How to Capitalize

on the Global
E-Wallet Opportunity

My Wallet

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1 Table of Contents

01 Introduction Page 01

02 The payments sea change Page 02

03 Youth, trust, and trends Page 03

04 Braintree’s payments technology

paves the way
Page 04
 1 Introduction

Introduction

Just as many consumers have changed how they shop, with many now preferring to buy online
from the comfort of their couch or via mobile, some arethey're also changing how they pay.
Across the globe, e-wallets are now the leading form of payment for online shoppers, with their global
market share eclipsing that of credit cards and bank cards, according to a new report from yStats.1

“Across the globe, e-wallets

are now the leading form of
payment for online shoppers,
with their global market
share eclipsing that of credit
cards and bank cards...”
For merchants, this is a game-changing trend that could potentially open the doors to whole new
swaths of customers and higher conversion rates. The key to capitalizing on it? Taking advantage
of a payments partner like Braintree, which can help you caters to changing consumer preferences
and helps make it easier to expand the payment capabilities of your global business.

1
From “Global Online Payment Methods: Full Year 2016,” published March 1, 2017 by yStats.com, available at https://www.ystats.com/market-reports/
global-online-payment-methods-full-year-2016-2/
 2 The payments sea change

The payments
sea change
When it comes to global ecommerce, payment by card is no longer
king. “E-wallet is expected to remain the payment method
with the highest share of the global ecommerce market through
2020," according to the Stats Global Alternative Payment
Methods: Full Year 2016 report.2

A s alternative payment forms become increasingly
common, and supersede traditional bank
and credit cards, consumers are relying on e-wallets
more and more. Case in point: e-wallets, such
as PayPal, accounted for 31 percent of worldwide
ecommerce sales in 2015. 3
equally prevalent in emerging markets. For
instance, in China, which claims the world's largest
online retail market, 56 percent of online
purchases in 2016 were made via e-wallets.5

56%
31%
E-wallets, such as PayPal,
accounted for 31 percent
of worldwide ecommerce
sales in 2015. Among e-wallets, consumers have also made their
preferences known, with PayPal serving as the
most popular e-wallet in many key markets. For
example, 41 percent of shoppers in the UK
use PayPal to make online purchases, according
to the yStats report.5
And it's a truly global shift. E-wallets represented
the most common form of payment in Western
Europe, and accounted for more than a third of
payments in Asia Pacific, North America, Latin
America, and Eastern Europe. Their use has proven

2-5
IBID
 3 Youth, trust and trends

Youth, trust,
and trends
There are several factors driving this payments And, through the advent of more friction-free
transformation. First up -- younger people. In options like PayPal One Touch™, online buyers say
a recent PwC report, researchers noted that 85 they would be 40% more likely to shop with a
percent of the global population, and 90 particular online retailer if a one-click
percent of the world's under-30 population, live in checkout were an option.8 Research shows that
emerging markets. “Millennials' comfort with online shoppers are
technology is driving businesses to provide new also apt to use e-wallets when making
and more innovative ways of enabling cross-border purchases.9
transactions, reflecting the demands of this
tech-savvy generation," the authors say.6 In the US, shoppers still rely primarily on
cards, but PayPal leads the pack when it comes to
“Millennials' comfort alternative payment methods.10 The brand's
with technology is driving reliable reputation is also a big factor for stateside
businesses to provide new shoppers. A recent Forrester report notes
and more innovative ways of that when asked who they trust to provide a digital
enabling transactions, wallet, 43 percent of US consumers cited PayPal.
reflecting the demands of It was respondents' top choice.11
this tech-savvy generation,..."

For consumers, trust in a brand also plays a

key role. PayPal, for example, already has more
than 210 million customers around the globe,
and so the sight of the PayPal button at
checkout can have a big impact on the battle
against cart abandonment. According to
yStats, online shoppers in Germany, Spain, and
A recent Forrester report notes that when asked who
Italy actually prefer PayPal or similar payment
they trust to provide a digital wallet of US
methods over bank and credit cards.7 consumers cited PayPal. It was respondents' top choice

6
From “Emerging Markets: Driving the Payments Transformation,” published July 2016 by PWC, available at http://www.pwc.com/gx/en/financial-services/
publications/assets/pwc-emerging-markets-12-July.pdf
7
From “Global Online Payment Methods: Full Year 2016,” published March 1, 2017 by yStats.com, available at https://www.ystats.com/market-reports/
global-online-payment-methods-full-year-2016-2/
8
From “2014 Internet Retailer Mobile 500,” published in 2014 by Internet Retailer, available at www.top500guide.com
9
From “Global Online Payment Methods: Full Year 2016,” published March 1, 2017 by yStats.com, available at https://www.ystats.com/market-reports/
global-online-payment-methods-full-year-2016-2/
10
IBID
11
Disrupting Finance: Digital Wallets,” published on April 7, 2016 by Forrester, available at https://reprints.forrester.com/#/assets/2/133/'RES116772'/reports
 Youth, trust and trends

Youth, trust,
and trends
Meanwhile, the retail industry is evolving to support the growth of e-wallets even more in the future.
The same Forrester report notes that online shopping will continue to grow and that in-store and online
experiences are beginning to merge.12 In many cases, customers can already pay via their e-wallets in
the physical store -- and so what now seems like a high-tech luxury may soon be an everyday occurrence.

So what's this all mean? E-wallets like PayPal are not only here to stay, they're becoming a
payments force. And merchants who evolve to meet their customers' payment preferences will likely
come out ahead.

12
IBID
 5 Braintree’s payments technology paves the way

Braintree's payments
technology paves the way
Merchants can capitalize on this online opportunity
and e-wallet explosion first by optimizing their
mobile channels. Braintree, a PayPal service, can
help do just that by providing a mobile-first
payments system, which easily integrates leading
global payments components.

Braintree's payments system gives you easy access to

consumers in countries all over the world. Mobile
payments become simpler, and customers who use
PayPal or any other payment method get
just what they need. Even in places where adding
country-specific payment methods is necessary,
Braintree helps merchants integrate, add the best
options, incorporate PayPal, and helps ensure
that payments become a more seamless part of the
customer experience. Integrate Braintree and
shoppers pay via their preferred method, avoiding a
step-heavy checkout cluttered with numerous
payment options.

The future for e-wallets is bright and appears to be

getting brighter. Tap into Braintree's payment
system, and you'll help ensure that your company can
quickly optimize your payments to account for
e-wallet growth -- providing the tools to help enable
you to cater to the inevitable changes in
consumer behavior and payments preferences that
are yet to come.