The checkout process is the most threatening moment in online shopping. In this, the most unpopular moment of shopping, if the customer is unable to pay with the payment method desired for him, he threatens to cancel his order. In practice, this means that payment methods significantly determine conversion rates.
One of the most well-known platforms for processing online transactions, PayPal, has turned its attention to our country. On the occasion of the above event, Mr. Perigia, director of PayPal for Central and Eastern Europe, granted me the following interview:
What is your opinion on the E-Commerce market in Greece?
Electronic transactions are growing quite quickly in Greece. The significant increase in prospects for e-commerce is the main reason why we turned our interest to your country. We want to strengthen our presence in Greece, as we believe it is the most appropriate time and there are significant opportunities for it PayPal to allow Greek consumers and merchants to connect in a more secure and convenient way.
What is PayPal's penetration rate in Greece? How many active accounts do you have in this country? How many Greek merchants use PayPal?
We cannot disclose the local details. However globally, PayPal has 123 million active registered users. I could only say that our position in Greece is good, as PayPal's user base is growing twice as much as e-commerce in Greece. Greek shoppers are very sophisticated as they look for the best product brands and deals available both locally and abroad. Through PayPal, Greek consumers have access to unlimited opportunities for making their purchases. We're not just a payment option, we're a wallet that connects our 123 million active users across 190 countries and 25 currencies.
There is no domestic market protection mechanism in E-Commerce. What percentage of PayPal's electronic transactions in Greece refers to cross-border trade?
Again I cannot comment on specific numbers, but PayPal believes that Greek consumers are ready for new technologies that will make payments easy and simpler. Although our concern is more around the readiness of marketers to grasp the opportunities that mobile business gives them. So does a Greek buyer. He makes significantly more transactions from his mobile device when he makes his online purchases abroad than in Greece. And this is simply because Greek stores are not quite ready for mobile business. It is very important for merchants in Greece and the rest of the region to realize the percentage of their traffic that comes from mobiles or tablets. Increasingly, websites are accessed through a mobile device, and for that, the end-to-end experience will have to be rethought. Marketers who are early adopters of enterprise mobile will gain a huge competitive advantage.
Are you planning to set up a Greek customer service team?
The internet is in our DNA and therefore such a company does not necessarily need to open a local office or cooperate locally to offer its services. We have maintained and developed relationships with the Greek market, both with consumers and with entrepreneurs. We understand the need to have the basic information about our system in your native language. However, we must not forget that at this stage, PayPal is mainly dedicated to people who want to go beyond the domestic market and language.
Do you have plans to run PayPal Here Mobile and PayPal Here Tablet in Greece as well?
So far we have introduced the PayPal Here with huge success in five international markets, USA, Canada, Japan, Australia and Hong Kong. The ultimate goal is to spread PayPal Here globally but, as you can understand, this takes time as laws and technologies are different.
Its version is now being tested in Europe PayPal Here Chip & PIN, which will be widely available this summer in the UK. Later, we will bring it to other European countries.
The Tablet version of PayPal Here has only recently been launched in the US market and will currently be tested there before we decide to introduce it to further markets.
Do you have plans to run your Hands Free Payments app in physical stores in Greece as well?
I assume you are referring to the application PayPal in store which we have introduced to Home Depot in the USA andMcDonald's in France. In this case, the situation is similar to that of PayPal Here. First we want to check, test and then learn. Next, we will expand our application globally. For those unfamiliar with this payment method, I will explain how PayPal in store allows consumers to make purchases without the limitations of technology, such as having to use a specific mobile phone. All that is required is the user's PayPal phone number or account details and password. It is also PayPal's first priority to offer brick-and-mortar users the speed, security and convenience they expect from PayPal online.
Worried about other competitors like Square attacking PayPal?
We offer something different than the Square. PayPal offers a complete package of payment solutions for online, offline and multi-channel businesses. Other companies in our space may compete with us in one or some of our products. But no one else offers the depth and breadth of PayPal solutions that it provides to small and large retailers.
At present the mobile business represents only 1-2% of all online shopping in Europe. When do you think mobile payments will matter?
Over the years, we have learned that making assessments about this dynamically changing ecosystem is a very complex business. Let me give you some final facts. We predicted that 2012 would be a big year for mobile. While last year we expected to process $10 billion in mobile payments, at the start of 2013 we will exceed that forecast and process $14 billion in mobile payments for our customers which is 250 percent more than $4 billion in payments we processed in 2011.
This admirable growth in mobile transactions is because PayPal offers a better experience and solves real customer problems, not just creating a new way to pay.
Mobiles only make life easier when you can avoid parking tickets thanks to a text sent to your phone, or order and pay for your perfect shaker without ever taking your wallet out of your pocket. We look forward to introducing more of these new ways for our customers to shop and pay over the next year.