Slide 1

Pay Pal - PayPal and Mobile, Evolution or Revolution? Federal Reserve Board
Mobile Forum
February 23, 2010

Slide 2: PayPal Successfully Bridges Two Worlds

Making the world’s payment systems work seamlessly together.

Notes: Simply put, PayPal is just an innovative technology platform that sits on top of the existing financial infrastructure and makes it work for the Web.

We act like the “universal adaptor” for payments on the Web.

Financial networks: The internet:

So, PayPal bridges these two worlds – traditional payments and the Internet

Slide 3: How PayPal Works

Senders choose from any one of multiple funding sources:

PayPal sends the money but never shares details of the underlying financial instruments used:

Receivers Choose from any one of multiple withdrawal sources:

Notes: PayPal enables customers to pay in the way they prefer – whether that’s credit cards, bank accounts, or money stored in their PayPal accounts.

This model has made us very popular with consumers. But it also is the reason we’re able to keep processing costs down and pass on those savings to our merchants in the form of low fees.

Slide 4: Tremendous Customer Growth

81 Million Active * Worldwide
*Active accounts are those that have had activity in the past 12 months.  Return to text

Slide 5: PayPal Total Payment Volume

PayPal Total Payment Volume, in millions
Period Total Payment Volume
2003Q4 3,711
2004Q4 5,607
2005Q4 8,115
2006Q4 11,004
2007Q4 14,044
2008Q4 16,000
2009Q4 21,000*

* Total dollar volume of payments, net of payment reversals, successfully completed through the PayPal system during the quarter(excludes the payment gateway business). Return to table

Slide 6: How Mobile supports the PayPal Vision…

The world’s favorite way to pay and be paid anywhere, anytime, on any device

Slide 7: New trends are driving the mobile internet…

Richer User Experiences

Mobile data becoming mainstream

New compelling content and sticky services

Slide 8:…innovation dollars fueling experimentation

Mobile Payments

Telcos Chart

HW Players Chart

Attackers Chart

Visa&FI Chart

Slide 9: In the last year PP has made good progress in Mobile




Ecosystem and Innovation

Slide 10: How we think about the Mobile opportunity


Market opportunity

Our Goal
Gain relevance with consumers by embedding PayPal brand in a product core to consumers’ daily lives

UBIQUITY (Emerging markets) - PayPal

Market opportunity
In emerging markets with underdeveloped banking/payments systems and high mobile penetration, mobile could be leveraged to create a disruptive payment platform

Our Goal
Support PayPal market entry in select emerging markets via mobile

3RD WAVE (Proximity)

Market opportunity

In the future, mobile phones will be able to perform secure transactions with an easy and convenient tap

Our Goal

??? Still early days…

Slide 11: Where is the money?

Mobile payments addressable markets

Remote payments chart

Proximity payments chart
NA Payment '08 Volume Opportunity

Opportunity Timing