PayPal Stories Archive

 

Consumers and merchants are open to a world of opportunities in the new global economy, and no other group is taking greater advantage of this than the millennial generation.

 

79 percent of millennials (between ages 18 to 34) interviewed in Asia Pacific have shopped online within the past 12 months[1], according to a 2015[2] research by PayPal. This is higher than the global average of 73 percent, with two-in-five (40 percent) of these millennials shopping cross-border. In particular, 80 percent of millennials in Singapore have shopped online in the past 12 months[3], out of which 69 percent has done cross-border online shopping. This is the highest out of all six countries surveyed[4]  in Asia Pacific. In tandem, millennial merchants are creating new idea-based businesses, ushering a new wave of entrepreneurship that are not limited to one market as seen in PayPal merchants Naiise, Stripes, and KFit.

 

“We believe New Money unlocks greater opportunities for all our customers. It removes barriers and borders between you and the things you love, meaning you’re no longer limited to traditional borders between countries, markets, cultures and lifestyles. It has no curfew. No queues. No passport needed. You’re no longer locked into an institution, a location, a currency. With no borders and boundaries, New Money lets you buy and sell to anyone, anywhere in the world, with the knowledge that whether you’re buying or selling, your eligible transactions are protected with PayPal,” said Mr Rahul Shinghal, General Manager for PayPal Southeast Asia.

 

The survey was released as part of the Singapore launch of ‘New Money’ – PayPal’s vision for money, payments and commerce that champions a better way forward for its consumers and merchants in Asia Pacific. First launched globally through the company’s first-ever commercial at Super Bowl 50 in the United States in February this year, PayPal is now bringing its vision to customers in Asia Pacific, demonstrating how New Money means No Boundaries in a region where online shopping is driving cross-border trade.  

 

 

Intrepid at heart, millennials are bold shoppers who are comfortable shopping beyond their home country. 65 percent of Asia Pacific millennial shoppers expressed their comfort in buying from an online store in another country and 69 percent of them have purchased cross-border in the past year. As a testament to their confidence, 65 percent of the millennial shoppers surveyed have purchased in a foreign currency and 33 percent have bought from a website that was not in their native language.

 

When shopping online, it is evident that Singaporean millennials also look beyond tangible goods and instead, focus on authentic experiences that reflect their passions and interests. This is illustrated in their spending power on intangible goods such as entertainment (40 percent of millennial online shoppers purchased in this category in the past 12 months), travel (58 percent) and event tickets (54 percent). There is also a need for speed when it comes to this group of online shoppers, who expects faster and frictionless shopping experiences. Nearly half (49 percent) of millennials shoppers said that fast delivery would make them more likely to make a purchase from another country. 

 

Insights on the habits and attitudes of millennial shoppers are significant for merchants, as they are the highest spenders on online commerce as compared to all other customer demographics[5].

 

 

The allure of being an entrepreneur amongst millennials has never been greater, arising from the combination of how digital payments and social platforms have become mainstream, as well as an independent self-starter spirit that is driving a wave of innovation to achieve purpose-driven work and life.

 

“It might sound funny, but I was actually inspired by a terrible experience during an ex-girlfriend’s birthday,” said Mr Steve Feiner, founder of online florist A Better Florist. “I believe that giving and receiving flowers should be a simple yet wonderful experience for both parties. That’s when I started A Better Florist, a 90-minute free delivery service with fresh flowers that don’t dig too deep into our customers’ pockets.”

 

Millennial merchants are leveraging PayPal to enable seamless and more secure cross-border payments. PayPal is Asia Pacific’s most trusted digital wallet[6] and a popular payment method by Singaporean millennials (78 percent of millennial cross-border shoppers have used PayPal for cross-border transactions in the past 12 months) for being more convenient, faster and safer with coverage offerings such as Buyer Protection and Seller Protection. Millennial shoppers also expect the return process to be fuss-free. PayPal’s Refunded Returns[7] makes returning goods from overseas easy for consumers on behalf of the merchant.

 

“The products that Naiise carries represent local culture, local heritage and local designers, and we are able to sell a slice of local culture to any place in this world through our online store because our company is enabled by PayPal,” said Mr Dennis Tay, founder of multi-label retail store Naiise.  “For 24 hours a day, any day of the year, anywhere they are, our customers are able to experience a transparent, secure and seamless checkout experience with PayPal. This definitely keeps them coming back!”

 

As a generation of true digital natives, millennials’ penchant for technology also drives their shopping habits and is reshaping the retail space. While most online cross-border shopping still occur on a computer, millennials surveyed are more likely to use personal, hand-held devices when shopping online. Mobile purchasing among millennials in Asia Pacific is the highest in the world, with 34 percent of cross-border purchases being made on smartphones or tablets.

 

This creates a pool of opportunity for savvy businesses that are equipped to take their sales online, on mobile and in-app. PayPal recently launched One Touch™ and a newly redesigned PayPal mobile app to help businesses answer millennials’ needs by enabling a faster, more seamless payment experience online and on mobile. One Touch™ is the first-ever single touch payment experience across Android and iOS, where consumers no longer need to log in with a username and password to pay with PayPal and shop at millions of merchants globally. One Touch™ enables consumers with quick checkout which can help boost merchant conversion rates at check out.

 

 

Complementing the findings from the survey, PayPal will be rolling out a series of programs and promotions for millennials to experience how New Money means No Boundaries. The Singapore campaign will see two social media influencers Bella Koh and Aarika Lee share their stories via a video series where they surprise loved ones with unique gifts, showcasing how they are empowered by PayPal to shop across borders without fear.

 

As part of the campaign, consumers would also stand a chance to gift their loved ones with unique gifts worth S$1,000 and S$200. To enter the contest, they would need to follow PayPal Singapore’s Facebook page, share the link to the gift they want to give on their Facebook wall, and provide a description on why the person deserves it. The post will need to be tagged with the hashtag #PayPalisNewMoney and be public. Consumers can also visit a campaign site that curates the gift suggestions by Bella Koh, Aarika Lee, PayPal and Facebook fans. The campaign site and contest goes live at the end of July[8].

 

“As champions and enablers of cross-border trade, PayPal is proud to be able to connect merchants and consumers to their shared interests and passions. New Money embodies our commitment to making people’s lives easier by helping them move and manage their money more securely and efficiently,” said Mr Rahul.