1. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. Case Study: Driving Commerce with Custom Data Targeting & Offers

2. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 2 PayPal omnichannel advertising solutions Lead customers to retail and measure foot traffic with our Location Based Mobile Network. Engage customers in-aisle with RedLaser. Deliver PayPal Offers directly into PayPal digital wallets. Drive e-commerce or offline sales while using PayPal data to engage highly refined audiences on PayPal’s Online Shopper Network.

3. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. Closed Loop Offer flow 3 Save $15 Offer received Visible in user’s PayPal wallet; ready for use Offer automatically applied

4. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 4 Case study: Closed Loop Offers 4.4:1 ROI 4.5:1 ROI 4.3:1 ROI 2.4:1 ROI ACQUISITION: GIFT GIVERS REACTIVATION: DORMANT CUSTOMERS INCREASE BASKET: EXISTING CUSTOMERS ACQUISITION: LOOKALIKES Objectives: Acquire new customers Re-engage inactive customers Increase basket size among existing customers Solution: Target custom audience segments within PayPal’s shopper base with user-specific offers Results: