PayPal – Why Money as You Know it Will Disappear


(APPLAUSE)Thank you, Amanda.I kind of…part of me wants
to just let you keep going
and talk about what’s happeningand how the transformation’s
taking place.
But before I start, PayPal
and Telstra are great partners,
and I’d like to thank David,
and Amanda, Gerd and Monty
for having us here,
and also for partnering with PayPal.
And, as we started
preparing for this today
and thinking about the themes
and where we’re going,
it was quite exciting.And as we heard today
from Joe and from Brian,
you’re gonna hear
a lot of common themes.
That’s the interesting thing
about coming third,
or speaking third or fourth
at one of these,
is there are a lot
of trains…trends
that are overlapping
and intersecting.
But, as I drove in this morning,
I started to think back –
how long have we been talking about
e-commerce or digital commerce?
It’s been about 20 years.It’s really 20 yearssince Amazon and eBay
started pioneering marketplaces,
and I showed up
about five years later.
And just to give you a sense
of how fast things are progressing,
the very first product that I worked
on – quite innovative at the time –
it was a little piece of software
you download on your laptop,
and it allowed small sellersthat were gonna sell on the
thousands of auction marketplaces
that were developing
around the world…
And it allowed them to put
their images and their listings
and hit this innovative
auction sync technology,
this button that would upload all
of their listings and schedule them.
Because, at the time, in dial-ups,it was hard to actually
schedule your commerce transactions
and to manage your business.And to think where we’ve come today,where digital commerce
is all part of our world,
and it’s embedded in our lives –it’s on our mobile devices,
it’s across global platforms –
it’s quite incredible
to think how fast things are going,
and to think ahead another 15 or 20
years, as to where we’ll go.
And that’s really
the purpose of today,
and what I’d like
to talk to you about
is really reimagining commerce
and how things will transpire.
So I’m gonna spent 45 minutes
talking about this slide,
and talking you through
step by step.
(LAUGHTER)(CHUCKLES) Because I think that’s
what you really want to hear.
Actually, this is
a chart by Gartner.
It’s called the hype curve.And Brian did a nice job
talking about what is really real
and what is the point
at which there’s productivity,
and I think, every day, we hear new
announcements of new technologies,
from beacons to Apple Pay,
and some of these things will stick.
But what I think
we all have to discern
is what is a real trend versus
what is something that’s hype,
and not to overinvest in that,and to pick the right time
so that we’re not disappointed.
And I think that’s a little bit what
I’m going to try to share today,
is where does PayPal think,what are the real trends that are
sustainable and that we can bank on?
From where we sit at our office,we get to look out straight at these
toll booths on the Harbour Bridge,
and it’s a nice example
about how commerce is evolving
and how commerce
is changing over time.
And as we all know,there was a time when we’d hand
somebody a bill or a couple of coins
as we crossed the bridge,and then the big innovationwas that you could just throw
your 20 cents into a little can
and then keep going.And now, as we know, back
since 2008, we have an e-tag.
And what this says is that
what we consider to be convenient,
it is continually
changing and evolving
as technology is shaping our lives.And we like this as an analogy,and we think, where is it
going to go in the future,
as your cars become smarter,as there’s beacons
and censors everywhere?
I mean, is there a worldwhere you need this big
infrastructure on the bridge,
or can we actually –
and will governments actually –
charge us depending on the time
of day, the amount of traffic,
when things are surging
and not surging,
because things are smarter
and more intelligent?
How does that change our lives?And how does it make things easier?And so you heard a lot of this todayfrom Joe and from Brian
and from David,
that technology needs
to not just solve a problem,
it needs to provide utility.But it also…the opportunity thereis how does it provide
more value to our lives?
How does it enrich us?How does it make us feel better
or make things simpler and easier?
And the companies
that are winning today
are able to do both of these things,but they’re able to do it
with speed and scale.
And I’ll give you a few examples,and I kind of go back to 20…
I guess it would have been 2006,
uh, when just a few cubes
away from me
these guys are mucking around
with this concept
of embedding video sharing
within a browser,
and it was a pretty novel concept.And that later became YouTube.And what was interesting at the timeis they were not the only ones
that were playing around in video.
There was a lot
of different start-ups,
a lot of money going to this space,it was a pretty known thing
that video sharing would happen.
But the founders of YouTubedid things
that were easier, more innovative,
and they were able
to scale at a rate
that most of their competitors
couldn’t.
And I think the same thing is true
in commerce.
And you’ll see today that
we’re working on a global stage,
there’s multiple platforms
that you have to plug into.
And what we considered
kind of basics
of having a nice commerce websiteor having an omnichannel of
a website in your physical store
is not enough today.And so, if we continue to thinkabout this concept
of utility and value –
you heard the example earlier
of Google Express or Amazon Prime –
the concept of on-demand,where goods come to you
when you want it, from any store,
we think that’s very powerful.And I challenge all of you to
go through the exercise of saying,
“What commerce experiences are in my
life, and how can they be enhanced?
“What value can they add?”And I did this over the weekend,
when as I was looking at my kids…
We were doing
our weekly Skype video chat
with our family around the world.And we also had to go to the doctors
just a little bit later,
which is, if you have young kids,
you know is a regular occurrence,
it’s a part of our month.Skype’s part of our week.
The doctor’s part of a month.
And you just merge
these things together.
And you might think, “Hey,
this is reimagining health care,”
but it’s also reimagining commerce.Because what I really want is,
anytime that I want, day or night,
to be able to connect
to a doctor on video
and understand, do I need
to go visit somebody in person,
or can I resolve this issue
right then and there?
And why that’s not just
a health care experience
is because
it’s taking your identity,
it’s taking the metadata about you,
it’s sharing your historical records
and its connecting things
through payment.
And this is a world
that we’re going to.
I, after that, kind of brainstormed,
I did a search,
and sure enough,from the largest companies in
the world down to the smallest,
there’s a lot of start-upsthat are trying to connect
doctors up with consumers 24/7.
So commerce
will continue to evolve in this way.
And it’s happening across
multiple different industries.
And you can look around the worldand, sadly, you can look
even at tragedies
to see how consumers are connected.This is from a year ago,
at Hurricane Haiyan
that happened in the Philippines.And what you see is 500,000 people
came together within hours…
..minutes, hours, days,and instead of finding
their local Salvation Army
or running to the bank
to make a donation,
from their smartphone,because they’re connected
to this global ecosystem,
they were able to make
these donations.
And it’s the power of having things
ready when you want it
and having the platforms
that will connect you together.
It’s very inspiring
to think about this
across industry and across vertical.I’ll pause for a second.I hope everyone has a PayPal account
and has used PayPal,
but we think it’s important
as you reimagine commerce
to understand
how things have evolved,
and I’d love to just take a minute
to talk about the PayPal story.
PayPal started off, famously,as a way to beam money
between Palm Pilots.
And, fortunately,
the founders were smart enough
to realise that wasn’t a big market.So, where it evolved, they saw
this big marketplace called eBay,
where people were sending cheques
and money orders through the mail,
and small sellers were having
to wait a week to ship out items,
and so it wasn’t
a very efficient marketplace.
So they created the PayPal wallet,
they optimised for eBay,
and then, eventually,
small merchants moved off eBay
to set up their second site
and their own channel,
and PayPal evolved there.And increasingly, over the years,we’ve gone from small merchants
to large merchants,
starting off in retail,
moving into billing.
P2P has always been at our core,and we’ve expanded that
around the world.
Today, we consider ourselves…It’s famous, or popular,
to use the term ‘digital wallet’,
but effectively, we’ve been
this cloud-based digital wallet,
and we’re adding
more and more sources of value,
where you can unlock your points,
your airline points, in the US,
and turn those into value
that you can trade.
We can give you three easy paymentsif you want to buy
that flat-screen in-store,
and give those payment terms
right to your smartphone
to help facilitate that checkout.And the value to consumersreally boils down
to some timeless concepts –
convenience, security, flexibility.That it’s wherever you want to be.In a world where there’s 2 billion
smartphones, growing to 5 billion,
and there’s, you know,
hundreds of millions of iPads,
and every device that surround us
becomes an opportunity to transact,
it’s important
to have a payment operating system
that is there and is safe
and secure and dependable.
And ultimately, our businessis about serving
two sets of consumers –
it’s about the consumers
and merchants,
and I guess you would say
developers as well,
that are creating the next
generation of applications.
And for them, what they tell us
is, “Help me connect.”
You heard it earlier today
from David.
I thought it was great
to hear him talk about advocacy
and net promoter score.How can a service
make my experience better?
How can a payment service?How can all the aspects
of that service layer up
to make things in my life better?So it’s about increasing sales,it’s about increasing
the consumers’ experience.
And, because we’ve become a networkwith 157 million consumers
around the world,
how can we bridge the gap
between those two audiences
in a way that consumers trust, that
they enjoy, that’s not invasive,
and still respects
their privacy and security?
And that’s where the next wave
of PayPal is going in the future.
So, with that background,I’ll talk briefly about what
we think are the five major trends –
again, back to the hype curve.What are the things
that will be enduring
and will really shape
the next generation of commerce?
They layer up to mobile platforms –next-generation commerce platforms –local, global,and then, underlying everythinghas to be a layer
of trust and security.
I’m at
a Telstra digital conference –
I don’t probably need to talk aboutthe mobile phone or the smartphone
as your mission control.
I think we understand
all of the different aspects
and how the value gets layered on
more and more every day.
But I do want to cut through
some of the buzzwords
that you may hear
and you might read about.
What’s fact, what’s fiction,
where are we headed?
Let’s start with NFC.On the heels of Apple Pay,there’s a lot of talk about NFC.And it’s interesting to look at itfrom a global landscape.And Apple is launching in the US,and it’s interesting therebecause only 2% of all the terminals
in the US are ready for NFC.
So there’s going to be this
massive initial wave of hype,
and then it’ll take
quite a while to build out.
You contrast that to Australia,where all of us tap our cards,
contactless cards.
7 out of 10 transactions
at Woolies or Coles
are contactless transaction.Where do we think it’s going to go?Ultimately, we do think that,
for some period of time,
NFC is relevant.But to get consumers…
even in this market,
where we’re so
tap-and-go friendly, so to speak,
to get them to switch, it takes
more than just the payment
to really transform commerce.Our research,
and talking to our consumers,
says that you need to
innovate around the payment,
both pre-transaction
and post-transaction.
You need to add value.Because pulling out your card
versus pulling out your phone –
it’s more or less the same.But we see that happening.We see the innovation
moving in that direction.
And we’re quite excited.And I think within five yearswe would all expect NFC
to be pervasive.
Tokenisation – that’s another
big buzzword that’s out there.
And I’ll take you back
to a PayPal example.
One of our core value propsis to shop without sharing
your financial information.
And so, tokenisation is just that –it’s the rest
of the payment industry
realising that today’s digital worldrequires another level of safety
and another level of convenience
that we, previously,unless you’re working in
a PayPal world, haven’t enjoyed.
And so, tokenisation is putting
security, a layer of security,
and removing the personal
account information
from being spread
across the internet.
Now, I’ll tell you, this,
in the US, is a massive topic.
When I came to Australia
three years ago
I was hard-wired,
conditioned by the US
that you would never share
your financial information,
and the first thing I did was have,
you know, 10 different people
give me their account number
and their BSB.
So things are contextual
around the world.
But I think, even in Australia,there’s a difference
between your BPAY system,
where the level of security around
that account number is known,
versus sharing your credit card
details across the world.
So this will be a critical partof the payment operating system
of the future.
We’ve talked a lot about your device
as a delivery address.
We think that Uber
is just the early days,
and the taxi use casesis just an initial platform
that you will see.
I think the concept
that they’re doing
of making payments invisible
and removing that
and adding a level
of convenience and value
around the experience of car sharing
or riding a taxi is incredible.
And I don’t need to talk to you
about being always on.
But I would say that this concept
of your smart devices
having a bunch of data around you,including your payment information,and using that as a point of access,we think is a big deal.And I’ll give you an example here.I’ll give you an example
in one slide.
So, what is happening in mobile,
is it real?
We know that it is.Just three years ago,
when I first arrived in Australia,
1% of PayPal’s transactions
happened on a mobile device.
Today, in Australia –it’s north
of 30% globally for PayPal –
it’s north of 20%,and were seeing probably $50 billionof mobile commerce happen this year.It’s an incredible explosion.But, for businesses,
what we see is –
we kind of abstract our data
and we look another level deep –
in most industries,
there is a zero growth from desktop.
100% of the growth that businesses
are seeing
in e-commerce or mobile commerce,or commerce overall
in digital commerce,
is happening on mobile devices.So think about that – if you want
to be a growing, thriving business
and you’re not optimised
for this new world,
then you’ll be left behind.And we see that –we see businesses that are great
on a mobile platform
that didn’t exist before
in a desktop world.
And so, every business,
every service,
needs to think about how they’re
evolving to work in this new world.
And there will be
segment-specific solutions.
So, one segment is this idea
of face payments, or,
“I want to share information
to improve my experience.”
And today it’s really that basic.It says, I, as a consumer,
will check into whatever merchant
and, by doing so,
I know that I’ll get
a little bit better
customer service.
But, if we think aboutwrapping a bunch of customer
relationship management tools,
even basic ones, for small
merchants or large merchants,
and the more
that they incent consumers
to share in a very social world,
the more that they get,
you think about cloud.We think this concept
of personalisation is really big
and has long legs.It’ll take a while to work –you have to connect up
a lot of systems,
and a lot of disparate systemsthat merchants are using
around the world today –
but it’s a big idea.The next one in the middle –I’ll show you a quick video
in a minute here –
but what you see there
is a Venmo social P2P feed.
And those words
are kind of new to me.
There was an article about two
weeks ago that said “the 30 line.”
And it explained
why I don’t get Venmo.
But I’ll explain it to you.And it said those people that are
under 30, they naturally get Venmo.
They grew up
in a digitally native social world
where they’re going to
share everything.
And this concept of Venmo is,“When I pay you back
for lunch last night
“or I pay you for my rent
or my portion of the utilities,
“of course I want
to make that social.”
(LAUGHTER)Of course!So that’s what you see here –
I’m paying people back,
and I want to tell my social network
about the fact that I paid you back.
And they said those of us
that are over 30
don’t get it
and probably will never get it,
but those of us
that are under 30, we do.
So here’s how it works.I want to make a payment.It’s for food and karaoke
last night.
And very quickly, my social…
my Venmo network is updated,
as well as any other social network
I want to connect to.
Simple, easy.It’s the fastest growing
payment network in the US.
It’s amazing to see how
young consumers are adopting this.
So, again,
think about different segments
as we think about this new world.It is not just retail e-commerce,
it’s not just services.
It will impact and transpire, but
there are some common elements here
around ease of use,
providing more value,
in addition to solving a need.One that I am comfortable with
is One Touch.
(HAPPY MUSIC PLAYS)And what you see here
is a website called StubHub.
And consumers
want to shop and check out,
they click the button
and authenticate per normal.
What they’re doing here isthey’re authorising something
called PayPal One Touch.
So what that means is, the next time
they come back, they click checkout,
their payment preferences
are saved…
..and they’re on their way.And this is powerful,
not just for this one experience.
You like, “OK, I’ve saved
my payment details before.”
PayPal has 12 million websites
around the world – 12 million shops.
And the concept of One Touch is thatif you authenticate
and share your information on that,
with fraud management
and risk management,
we’re able to use and digitally
fingerprint that device,
so that, every time you come backon any PayPal-enabled
website or app,
with One Touch, you can check out,and we will still protect you
as we always do.
We think this is an evolutionthat will really help continue
to spur mobile payments,
and it’s the next big wave
that were looking at.
Simple in concept,
but we think quite powerful,
and we think important for anyone
that is building a business
to think about how they remove stepsand help consumers simplify
or shorten the difference
between what they want
and what they get.
(ONE TOUCH MUSIC PLAYS)Uh! We’re not gonna watch it again.(AUDIENCE CHUCKLES)
It’s good.
So, the next big trend –and you heard about this earlierfrom Joe today, about platforms.And we call them
next-generation platforms.
And what we’ve seen emergeis a real explosion of these
incredibly large platforms
that are really not
purpose-built for commerce,
but that’s where consumers
are spending their time.
Be it on Facebook or Pinterest,
but also on mega-marketplaces,
we’ve seen an explosion of these.We’ve seen Alibaba come onto
the scene, born out of China.
We’ve seen eBay continue to expand –
Amazon has a global reach.
And then we see
vertically specific marketplaces
that are getting global scale.And we think it’s, again,
what used to be omnichannel,
what we used to consider
having a great website
and then connecting through maybe
one marketplace is not enough.
And for businesses to thrive,they need to be where consumers
are spending their time,
and they need to recognisethat when you layer on
the social data and the identity
and the payment simplicityand the context from which you’re inwhen you’re on these apps
and you’re spending your time,
that consumers will increasingly
become transactional
on places like Facebook and Twitter.And so, as a business,your strategy needs to be
about publicising your data
and sharing your content, sharing
the goods that you’re selling
across multiple platformsto participate in
this next-level economy.
Because, as devices get smaller,
there’s only so many companies –
and these platforms
are doing a brilliant job
of simplifying the experience,so that consumers,
with one click, can check out.
So I’ll give you a quick example
here – there’s a website…
And I love that example
of, a magazine is…
..um, you know, a dumb iPad.Um, and it’s the idea of House.And House is this idea that,
if I’m remodelling my house,
I want inspiration,
similar to Pinterest,
I will go start searching through.And there’s curated data,
curated information,
about lamps and designs and rugs.And increasingly,
you can go from that experience
of just searching, getting
inspiration, to buy with one click.
So, why would I go on thereand then follow myself to
a hardware store to a lamp store?
It’s too many steps away
for consumers.
They want it there,
they want it now.
And, if you abstract things
like shipping address,
you can bring it to your smartphone,you can send it to your house
with just one click.
And that’s a big evolution
and a big step forward
in how consumers
are spending their time.
We heard from Freelancer
earlier today.
There’s some
great Australian examples.
This is a marketplace for
high-skilled labour that’s remote.
And it’s getting global scale
and global reach.
So this change that’s happening
and this redefinition of commerce
and where people are finding workand where businesses
are consuming resources,
it’s changing quite dramatically.It’s these mega-marketplaces
that we have to look to.
I’d count Freelancer in that.I’d count Envato,a Melbourne start-up that
maybe you haven’t heard of.
But they’re massive in terms
of a marketplace for digital goods.
So it’s mega-marketplaces
and new platforms
in which consumers
and big businesses are interacting
that will be really important,and that are very optimised
around the customer experience.
Black Milk
is a story out of Brisbane.
I’m not sure
if you’ve heard their story.
We’ll watch it here in a second.But what they’ve done is take a big
idea from a relatively small concept
and blow it up globally,because they found a global audience
using these platforms.
So take a minute
and watch the Black Milk story.
I’ve been with Black Milk
pretty much since the beginning,
when James was in his kitchen
at home learning how to sew.
Since then, we do everythingfrom swimsuits, dresses,
catsuits, suspenders –
basically, we work with stretchwear.We make everything in Australia –
or Brisbane –
and sell it directly
around the world.
100% online. Nowhere else stocks it.If you want Black Milk clothing,
it’s through our website.
Some people look at our brand
and go, “It’s kind of like a cult.”
(LAUGHS) It is.I mean, our customers are amazing.You know, we don’t do advertising.You know, it’s about
discovering the brand
through your friends
or your social network.
Four years ago, when Black Milk
started out of a kitchen,
there was a lot of push to do
the traditional bricks and mortar
and set up a little store
in Brisbane, or stock to Brisbane.
But pretty quickly, we found
that it needs to be online.
I mean, what better wayof being open 24 hours a day,
365 days a year?
And what we needed,
we needed this payment system,
something that was universal,
trustworthy.
So, quickly, we found PayPal,
and PayPal was a great solution
that was convenient,
instantly recognisable.
So, I mean, Brisbane, Australia,
is a long, long way away
from some of these countries
that we sell to.
So PayPal was easily
the best option for us to use.
What makes Black Milk so unique
is what is behind me here.
We’re 100% Australian made.And behind me is
an amazing team of sewers.
So, all the printing presses –the sublimation printing
is all done here in Brisbane.
We’ve got a group of designers,
pattern makers,
the logistics, all the packing.So, everything that we make
here in Australia
gets sent directly to the customers.We don’t wholesale.Everything’s 100% online,
direct to the customer.
Right now, we see that about half
of our sales are from Australia.
Outside of Australia, probably
about 30%-40% is Northern America,
then Europe and then Asia.As we grow, and I guess,through more social media
and the profile of the brand,
our sales internationally have been
growing, which is really exciting.
So, I think Black Milk
is a great example,
but if you abstract back from that,there are literally millions
of businesses that are connecting
and reaching a global audience
much the same way.
And again, they’re optimising
their business for mobile,
they’re understanding
how to leverage these platforms,
and we think that’s a trend
that is quite important.
But let’s talk about local.Local is something that I think
has been long imagined,
and we’re still in the early daysof exploring how we will optimiseand how commerce
will be transformed.
Much of us, most of us today,
we still walk around the streets
and find the local cafe
or the local shops that we like.
And there hasn’t been
a real big change.
I think Groupon and the
Daily Deal sites did a fantastic job
of aggregating small business
and driving demand.
But we’re still at the early daysof sparking that impulse
in the moment
and driving and shifting
behaviour right away.
But there’s a tremendous amount
of activity going into this space
of connecting up consumers
and small business,
understanding impulse,
understanding what drives impulse…
..both for a product
and/or for a store.
Because there’s excess inventory,there’s excess time,when these shops aren’t filled,when the restaurants aren’t filled.And if we can find a way,the merchants can find a way,to optimise and smooth that out,it’s a great
business opportunity for them.
And we think that consumers do…You know, when they have an impulse,
they want it now.
The stat earlier was
67% of all shopping
happens, or starts,
on a mobile device.
And we see that stat… I agree.
We see it continue to rise.
So what are the types of impulse
that we’re talking about?
What’s going to be sparked?And so is this idea that,
as you’re walking around,
a cafe might have, you know,a time of the week or a day
of the week where they’re empty.
And so why couldn’t they
set up reminders
for that day of the week
or the day of the month
and send out to anyone
that’s nearby –
some sort of digital coupon
that can be delivered?
Well, there’s a lot of layers
that need to come together,
and we’re finally
bringing them together.
You need a payment system
that works for that,
you need a way to reach consumers,you need to know who they are,
what their identity is.
So the layers of the ecosystem
are coming together to enable that.
And there’s some great examples
that I’ll share with you,
but this is the tip of the iceberg.And I think that what we’ll see
is a explosion of concepts
and then probably
a narrowing down over time.
But here’s a couple –
they go from really small and clever
to, I think,
quite big and monumental.
So, Jimmy Brings.I hadn’t heard of Jimmy Brings
until a couple of weeks ago.
But it’s this concept
in the Northern Beaches
that, if you want alcohol
within 30 minutes,
Jimmy will bring it.(LAUGHTER)
Right?
So, you think about going from
impulse, “I need some alcohol,”
to, “I don’t want
to go get it myself.”
Jimmy solves that need.That is hyper-local
and quite custom.
AirTasker has now got a massive
audience across Australia,
and it’s this idea that,
“I need help right now.
“I want to lift that piano,“I want to lift that bookshelf,
and I need some help.”
I can find those resources
to come to my step.
I can find that university student.So there’s an impulse,
there’s a need,
and meeting that need,
matching that demand.
Yelp’s an interesting app
that, um…
Interestingly, also co-founded by
people from PayPal many years ago.
It hasn’t taken super strong
traction in Australia,
but globally it’s quite big.But historically, it’s just beenan information and kind of a social
network and recommendation system
for restaurants and cafes
and for your life.
But when we connect some of
these systems together today,
they’re becoming more transactional.This idea that
if I save my payment information
and I’m going to find a restaurant,I can make the booking, I can
have my payment information saved,
and perhaps I can get
value out of that.
There can be offers
that are delivered to me.
And so we’ll see, I think,
a big wave happen there as well,
where the platforms
are connecting together.
(COUGHS)Excuse me.Telstra Treats, I think, is great.Um, and it is this idea of, I
will share information as a consumer
if I’m going to get
something back from it.
And so I’d encourage you
to download that app.
They’ve done a great job
building a beautiful experience,
but the innovation to me is
I share and I get something back.
And Uber is well discussed.Uber, Lyft, Hailo – this idea of
bringing things to me on my impulse,
that will expand way beyond
taxis as we go forward.
And then global.I think, in Australia, we often
talk about the import economy
and this idea that
we’re bringing goods in,
we’re trying to, kind of,
close the gaps
that might exist
in supply or price or quality.
But, increasingly,
what we see around the world
is a huge cross-border economyof connected consumers
looking beyond their borders.
We commissioned this work last year
called The New Spice Routes,
and it tried to identifyhow is trade developing today
across borders in a digital world.
And it’s really fascinating
to see it explode,
and to see how it will
actually change economies.
And it’s massive.Within the next couple of years,you’ll see an entire US
e-commerce economy be created
cross borders, intra-border.And this is fuelled
by more people coming on,
but also through higher trust
and increased security
and more standards
being put in place,
and access to millions of shoppers.If you think about it,
if you’re an Australian merchant
and you’re looking to sell
within Australia,
you might have, at max, 11 million
online shoppers or mobile shoppers.
Realistically, it’s probably
6 or 7 million.
If you start accessing the worldand publicising your goods
across these platforms,
your access today goes from
100 million
to, in the future,
130 million consumers.
And we predict
it will be very material.
Just to put things into context,this year,the Australian e-commerce economywill be about $15 billion –depends if you include
travel and grocery,
but more or less $15 billion.And within three years, exporters –small businesses, large businesses
exporting goods across borders –
will have the same size
of economy to reach.
Last week at our offices,we hosted a couple
of great examples of this
from small to medium-size business.One was a woman who created
a business called WallFry.
And her idea – she was
living in Dubai at the time –
was she wanted
to decorate her nursery.
She’s an artist,and she couldn’t find the types of
art and decoration that she wanted.
So she created it herself,
she created a business,
launched it online,launched it on eBay,
created her own website,
and lo and behold, more than 90%
of her sales are cross-border,
shipping around the world.And she’s optimised, had to learn
those trades, learn those customs.
But it’s really fascinating to seehow she’s created a small
business for herself.
Another great example
was from KeepCup.
And this is
an Australian manufacturer
who looked around, said…He owned several cafes,
coffee shops, and said,
“Listen, all these disposable cups,
we need to get rid of them.
“Yet all the current reusable cups“are pretty ugly and clunky,
they’re mugs.
“How can I create something
that’s useful and beautiful?”
He created KeepCup.50% of his sales
are now cross-border.
And he was talking to us
last week about his pride
of manufacturing something in
Australia and exporting to China.
To him, that was a big deal.It’s a great example, but we thinkthat enabling small business
and large business in this way
is a big sign of where the digital
economy will go in the future,
accessing and leveraging
these platforms.
And where is the growth coming from?It might not be where you’d expect.This is with the fastest growing
markets for Australian exports,
but the total absolute size
of markets,
but you would see Thailand
and Russia, Israel
popping up to the top of the list.It will come,and you need to have a multichannel
and a multimarket strategy
to participate in the new economy.And then, finally,
really, at our core,
what we think a lot about his trust.And underlying everything is,
you need trust in the system,
you need to trust
in the protections.
And we found today that, if you’re
the largest banks in the US
or the largest retailers
around the world,
increasingly, it’s an arms race,where, oftentimes,
the hackers are winning.
And so we take this very seriously.We invest in it every day.We never take it for granted.But I think that’s going to be
an important part
of stabilising this new economy
and ensuring that it thrives,
ensuring that it reaches
its full potential,
is building in trust
and maintaining trust,
through many different mechanisms.So I hope I shared some trends
that were useful to you today.
This is how we see the world.This is how we see things evolving.We think we’re at a very early days
of this commerce revolution.
Again, it’s mobile devices
of all shapes and sizes
leveraging platforms, these
next-generation commerce platforms.
Having a single-channel strategy
doesn’t work.
It’s both a global scaleand accessing millions of shoppers
around the world
that are coming online,but also thinking about how
do you work in a hyper-local sense.
And at the end of the day, trust
is a critical part of everything.
So thank you for your time.
I appreciate it.
And it’s great to be
a part of this event.
(APPLAUSE)

One thought on “PayPal – Why Money as You Know it Will Disappear”

  1. Unfortunately the monetary-belief system will be around for a few more centuries,if not some. Sorry to be a troll here. cheers.

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