PayPal Cross-Border Consumer Research 2016

[Pages:22]PayPal Cross-Border Consumer Research 2016

Global Summary Report

?2016 PayPal Inc.

Leveraging Cross-Border Trade Insights to Increase Sales

Cross Border Insights Research 2016

Advancement of technology is helping to open up commerce opportunities for everyone -

across borders, anywhere, anytime and via any device

?2016 PayPal Inc. Confidential and proprietary.

Understanding that we are going through a commerce revolution, PayPal in partnership with Ipsos,

conducted a global 32 market survey with approximately

28,000 consumers to examine how people shop online and

across borders.

This survey is designed to gain

insight into 3 main areas:

? How online commerce, and specifically cross-border commerce is evolving

? How and why consumers shop online domestically & across borders

? How consumers pay for domestic and cross-border transactions

2

Research Methodology

This study was conducted across 32 markets and approx. 28,000 consumers globally.

Fieldwork

Global Fieldwork: Aug-Oct 2016

Online survey

20 minute questionnaire

This research was carried out to the international quality standard for market research, ISO 20252:2012

Sample, per market

32 markets Sample of c.2000 in Russia and Poland, c.800 in other markets Nationally representative of online population Aged 18+2

Respondents recruited from online panels

Use an Internetenabled device1

Data weighted to adjust for panel bias based on external trend data

Questionnaire Screening

Transaction & Spend: Past 12 Months & Next 12 Months

Cross-Border transactions & spend

Drivers, barriers and attitudes to crossborder shopping

Cross-Border Payment

?2016 PayPal Inc. Confidential and proprietary.

1.Desktop computer/Laptop/ notebook computer/Tablet /Smartphone/Some other type of mobile phone/Electronic organizer

/ PDA with wireless voice and data features/Games console with Internet connectivity (e.g. Wii) /Smart TV

2. In Egypt, Nigeria & UAE no quotas were set, sample achieved throughmail-out to sample nationally representative of

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general population, screened for internet use. In European countries sample representative of online population aged 18-74.

The Cross-Border Opportunity

? 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

Online and cross-border commerce size and growth estimates

US and China are biggest markets in terms of online spend, but India is growing fast

US$BN

Total x-border online spend 2016($US bn) Total domestic spend 2016 ($US bn)

Compound annual growth rate: total e-commerce (CAGR) Compound annual growth rate: mobile commerce (CAGR)

CAGR (%)

600

100

550

90

500

80

450

400

70

350

60

300

50

250

40

200

30

150

20 100

50

10

0

0

US CA UK IRE DE FR IT ES NL SE BE PT PL RU HU CZ GR IL AE BR MX AR PE CL NI SA EY IN CN JP TH SN

North America

Western Europe

Eastern Europe Middle East

Latin America

Africa

Asia Pacific

For details on forecasting please see appendix

NB: Due to low incidences, no cross-border estimate has been made for Japan

Source: Ipsos PayPal Insights 2016 xxxx.

Portugal, Peru and Ireland are the countries where cross-border online shopping is most prevalent

Japan and Poland have the lowest incidence of cross-border online shoppers

Self-stated domestic and cross border purchasing in past 12 months

% Shop domestically only

% Shop domestic and x-border % Shop x-border only

4

5

4 14

2

5

11

7

5

7

12

4

15 10

5

10 15 16

8

14 14

17

6

3

8

3

2

4

3

12

25

22 18

22

22 23

22

28

29

29

32

40

59

37 41

37

44 43

37 37

26

42

40 56

39

52

47

50

55

51

67 64

55 95

69

67

73 66

63

51 52

56

78 47 51

54 55

59

44

75 74 57

52

37

37

38

35

29

38 33

19

23

13

75 49

US CA UK IRE DE FR IT ES NL SE BE PT PL RU HU CZ GR IL AE BR MX AR PE CL NI SA EY IN CN JP TH SIN

North America

Western Europe

Eastern Europe Middle East Latin America

Africa

Asia Pacific

?2016 PayPal Inc. Q27. Thinking about shopping online, from which of the following country or geographies' websites have you purchased in the past 12 months? Please include your home country if applicable.Base: Online shoppers (base size in appendix)

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Source: Ipsos PayPal Insights 2016

Latin America and the Middle East have the highest incidence of crossborder online shoppers

Cross-border shopping is least common in Asia

Self-stated domestic and cross border purchasing in past 12 months

% Shop domestically only

% Shop domestic and x-border % Shop x-border only

4

9

10

13

15

6

4

22

42

41

40

45

46

42

74

*Results are among all

consumers surveyed in each region, not weighted for population size. Russia and

Poland down-weighted to equivalent sample size

54

North America

50

Western Europe

50

Eastern Europe

41

43

Middle East

Latin America

49

Africa

Asia Pacific

?2016 PayPal Inc. Q27. Thinking about shopping online, from which of the following country or geographies' websites have you purchased in the past 12 months? Please include your home country if applicable.Base: Online shoppers (base size in appendix)

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Source: Ipsos PayPal Insights 2016

The majority of cross-border purchases are still made on a computer

However in some markets, such as China, UAE and Thailand nearly half of purchases are made on an alternate device, the majority of which are on a smartphone

Average proportion of x-border purchases in past 12 month made on each device

Desktop/laptop/notebook

Smartphone

Tablet

Other device (e.g. Smart TV, games console, feature phone)

6%

1% 1% 1% 2% 7% 13% 7% 10%

12% 11%

6%

10% 11%

6% 4%

1% 1%

1%

10% 7% 8% 7%

11% 10% 12% 16%

1% 8%

3% 6%

2% 5%

1% 7%

31%%

6% 11% 13% 16% 14%

1% 4% 7%

1% 7%

6%

1% 5%

5%

9%

20%

5%

5%

2% 4%

7% 7%

14%

18% 19%

6%

4%

3%

2% 5%

3%

5%

5%

31%%

3%

1% 7%

9% 7% 11% 13% 10% 10% 12% 23% 13%

19%

21%

18%

22%

22%

27%

31%

29%

35%

33%

64% 81% 81% 82% 78% 90% 73% 81% 82% 80% 86% 80% 80% 76% 82% 88% 86% 74% 55% 71% 69% 80% 63% 70% 64% 80% 60% 56% 48% 73% 51% 70%

US CA UK IRE DE FR IT ES NL SE BE PT PL RU HU CZ GR IL AE BR MX AR PE CL NI SA EY IN CN JP TH SN

North America

Western Europe

Eastern Europe Middle East Latin America

Africa

Asia Pacific

?2016 PayPal Inc.

Q33. Thinking only about the purchases you make on websites in other countries, what proportion of your purchases in the last 12 months do you think were made using each device? Base = Cross border shoppers (size shown in appendix)

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Source: Ipsos PayPal Insights 2016

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