THE EMERGING MOBILE COMMERCE

Edwin Lai, Head of Large Merchant Services

PayPal Hong Kong

PayPal is the world’s first Digital Wallet.

PAYPAL 193 MARKETS/ 25 CURRENCIES

PAYMENTS PROCESSED BY PAYPAL EACH MINUTE

$ 300,000

Active users trust PayPal

123,000,000

Mobile vs.

Digital Wallets

Mobile Wallet is just a wallet. No intrinsic advantage over using a credit card or cash.

= =

Our digital wallet has always lived in the cloud.

PayPal Total Payment Volume from Remote Mobile Transactions Mobile is now 10% of TPV.

2009 2010 2011 2012 2013 Est.

$4B

$141M $750M

0.2% TPV

0.8% TPV

3.4% TPV

$14B 9.7% TPV

$20 B

HONG KONG M-COMMERCE

• 52% Smartphone shoppers are frequent buyers,

making mobile purchases at least once a month.

**Sources could be provided upon requests.

• 81% of users prefer mobile sites or apps for researching prices.

• 74% make a purchases as a result of browsing on a Smartphone.

• Hong Kong Ranks #4 by Smartphone Penetration in the world.

• **Rank #1 by Tablet devices.

• Android & iPhone handheld covered over 80% of the smartphone

markets

mCommerce not only increase sales, but also bring

in new customers.

Source: PayPal Consumer Online & Mobile Shopping Insights & PayPal analysis

HONG KONG MOBILE COMMERCE

MARKET

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THREE KEY TAKEAWAYS…

• We’re seeing huge consumer demand for mobile commerce in Hong

Kong, growing to reach HKD 6.4 billion in 2012.

• The traditional shopping experience is being redefined by mobile

devices, blurring the lines between online and

offline purchases.

• Call to action: Local retailers and merchants of all sizes must adapt

to this changing consumer behavior now or miss out on this high-

growth business opportunity.

Mobile is leading and transforming the Hong Kong commerce market!

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444%

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WHAT IS CONVERSION RATIO?

100 people

wants to buy

(leads)

CONVERSION RATIO: 20%

20 people

complete transaction

(sales)

80 people leave for

some reasons

CHECKOUT

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WHY A MOBILE SITE IS NEED ?!

A mobile site will

• Increase mobile sales

volume by 3 times

• Reduce drop off rates from

70% to 30%

• 10% overall sales uplift

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DIFF. MOBILE PAYMENT CHECKOUT

No PayPal

No Mobilization

No PayPal

But Mobilized 6X increase in

mobile conversion

Increased pages per

visit

from 2.85 to 6.19

Reduced drop-off

rate tremendously

from 63% to 9%

Increased time on

site 3:05 mins to

5:48 mins

PayPal

Mobilization

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PAYPAL MOBILE OPTIMIZED PAYMENT

Checkout Order

Confirmation Login Confirm

Payment

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OCEAN PARK

Ocean Park launched a pilot

campaign in selling annual pass

with 20% off offer on their

Facebook fan pages, it is first

theme park in Hong Kong to

leverage PayPal mobile

payment platform to drive traffic

and business. Shoppers and

tourists can enjoy the offers via

Ocean Park fan pages.

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SHKP TSUEN WAN PLAZA

SCAN2BUY PROJECT

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Super Star Seafood Restaurant(香港鴻星海鮮酒家) 嘟購站 – ON BUS SEAT BACK

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CAFE HABITU

Start “order” your

coffee by click

“make a purchase”

Choose your pick-up

location

Choose your coffee Pay with your balance

or top up via PayPal

Select how much you

want and pay via

PayPal

It Brings to our mobile

EC checkout page

Pay with Paypal Top up successful Bring along redeem

coupon to shop to

redeem your drink

The barista will scan

the QR and serve you

QR status will change

after goods redeemed

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