Emerging Trends and Challenges
FTPartnersResearch-GlobalMoneyTransferTrends
FTPartnersResearch-GlobalMoneyTransferTrends
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PayPal Acquires Xoom for $890 mm<br />
PayPal: Core Product<br />
At a time when the<br />
payments industry<br />
was ripe for<br />
disruption, PayPal<br />
rose to prominence<br />
by digitizing cash<br />
<strong>and</strong> transforming<br />
the way consumers<br />
pay online<br />
merchants<br />
Product<br />
PayPal is currently the most widely used digital wallet in the<br />
world with over 165 million active user accounts <strong>and</strong> acceptance<br />
at 74% of the largest U.S. internet retailers<br />
• PayPal’s core product, the online account, allows users to<br />
transfer funds to individuals <strong>and</strong> facilitate transactions with<br />
online merchants<br />
• Customers’ digital wallets are linked to a bank account,<br />
enabling users to add <strong>and</strong> withdraw funds on dem<strong>and</strong><br />
PayPal is now the preferred online payment option across all age<br />
groups – used five times more than Visa Checkout (1)<br />
PayPal is now available<br />
on a variety of platforms<br />
Mass Adoption of Mobile<br />
Devices<br />
Digitization of Cash<br />
Emergence of Alternative<br />
Lending Methods<br />
Fragmentation of Payment<br />
Types, Technology & Channels<br />
Consumers have the power of a bank branch on a mobile app – PayPal processed over 1<br />
billion mobile transactions in 2014<br />
PayPal allows merchants to accept <strong>and</strong> consumers to pay in the currencies that are<br />
convenient to them<br />
In the last 18 months, PayPal has provided $500 mm in SMB loans in the U.S.<br />
The consumer payments vertical is fragmented – PayPal’s technology <strong>and</strong> services are<br />
agnostic<br />
Rise of Fraud & Cyber Security<br />
Source: PayPal products website, press releases.<br />
(1) PayPal Digital Wallet Infographic, “PayPal is the most widely used <strong>and</strong> trusted digital wallet in the world.”<br />
Customers have the ability to make payments in confidentiality in a secure manner; PayPal<br />
also established a global Security Center in 2015<br />
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