1. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. PayPal - Enabling People Through Innovative and Secure Payments The Future of EU Payments - what's next? Brussels, Belgium February 4, 2014 Luke Olbrich Head of Core Payments EMEA, PayPal (Europe) S.a.r.L. & Cie S.C.A

2. Challenges facing the European Payments Business in 2015 1.Regulatory shake up of the payments market underway 2.Rapidly changing end user needs for payment services 3.Deflationary Macro-Economic environment in Eurozone 4.Recent payment security and access technology breakthroughs

3. 1. Regulatory Shake up of the Payments Market Underway HOW WE CAN TURN A SET OF REGULATIONS INTO NEW CONSUMER AND RETAILER CHOICES

4. 4 4 2. Rapidly Changing End User Needs for Payment Services The Millennial Disruption Index* * The Millennial Index – 2014, Scratch, Viacom Media Networks

5. 2. Rapidly Changing Merchant Needs Low cost and secure payments and Business Growth Transaction fee Fraud management Trusted Brand Time until payout International payment capabilities Payment methods Integration in webshop (customization) Importance of value driver by European e-com retailer Segment* * PayPal Retailer Study, France, UK, Germany 2014 ** ECB 2013 **

6. 6 6 Evolving to meet European Buyers and Sellers Needs Combining Innovation and Security Pay Upon Invoice Pay After DeliveryPayPal Here PayPal Pro

7. 3. Deflationary Macro-Economic environment in eurozone Bringing together our unique buyer/seller connection to deliver growth in Europe Revolutionizing secure consumer and SME credit business

8. 4. Technology Breakthroughs Enabling New Entrants Leveraging Existing Rails – HCE/Tokenization Providing Security, Innovation and Opening the Market to New Entrants OS & Hardware Agnostic Platforms? With In Cloud Security & Existing Rails? Accessing Multiple Payment Options?

9. 9 9 Our Vision – From Payments Provider to Business Driver

10. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. Thank You