Customers • Increased Conversion • Increased Sales • Lower Costs Transaction Volume Over $32 Billion/Year* Merchant Results Buyer Interest • Customer Preference & Convenience • Safety & Security • Multiple Methods - “Wallet Effect” *Annualized volume based on Q4 2005 TPV

  4. 14% average sales lift Offering PayPal Can Drive Incremental Sales • Websites that offer PayPal as a way to pay reach a wider audience and can provide an uplift in sales on their site. • For small-to-medium sized businesses, accepting PayPal as a payment option in addition to credit cards increased sales an average of 14%* • Over 80% of the surveyed merchants reported a sales increase, and the increase typically started within two months* • The increased sales were incremental lift, and did not take away from current credit card volume* • According to an Internet Retailer study, 42.2% responded that accepting alternative payments (such as PayPal) have increased sales+ * Source -- Q1 2006 PayPal phone survey of 110 small and medium sized business doing a minimum of $120K in annual online sales +Internet Retailer, November 2005

  5. PayPal Drives New Customer Acquisition “83% of customers paying with PayPal were new customers to PETCO.com” Heather Blank Dir. of Business Development and Marketing, PETCO.com “30% of PayPal transactions generated new customers for Go Daddy” Michael Zimmerman CFO, Go Daddy “86.8% of the people who paid with PayPal were new customers to Tiger Direct…” Lonny Paul Director of eCommerce, Tiger Direct

  6. PayPal Users Shop More Frequently and Spend More than Non-Users Frequency of Purchasing Online (once per month or more) Average Monthly Spending Online Source: August ’05 IPSOS RDD (random direct dial) survey of 800 past 90-day online shoppers Knowledge Networks RDD Panel, Dec. ’04; past 90-day online shoppers

  7. Major Online Payment Option PayPal is more popular than debit cards for online payments

  8. Online shoppers are concerned about identity theft % of PayPal shoppers who worry about … Source: PayPal, Q3 2005. Survey of PayPal buyers. N = 584

  9. Leading Global Brands Accept PayPal

  10. PayPal as an Additional Payment Option now Integrated with the Payflow Gateway • Benefits of using the Payflow gateway integration: • Easier integration that leverages Payflow Pro SDK • Consolidated reporting • “Reference Transaction” functionality on credit card payments • “Recurring Billing” functionality on credit card payments • Combination of gateway’s Fraud Protection Service and PayPal’s internal fraud models • More options • SDKs for additional operating systems and programming languages • Reporting API for retrieving scheduled and ad hoc reports

  11. PayPal Express Checkout Banner in Manager -- What a Merchant Sees

  12. Adding PayPal as an Additional Payment Option • Two Integration Options • PayPal Express Checkout • PayPal Standard Checkout

  13. PayPal Express Checkout • PayPal’s Express Checkout lets your customers pay quickly and conveniently. • With PayPal Express Checkout, your customers get the fastest, most streamlined PayPal checkout experience. PayPal Express Checkout is highly recommended for merchants familiar with API programming. • Your customers select items to purchase and proceed to check out. When your customers choose to pay with PayPal, they are securely transferred to PayPal. • Your customers also have the option of using your existing checkout for credit card payments.

  14. PayPal Express Checkout • With PayPal Express Checkout, customers who choose to pay with PayPal are sent to secure PayPal-hosted pages to approve using PayPal to pay. The PayPal-hosted pages can be customized to match the look and feel of your website. • Once your customers approve the use of PayPal, they are automatically returned to your website to complete their order and pay. PayPal accepts, authorizes, and processes the payment instantaneously. • Once the payment is successfully processed, the funds are deposited directly into their PayPal account and can be withdrawn or transferred to their bank account easily.

  15. Benefits of using PayPal Express Checkout • Can be used as additional payment method with an existing merchant account, and as a stand alone solution for merchants without a merchant account • Available for domestic and international merchants (7/06) to sell in US, Canadian, Australian, Euros, Pounds, and Yen. • Economical pay as you use it model • Instant processing and there is no approval process • Integrated to the Payflow Pro gateway • Merchant owns more of the check out and confirmation pages

  16. PayPal Express Checkout Flow API API API

  17. PayPal Express Checkout – Merchant Placement Options PayPal placed before shipping and billing address. Checkout Shipping Billing Review Order Order Done CONT CHECKOUT ORDER Payment request made to PayPal. PayPal Login PayPal Review LOGIN CONTINUE PayPal placed with other payment methods. Checkout Shipping Billing Review Order Order Done CONT CONT CHECKOUT ORDER Payment request made to PayPal. PayPal Login PayPal Review LOGIN CONTINUE

  18. Example: PayPal Express Checkout • In Express Checkout, PayPal as an Additional Payment Option can be placed before the shipping and billing address information is collected. • The buyer uses the shipping address and financial info stored in PayPal and PayPal passes the shipping address to the merchant.

  19. PayPal Express Checkout Flow

  20. PayPal Standard Checkout Flow HTML HTML

  21. PayPal Standard Checkout • PayPal Standard Checkout is when PayPal is listed with other payment options. • It can be with option buttons, sectioned off, or in a drop-down list.

  22. Summary: PayPal as an Additional Payment Option -- Benefits to Your Merchants • Increase Acquisition & Drive Incremental Sales • Offer a global and trusted payment solution • Access PayPal’s growing user base worldwide • Benefit from strong brand association initiatives • Attract customers who do not have a credit card or are located internationally • Increase incremental sales by offering PayPal as a way to pay • Increase Conversion Rates • Fast and Easy Payment Flow • Address users’ security concerns • Customers shop without sharing financial information • Reduce costs of Service • Reduce charge-backs • Reduce fraud • Reduce Customer Support requirements

More Related