Case Study PayPal Has Company

MBA Y-Ex 15/2 - Group 6 (2009)

Background

PayPal Inc. is the biggest online company in the world that providing a transfer and online payment services via email between Consumer to Consumer and Peer to Peer.

• Established since 1998

• Debut in 1999

• Subsidiary of in 2002

• Head office in San Jose, California, USA

MBA Y-Ex 15/2 - Group 6 (2009)

Ways to use PayPal

Pay Online

Shop for what you want quickly and securely

Send Money

Send money to just about anyone with an e-mail address

Get Paid

Accept online payment for items you sell

MBA Y-Ex 15/2 - Group 6 (2009)

How PayPal Works

CHOOSE WHO TO PAY

• Select PayPal when checking out at online stores worldwide.

• Or use PayPal to send money to friends across town or on another continent.

1

DECIDE HOW TO PAY

• Pay directly from your PayPal balance or linked bank account.

• Or charge it to your credit card.

2

PAYMENT SENT

• Stay safer - recipient gets the money without seeing sensitive financial details like your credit card or bank account numbers.

• Keep track of all your transactions on PayPal.

3

MBA Y-Ex 15/2 - Group 6 (2009)

PayPal Helps Bring You New Customers

5

PayPal is:

Secure

Simple

Fast

Drivers of ConsumerDemand for PayPal PayPal Growth

► Over 201M accounts

► 190 countries

► 24 currencies

► 1000s of merchants add PayPal every year

MBA Y-Ex 15/2 - Group 6 (2009)

The PayPal Value Proposition

PayPal user accounts

12M

96M

201M

2001 2005 20091999

MBA Y-Ex 15/2 - Group 6 (2009)

Leading Global Brands Accept PayPal

MBA Y-Ex 15/2 - Group 6 (2009)

PayPal Provides an All-in-One Solution for Online Merchants

8

Protecting the security of a merchant’s information is the top priority at PayPal.

Customer’s issuing bank

Merchant’s acquiring bank

CustomerMerchant

Processor

Payment Processing

Service

MBA Y-Ex 15/2 - Group 6 (2009)

Secure transactions

Pay with flexibility

Save time

International shopping

PayPal’s Benefit to Buyers

Q&A No. 1

MBA Y-Ex 15/2 - Group 6 (2009)

Sell with more savvy

Sell with ease

Sell with confidence

Accept debit and credit cards

Get fast access to your money

PayPal’s Benefit to Sellers

MBA Y-Ex 15/2 - Group 6 (2009)

Revenue

Online purchases Pay Free of charge Get paid 2.4% to 3.4% + $0.30

Personal payments Use PayPal balance Free of charge Use credit card 3.4% + $0.30

MBA Y-Ex 15/2 - Group 6 (2009)

Fraud – Risk for On-line Payment

MBA Y-Ex 15/2 - Group 6 (2009)

Fraud in Thailand

MBA Y-Ex 15/2 - Group 6 (2009)

Common Fraud-Related Risks

Accessing a payment network to complete fraud

Accessing payment networks

Chargebacks

A cardholder disputes a credit card purchase

Using a stolen credit card to purchase goods and services

Product theft

Using stolen information to open new credit cards

Identity theft

MBA Y-Ex 15/2 - Group 6 (2009)

Phishing

Mass Email Phishing Email Fraudulent Website (Spoof)

MBA Y-Ex 15/2 - Group 6 (2009)

Spoofed Website

Q&A No. 2

MBA Y-Ex 15/2 - Group 6 (2009)

Buyer & Seller Safely

Data EncryptionData Encryption

Prevention FraudPrevention Fraud

Protection for purchaseProtection for purchase

MBA Y-Ex 15/2 - Group 6 (2009)

PayPal’s Security Tool for Phishing

Iconix® Truemark Email Identification (เบต้�า) Iconix® Truemark Email Identification (เบต้�า)

MBA Y-Ex 15/2 - Group 6 (2009)

Security KeySecurity Key

PayPal’s Security Tool for Identity Theft

Price: $5

MBA Y-Ex 15/2 - Group 6 (2009)

PayPal’s Security Tool for Identity Theft

IE Color FireFox Color

Safer Web BrowsersSafer Web Browsers

MBA Y-Ex 15/2 - Group 6 (2009)

Fraud prevention

1. Guard your information, online and offline• Trash doesn't always end up in the dump• Stolen wallets can become stolen identities• Offline precautions

5 Ways to Thwart Identity Thieves

2. Don’t respond to email or phone calls asking for your account information• Phishing emails • Spoof websites • Genuine PayPal email • Phone Calls

3. Pay safely• Checks

• Online payment systems 4. Protect your computer

• Software protection • Password protection 5. Stay alert

• Act Quickly • Monitor your accounts frequently

MBA Y-Ex 15/2 - Group 6 (2009)

PayPal’s competitors

Go mobile with your money.Obopay is the first truly comprehensive mobile payment service in the United States.

Find it with Google. Buy it with Google Checkout.

MBA Y-Ex 15/2 - Group 6 (2009)

e-Money in Thailand

MBA Y-Ex 15/2 - Group 6 (2009)

e-Money in Thailand

PAYSBUY ( บริ�ษัท เพย์ สบาย์ จำ�ากัด)• Founded in 2004• Service that allows members to send/receive

money, make payments via electronics.• Received Electronic Money License and

Electronic Payment Service Provider License• Acquired by DTAC in 2007

MBA Y-Ex 15/2 - Group 6 (2009)

Mobile Phone Network

MBA Y-Ex 15/2 - Group 6 (2009)

Near Field Communication

MBA Y-Ex 15/2 - Group 6 (2009)

Mobile Informing Booking Payment

MBA Y-Ex 15/2 - Group 6 (2009)

Mobile Networks in Thailand

Q&A No. 4

MBA Y-Ex 15/2 - Group 6 (2009)

PayPal’s other products

PayPal Plus MasterCard® Credit Card• Use in stores and online• No annual fee• 30-second credit decision-shop online without waiting

for the card to arrive• Zero liability for unauthorized purchases• Reward points for purchases• Personalize it with customer’s own design

PayPal Debit MasterCard®• Get instant access to the money you receive• Use at ATMs worldwide or anywhere MasterCard

is accpeted• Earn 1% cash back whenever you sign for

a purchase (1)

• 100% protection against unauthrized charges to your card (2)

(1) Requires enrollment in the PayPal Preferred Rewards Program(2) Applies to fraud and theft when you notify us within 2 business days.

MBA Y-Ex 15/2 - Group 6 (2009)

PayPal’s other products

PayPal Money MarketGive teens experience managing money in a safer and more secure way:

• Immediate access• No minimum investment• Managed by experts• Competitive Return

PayPal Fund Total Return 2000 - 2008

(as of Dec,08) One Year 5 Years

PayPal Money Market Fund

2.61% 3.43%

U.S. Treasury Bills (3-month)

1.38% 3.01%

Average Annual Total Returns

MBA Y-Ex 15/2 - Group 6 (2009)

PayPal’s other products

PayPal Student AccountGive teens experience managing money in a safer and more secure way:

• Teen get the chance to learn by doing• Visibility and safeguards are built in• Sign up is fast, free and easy

PayPal Mobile PaymentTake PayPal with you – wherever you go

• Check your balance• Send money• View past transactions

MBA Y-Ex 15/2 - Group 6 (2009)

PayPal and the Future of Money

Q&A No. 3

Something will never change in future

Presented by

MBA Young Ex 15/2

Group 6