PayPal Global CEO: Mobile payment will be eliminated password era

Mobile payment is now a very popular concept in the second quarter of this year's report, PayPal's performance was much better than that of other businesses. PayPal's revenue reached 1.6 billion U.S. dollars, an increase of 21%, accounting for ebay's revenue of 42%. But for Pyapal, this is a time when opportunities and challenges coexist. Because, the mobile payment came. Mobile payments will be a new battleground, both in local and global markets. Locally, mobile commerce in the United States is growing at a rate of 13%, and China is 60%. A PayPal global Cross-border e-commerce report shows that 76% of consumers in the world's five largest markets are willing to make more use of mobile terminals to complete cross-border online transactions. The pattern of mobile payments is undecided. Google, Apple, mobile payment companies, banks, operators and other new forces to grab food, menacing. This makes it hard for PayPal, the world's biggest internet payment, to live comfortably. Rookie Square, for example, has launched a mobile swipe card, as well as a register and pay with Square, which has a lot of land on mobile payments. This also forces PayPal to make changes quickly. In the July 6, the central bank issued a third-party payment license, PayPal did not get a third-party payment license, and the same foreign-funded prepaid card Enterprise Edenred is honored to be crowned. This makes PayPal's individual payment products inaccessible to China, missing 600 million of the opportunities brought by Chinese netizens. Recently, this reporter exclusive interview PayPal Global CEO David Marcus (David Marcus). He elaborated on the trend of mobile payments, PayPal in mobile payment practices, as well as mobile payments brought about by the industrial pattern change. Rapid growth in mobile business 21st century: ebay has just made its second-quarter earnings, and PayPal's revenue is growing very well. Among them, mobile payment in the whole PayPal business accounted for how much? David Marcus: When I first joined, mobile income was less than 1 billion dollars, which accounted for the overall income of the 1%~2%, we expect to reach 20 billion dollars this year, this ratio has been more than 10%, or even higher. In 3 years, it turned 20 times times. This is an amazing growth. I think that mobile commerce will continue to grow. Because, no matter what kind of transaction, the handset becomes a part of the transaction. This quarter, PayPal's active registered account number increased by 4.7 million, to 132 million, an increase of 17%. "21st Century": PayPal launched a PayPal-related hardware terminals, the future will introduce more hardware terminals to carry mobile payment scheme? Will there be a PayPal payment solution for the phone? David Marcus: To be sure, we will not push the phone, but we will be based on the actual problems faced by users in the future to introduce the corresponding hardware. We have launched the PayPal here business for the first time, and released the relevant hardware, we have released a triangular small card reader, IThey also launched PayPal here chip and pin device for the European market. "21st Century": mobile payment is just a tool, how PayPal through the mobile payment to pry the line of mobile electricity dealers? David Marcus: PayPal last year moved to pay a turnover of 14 billion U.S. dollars, this year is expected to reach more than 20 billion U.S. dollars. This is just the volume of electricity sold through the mobile phone, and does not include physical shop purchases and offline trading. For the latter, but also need to vigorously cultivate, because E-commerce is a trillion-tier market, offline market will reach 10 trillion levels. We've got a 10 times times better chance than the online market, and we're not open yet. "21st century": in China, the mobile commerce country develops rapidly, the average annual growth rate reaches 60%. What about the growth of mobile commerce in the United States? David Marcus: America's mobile business market is growing at 13%, and it is clear that China's market is growing at a far faster pace, as in other areas. If there is a chance, we hope to participate in promoting the growth of China Mobile's electricity business. "21st century": in the original payment ecology, PayPal relies on credit card companies and banking institutions. Despite the introduction of the onsite credit for the bill Me later service, the payment ecology has not changed. In the era of mobile payment, PayPal how to weaken the role of credit cards, banks, to build their own-centric ecosystem? David Marcus: We provide payment services in the future, we will also provide financial services. You will see the bill Me later business will be full of vigor and hope to be available to consumers all over the world. To the merchant, we also assist them to take instalment. If a merchant sells something expensive, it can increase its sales by installment. In fact, consumers will pay a total of 6 times times to 12 times times the money, the merchant can get money through PayPal immediately. In the future, the provision of payment services and financial services to merchants and consumers will boost our business growth. Finance will also play an increasingly important role, and we are increasing our investment in this area. In the mobile era, we should provide consumers with a variety of options. For example, the US Rewards program is popular and there are credit cards that can accumulate airline mileage. Then, users pay to remind users what kind of card they want to use, let them make their own choices. We also want to continue to expand our service capabilities in order to allow everyone to enjoy our services and to trade on our network. As for the mobile age, the role of banking institutions and credit card companies is weakened. The era of the elimination of passwords "21st century": future payments, electronic wallet and card payment is a trend. What do you think? David Marcus: In the future, we will pay without cards instead of cards. It is a fully documented model based on large amounts of data, and we will share data with payment handlers, and they can improve rates. The digital wallet will be a collection of various means of payment in life, including bank accounts, credit cards, debit cards, and financial letters.With the product. 21st Century: There have been a lot of news reports that PayPal does not support NFC payments, while Google Wallet (Google Wallet) supports NFC. What do you think of NFC payments? David Marcus: Google Wallet completely redefined its scope. But we are not optimistic about current NFC payments, only mobile operators can secure access to NFC, and our mode of operation is to identify the whole thing with credit card issuers, mobile operators, handset manufacturers, and operating system operators. While there should be a security element in the current mobile payment ecosystem, a combination of NFC does not really solve the problem, because it's not a bad choice to use if you're using a recharge phone, unlocking and waiting for 3 seconds. And, in NFC, we have no advantage. Of course, in some cases, NFC is very convenient, such as Subway, bus and other public transport, but for the avoidance of queuing, NFC is not able to do this. In the future, you should be able to shop and pay at any location in the store, not now in a specific location. If this is not the case, it is actually a hindrance. "21st century": PayPal faces multiple competitions on mobile payments, such as Google, Apple, Square and Facebook, as well as a large number of mobile payment companies in the horse-racing enclosure. And Google, Apple have their own account and payment system. What does PayPal do with mobile payments compared to these competitors? David Marcus: PayPal has a leading position in the mobile field, which makes us feel good. We started early and made a lot of innovation, and the results of the online innovation are endless. Mobile payments have been going on in our field very early and there are a lot of products that have been implemented in mobile payment. On phone payments, we recently launched SDK (software tools development kits) for different scenarios, such as iOS, Android phones and offline purchases. I think that mobile payments include online (online) and offline (offline). Online means that we buy through a mobile device. What we need to do is to improve the mobile payment experience and optimize the online website to make it more mobile. Online market, we work with NCR (a world-renowned ATM company) and other POS companies to integrate payment solutions with POS systems to enable mobile payments between POS systems and mobile devices. Offline innovation includes two aspects: first, avoid queuing. For example, we are developing a series of solutions that allow users to avoid a crowded long queue in a café, or open a PayPal application and log in to a café to place orders directly. In restaurants, users can clearly see the amount of consumption, after the meal, can quickly pay off, without waiting for the waiter to come to the checkout. Second, we are trying to skip the password. I think that mobile payment will eventually eliminate the password, in a biometric way to complete the payment, such as scanning the thumb toMake phone payments. In addition, I want to emphasize that PayPal is developing its business through leading innovation and mobile commerce. 70% business from non-ebay "21st century": PayPal in China still has not been licensed, which makes PayPal in China can not open personal business. What are your expectations for the licence? How to introduce PayPal's innovative solutions in the United States to China? David Marcus: We are willing to participate in the Chinese market, for Chinese consumers to bring a lot of innovative results. But we also need to communicate further with the relevant government departments. We have maintained close communication with relevant regulatory bodies such as the Central bank for the application of licences. What we can do now in China is to help Chinese enterprises to explore international market and find foreign trade opportunities through cross-border development. China has 5 million of small enterprises engaged in foreign trade export business, of which only a small part has begun to export business through Cross-border E-commerce. I have some interesting data about how we see the Chinese market. We are in England, the United States, Germany, Australia and Brazil conducted an online cross-border trade survey, we found that the five major Cross-border E-commerce target market demand for Chinese goods in 2013 will reach 67.9 billion yuan, to 2018, this figure is expected to double, surging to 144 billion yuan. This is a huge opportunity for China's high households to export products. Because Chinese goods are invincible in the world. Our team in China has been communicating with our merchants to discuss how to use PayPal's mobile shopping website to optimize products to help them move their shopping sites so they can grasp the trend of global consumer mobile online shopping. "21st century": ebay is the platform for PayPal, but also because of ebay's relationship, PayPal has not developed very well in some countries, such as China. In the mobile ERA, how does PayPal reconcile its relationship with ebay, and how does the dependency on the platform weaken? David Marcus: In China, PayPal is working with ebay to help Chinese businesses develop global markets through online foreign trade, and we're doing very well. In a highly competitive market in the United States, we have provided payment services to many market organizations. Currently, PayPal has 70% of its payments from non-ebay merchants and marketing agencies, such as Etsy for large handicrafts online markets. I think we are not mutually exclusive from the ebay platform and the business itself. In some cases, there are always institutions competing with ebay. We are also very good at working with different marketing partners. "21st century": some comments that PayPal is a U.S. market-centric enterprise, the process is very American, in other countries, the localization of innovation is not much. How do you rate this? David Marcus: Indeed in the past, we have been the United States as the core business market, but now, we are different countries, the degree of globalization, we have adjusted our strategic and technical capabilities. thanFor example, in China, helping online foreign merchants to realize the mobile shopping site is one of our strategic priorities. For the technical features of Chinese merchant website, we have developed a fully automated website optimization solution. In Brazil, we have established partnerships with major mobile operators. For example, we have developed a complete new scheme for Zeebo users to use their mobile phones to create Zeebo accounts, smartphones, and functional handsets. So we have millions of users in a market where smartphone penetration is not very high. "21st century": in China, there are also third-party payment companies intended to provide peer-to-peer network lending services. What do you think about peer-to-peer trends around the world? Will PayPal be involved in this business in the future? David Marcus: I think Peer-to-peer is a powerful thing. On the Internet, new things are emerging, one of which is bitcoin. The emergence of bitcoin has subversive consequences, it is a dispersed cipher currency, people do not need to use financial institutions to trade. We want to promote these innovative businesses, but it depends on their maturity. Those who engage in peer-to-peer borrowing can do it in PayPal. For the new cipher digital currency, we want to use PIN code to determine whether it has matured and how regulators perceive it.