Could you explain how the PayPal wallet has developed over the last decade? Has it fundamentally changed since it was founded?
PayPal wallet has become a very popular payment method, but the basic features haven’t changed much since launch. Initially, PayPal was present mainly on eBay as a sole, P2P payment method for accepting payments on eBay. Meanwhile, alongside market developments, and after the eBay phase, PayPal moved towards the merchant side. After becoming a globally accepted online payment method, PayPal moved to mobile, a really strong business foothold. This phase has marked the wallet’s second wave of growth.
Thirdly, there are two relevant segments. The former is the point where PayPal operates, which is not ecommerce anymore but just commerce. This phase is about blurring lines. The latter is the contextual commerce where the wallet gives users the opportunity to pay on platforms like Pinterest with shopping links. There, consumers can buy products just by clicking on them. In the past, PayPal was always present on the transaction side, where the merchants offered their goods, but now it is present everywhere, where shoppers are connecting with each other. PayPal’s essence is to bring businesses, merchants and consumers together. We want to be present where the transaction takes place and become the first consumer choice.
In the Netherlands, iDEAL is the dominating online payment method. What is the profile of PayPal users in the Netherlands, and in which industries/verticals is PayPal primarily used and where you see potential growth?
iDEAL has boosted the Dutch ecommerce. Many Dutch consumers still prefer this payment method. PayPal is about convenience and therefore offers the option to top up your PayPal account with iDEAL in the Netherlands, additionally to credit card connection and bank account options. There are 1.7 million active consumers in the Netherlands with a keen interest in mobile, on digital goods specifically, but also on traditional ecommerce, where PayPal didn’t use to be very present. However, it is now speeding up quickly. Even traditional Dutch household brands are accepting PayPal, showing that we have become a consumer brand and that they see the advantages of PayPal.
We have a unique proposition, offering convenience to users and merchants, for example with PayPal One Touch™. Also, our global presence provides a seamless experience across borders and allows customers to access their accounts anywhere, anytime. Our global buyer protection ensures that they can do that safely and, with our return shipping policy, we often refund the shipping costs of returns, for whatever reason, making us the most widely-used, trusted digital wallet in the world.
For the second part of the exclusive interview with PayPal download our Ecommerce Payment Methods Report 2016 here.
About Jan Willem Roest
As General Manager for PayPal Benelux, Jan-Willem Roest is committed to building PayPal as a consumer brand. Promoting its unrivalled convenience and user-friendliness is one of his key tasks and what he enjoys most about the job.
About PayPal
PayPal is the faster, safer way to make an online payment, send or receive money or set up a merchant account, committed to providing convenient payment solutions, with mobile at the heart of our strategy. PayPal is the most widely-used, trusted digital wallet in the world, with 184 million global active customers.
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