Paypal Insights 2016 Global Report Final

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Paypal Insights 2016 Global Report Final 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 Understanding that we are going This survey is designed to gain helping to open up commerce through a commerce revolution, insight into 3 main areas: opportunities for everyone - PayPal in partnership with Ipsos, across borders, anywhere, • How online commerce, and conducted a global 32 market anytime and via any device specifically cross-border survey with approximately commerce is evolving 28,000 consumers to examine • How and why consumers shop how people shop online and online domestically & across across borders. borders • How consumers pay for domestic and cross-border transactions ©2016 PayPal Inc. Confidential and proprietary. 2 Research Methodology This study was conducted across 32 markets and approx. 28,000 consumers globally. Fieldwork Sample, per market This research was 32 markets Global Fieldwork: carried out to Sample of c.2000 in Russia and Poland, Use an Internet- Aug-Oct 2016 the international 1 c.800 in other markets enabled device quality standard for market Nationally representative of online population research, ISO Data weighted to adjust Online Aged 18+2 20 minute 20252:2012 for panel bias based on survey Respondents recruited questionnaire external trend data from online panels Questionnaire Screening Transaction & Spend: Cross-Border Drivers, barriers and Cross-Border Past 12 Months & transactions & spend attitudes to cross- Payment Next 12 Months border shopping 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 ©2016 PayPal Inc. Confidential and proprietary. 2. In Egypt, Nigeria & UAE no quotas were set, sample achieved through mail-out to sample nationally representative of 3 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 Total x-border online spend 2016($US bn) Compound annual growth rate: total e-commerce (CAGR) Total domestic spend 2016 ($US bn) Compound annual growth rate: mobile commerce (CAGR) US$BN CAGR (%) 600 100 550 90 500 80 450 70 400 350 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 www.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 4 2 4 3 3 2 4 3 5 5 7 5 7 5 8 6 8 11 12 10 10 12 14 15 15 16 14 14 17 22 22 25 18 22 23 22 28 29 29 32 40 37 41 44 37 37 26 40 37 43 39 59 42 56 52 47 50 55 51 67 55 95 64 78 73 75 74 75 69 67 66 63 59 56 54 55 57 51 52 51 52 49 47 44 37 37 38 38 35 33 29 23 19 13 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 6 the past 12 months? Please include your home country if applicable.Base: Online shoppers (base size in appendix) Sou rce: I psos PayPal I n sigh ts 2016 Latin America and the Middle East have the highest incidence of cross- border 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 6 4 9 10 13 15 22 42 41 40 45 46 42 74 54 *Results are among all 50 50 49 41 43 consumers surveyed in each region, not weighted for population size. Russia and Poland down-weighted to equivalent sample size North Western Eastern Middle Latin Africa Asia America Europe Europe East America Pacific ©2016 PayPal Inc. Q27. Thinking about shopping online, from which of the following country or geographies’ websites have you purchased in 7 the past 12 months? Please include your home country if applicable.Base: Online shoppers (base size in appendix) Sou rce: I psos PayPal I n sigh ts 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 Ta b le t Other device (e.g. Smart TV, games console, feature phone) 1% 1% 1% 2% 1% 1% 1% 1% 3% 2% 1% 1% 1% 1% 1% 2% 4% 3% 2% 3% 1% 3% 1% 6% 6% 8% 3% 4% 5% 5% 5% 5% 4% 6% 5% 5% 3% 7% 10% 7% 7% 8% 6% 5% 7% 7% 5% 7% 7% 13% 10% 4% 7% 10% 7% 9% 7% 7% 11% 10% 13% 6% 14% 6% 9% 12% 12% 10% 11% 10% 12% 11% 13% 14% 13% 11% 6% 16% 20% 23% 11% 16% 21% 18% 19% 19% 22% 18% 22% 27% 31% 29% 33% 35% 90% 86% 88% 86% 81% 82% 81% 82% 82% 81% 78% 80% 80% 80% 80% 80% 73% 76% 74% 73% 71% 69% 70% 70% 64% 64% 63% 60% 55% 56% 48% 51% 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 8 last 12 months do you think were made using each device? Base = Cross border shoppers (size shown in appendix) Sou rce: I psos PayPal I n sigh ts 2016 European shoppers lag behind on adoption of mobile for cross-border purchases, with shoppers in Asia Pacific using mobile the most Average proportion of x-border purchases in past 12 month made on each device Desktop/laptop/notebook Smartphone Ta b le t Other device (e.g. Smart TV, games console, feature phone) 1% 1% 2% 2% 5% 2% 3% 6% 6% 8% 9% 9% 7% 10% 11% 10% 13% 24% 19% 20% 27% 81% 82% 76% 68% 70% 69% 60% *Results are among all consumers surveyed in each region, not weighted for population size. Russia and Poland down-weighted to equivalent sample size North Western Eastern Middle Latin Africa Asia America Europe Europe East America Pacific ©2016 PayPal Inc. Q33. Thinking only about the purchases you make on websites in other countries, what proportion of your purchases in the 9 last 12 months do you think were made using each device? Base = Cross border shoppers (size shown in appendix) Sou rce: I psos PayPal I n sigh ts 2016 China is the most popular cross-border online shopping destination for global online shoppers, followed by USA and UK Top online destinations among all online shoppers surveyed* (% of online shoppers have shopped in each country in past 12 months) UK/GB China 13% 21% USA 17% Germany 7% Japan 4% *Results are among all consumers surveyed in each region, not weighted for population size. Russia and Poland down-weighted to equivalent sample size ©2016 PayPal Inc. Q27. Thinking about shopping online, from which of the following country or geographies’ websites have you purchased 1 in the past 12 months? Please include your home country if applicable.Base: Online shoppers (base size in appendix) Sou rce: I psos PayPal I n sigh ts 2016 0 Clothing and apparel is the most popular category for cross-border purchases globally followed by consumer electronics Top cross-border categories among all online shoppers surveyed* (% of x-border shoppers shopping x-border in each category) Clothing/apparel, footwear and accessories 46 Consumer electronics, computers/tablets/mobiles & peripherals 29 Travel and transportation 25 Digital entertainment/education (e.g. e-books, digital music) 24 Toys and hobbie s 23 Entertainment/education (physical items) 20 Cosmetics/beauty products 20 *Results are among all consumers surveyed, not weighted for population size. Russia and Poland down-weighted to equivalent sample size ©2016 PayPal Inc. Q28. In the past 12 months what kinds of products have you purchased from websites in other countries? Base: Cross-Border shoppers (size shown in appendix) Sou rce: I psos PayPal I n sigh ts 201611 More open attitudes to cross-border shopping are seen in smaller Western European & Eastern European countries while major western countries and some Asian countries show more negative attitudes and prefer ‘global’ stores I would not feel comfortable making I prefer large 'global' stores (e.g.
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