Conversion Optimizations Before the Holidays Converting more mobile and web visitors with PayPal’s latest data and best practices

Agenda News to Use: Latest Data from PayPal Close the Gap: Optimize Checkout More Wallet: New Payment Options Solutions team ready to help ©2017 PayPal Inc. Confidential and proprietary.

56 currencies to withdraw funds into PayPal by the numbers PayPal is a global, open, digital payments platform that businesses use to securely transact with their customers online, in stores and increasingly on mobile devices. 203M 200+ $354 B 56 currencies to withdraw funds into active accounts globally 2016 total global payment volume processed markets $102 B from mobile payment volume in 2016 16M 6.1 B Transactions in 2016 53M Notes: 6 Billion transactions - Scale y’all 354B payments 102B from mobile 30% and growing We’ll talk about this in a bit active merchants globally One Touch consumer accounts Source: Source: PayPal Q1 2017 Financial Results, released on 26 April 2017

PayPal Working Capital today Increasing engagement with consumers Growing share with core products PayPal Working Capital In new and different channels BILL PAY Expanding financial services offering Expanding to capture 100% share of checkout for merchants ©2017 PayPal Inc. Confidential and proprietary.

close the mobile conversion gap If you do one thing while replatforming, we think Mobile is it – across the globe – in fact, the team is UK this week with this same message. Close the Mobile Gap. ©2017 PayPal Inc. Confidential and proprietary.

Mobile is HOT but Conversion is NOT 66% Conversion drop-off on mobile when compared to desktop Example: $1m in sales (assume 25% mobile) $750k from normal browser $250k from mobile browser Opportunity: $500k potential added revenue with improved mobile conversion *November 2016 by SmartInsights – 3.55% for traditional browsers; 1.15% for smartphone (US)

Improving Mobile Conversion Behavioral Change Mobile shopping is a Get In, Get Out experience. Across the landscape, we see that buyers primarily have 1 item in their cart at mobile checkout Desktop: Many items Mobile: 1 item (frequent) Mobile users are buyers not shoppers

Default Guest Mobile Checkout Why billing address first? … Friction …

Summary: Reduce Friction Collecting Addresses Use Postal Code to pre-fill City/State/Country Start with Shipping Address Only collect postal code for Billing Address Credit Card Entry Remove card type (Visa/Mastercard/etc) Match MM/YY for expiration Behavioral: Buyers not Shoppers Minimize clicks from product page to purchase Buy/checkout directly from product page Test removing cross/up sell

PayPal Checkout - Frictionless Click 1 Click 2 Click 3

PayPal One Touch - Frictionless

Optimize your payments options There’s a massive amount of marketing dollars and PR in the payments space. We’re not immune to it here are the PYPL… ©2017 PayPal Inc. Confidential and proprietary.

Payments Options Credit Card Must Have: Consider: Test: Special Cases:

Credit for the Holidays ©2016 PayPal Inc. Confidential and proprietary.

Source: comScore customer survey completed in January 2016, among 3,010 consumers who have used PayPal Credit. 2 Source: Nielsen study commissioned by PayPal of actual transactions from 27 small and medium-sized merchants between October 2015 and March 2016. ©2017 PayPal Inc. Confidential and proprietary.

Using PayPal Credit is easy & seamless. New Customers Top of mind information like birthdate & SSN are used to apply. Takes seconds to complete. Response is immediate Existing Customers No need to reapply Simply pay with PayPal Credit at checkout Revolving credit and financing programs already available ©2017 PayPal Inc. Confidential and proprietary.

Login to your Zoey Control Panel Choose Setup > Payment Choose PayPal Express Checkout Choose More Options Under “PayPal Credit” Options, Toggle On All Set! ©2017 PayPal Inc. Confidential and proprietary.

©2016 PayPal Inc. Confidential and proprietary. Alternative Payments ©2016 PayPal Inc. Confidential and proprietary.

Payments Options Credit Card Must Have: Consider: Test: Special Cases:

PayPal & Braintree comparison High level differences PayPal PayPal branded: customers use their PayPal wallet in order to expedite the checkout journey. Both merchants and buyers have a PayPal account. Money is moved instantly to seller when transaction completes. PayPal can be integrated via Braintree or other APIs. Braintree Merchants can process just cards, or card payments plus other alternatives. Card payments are unbranded to customers. For card payments, Braintree typically act as both the payment gateway and acquirer. PayPal Allow customers to checkout using their PayPal wallet Braintree Accept “full stack” payments via Braintree integration.

Providing Distinct Benefits for Retailers Braintree’s credit card processing solution offers several key advantages. Outstanding Integration & Support Fast and easy integration Dedicated customer support Advanced Security and Fraud Protection Protection for your customers and your business Vaulting to securely store sensitive data Reduced PCI compliance Competitive & Transparent Pricing Full Feature Set Recurring Billing Account Updater Dispute Manager Global & Mobile Mobile Focus Scalability & International Growth

©2016 PayPal Inc. Confidential and proprietary. Holiday Checklist ©2016 PayPal Inc. Confidential and proprietary.

Checklist: Reduce Friction & Optimize Payments Collecting Addresses Use Postal Code to pre-fill City/State/Country Start with Shipping Address Only collect postal code for Billing Address Credit Card Entry Remove card type (Visa/Mastercard/etc) Match MM/YY for expiration Behavioral: Buyers not Shoppers Minimize clicks from product page to purchase Buy/checkout directly from product page Test removing cross/up sell Easy Optimizations in Zoey: Begin Testing for Your Store: