PAYPAL CROSS-BORDER CONSUMER RESEARCH 2018
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PayPal Cross-Border Consumer Research 2018
Leveraging cross-border trade insights to increase sales
Cross Border Insights Research 2018
Advancement of technology is Understanding that we are This survey is designed to gain
helping to open up commerce going through a commerce
opportunities for everyone - insight into 3 main areas:
revolution, PayPal in
across borders, anywhere, partnership with Ipsos, • How online commerce, and
anytime and via any device
conducted a global 31 market specifically cross-border
survey with approximately commerce is evolving
34,000 consumers to examine
how people shop online and • How and why consumers shop
across borders. online domestically & across
borders
• How consumers pay for
domestic and cross-border
©2018 PayPal Inc. Confidential and proprietary. 2
transactions
Research methodology
This study was conducted across 31 markets and approx. 34,000 consumers globally.
Fieldwork Sample, per market
This research was 31 markets
Global Fieldwork: carried out to Sample of c.2000 in UK,
Mar-May 2018 Russia and Poland, Use an Internet-
the international enabled device1
c.1000 in other markets
quality standard
for market Nationally representative
of online population
research, ISO Data weighted to adjust
Online Aged 18+2
20 minute 20252:2012 for panel bias based on
survey Respondents recruited
questionnaire external trend data
from online panels
Questionnaire
Screening Transaction & spend: Cross-border Drivers, barriers and Cross-border
Past 12 Months & transactions & spend attitudes to cross- payment
Next 12 Months border shopping
1.Desktop computer/Laptop/ notebook computer/Tablet /Smartphone/Some other type of mobile phone/Electronic organizer / PDA with
©2018 PayPal Inc.
wireless voice and data features/Games console with Internet connectivity (e.g. Wii) /Smart TV
Confidential and 2. In UAE no quotas were set, sample achieved through mail-out to sample nationally representative of general population, screened for 3
proprietary. internet use. In European countries sample representative of online population aged 18-74.The Cross-Border Opportunity © 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Online and cross-border commerce size and growth estimates
US and China are the biggest markets in terms of online spend, but Japan and India are growing fast
Total domestic spend 2017 ($US bn) Compound annual growth rate: total e-commerce (CAGR)
US$BN Total x-border online spend 2017 ($US bn) Compound annual growth rate: mobile commerce (CAGR) CAGR (%)
700 100
650
90
600
550 80
500 70
450
60
400
350 50
300
40
250
200 30
150 20
100
10
50
0 0
US CA UK IRE FR DE IT ES NL SE BE NO AT RU HU PL CZ GR IL UAE BR MX ARG SA IND CN JP SN HK AU PH
North America Western Europe Eastern Europe Middle East Latin America Africa Asia Pacific
©2018 PayPal Inc. Confidential and proprietary. Source: Ipsos PayPal Insights 2018.Incidence of online cross-border shopping
Shopping across borders is most prevalent in Ireland, Austria and Israel
% Shop domestically only % Shop domestic and x-border % Shop x-border only
7% 4% 4% 5% 7% 6% 7% 7% 1%
5% 5%
8% 9% 9% 8% 10% 10% 8% 10% 8% 10% 8% 8%
14% 12% 12% 12% 14% 13%
19% 16% 16%
27%
27% 34% 36% 27%
30% 35%
35%
40% 45% 40% 45%
45% 47%
54% 45% 53%
56% 49% 50%
55% 57% 56%
56% 59%
56% 62%
71% 64%
65% 94%
66% 68% 66%
62% 60% 62%
57% 57%
51% 49% 52% 50%
46% 44% 43%
37% 40% 39% 38% 39%
35% 33% 34%
28% 30% 27% 25%
18% 21%
16%
US CA UK IRE FR DE IT ES NL SE BE NO AT RU HU PL CZ GR IL UAE BR MX ARG SA IND CN JP SN HK AU PH
North America Western Europe Eastern Europe Middle East Latin America Africa Asia Pacific
©2018 PayPal Inc.
Confidential and Q27. Thinking about shopping online, from which of the following countries or regions’ websites have you purchased Source: Ipsos PayPal Insights 2018. 6
proprietary. from the past 12 months? Please include your home country if applicable.Base: Online shoppers (base size in appendix)Incidence of online cross-border shopping
Consumers in the Middle East are most likely to shop cross-border
% Shop domestically only % Shop domestic and x-border % Shop x-border only
7% 9% 10% 8% 8%
14% 12%
41% 40%
44%
48% 47%
50%
56%
52% 52%
48%
43% 44%
38%
30%
*Results are among all
consumers surveyed in each
region, not weighted for
population size North Western Eastern Middle Latin Africa Asia
America Europe Europe East America Pacific
©2018 PayPal Inc.
Confidential and Q27. Thinking about shopping online, from which of the following country or regions’ websites have you purchased in 7
proprietary. the past 12 months? Please include your home country if applicable.Base: Online shoppers (base size in appendix)The majority of cross-border purchases are still on a computer
APAC markets are more likely than most to make cross-border purchases on an alternative device
Average proportion of x-border purchases in past 12 month made on each device
Desktop/laptop/notebook Smartphone Tablet Other device (e.g. Smart TV, games console, feature phone)
2% 1% 2% 2% 1% 3% 2% 2% 2% 2% 2% 2% 1% 2% 2% 2% 2% 2% 3% 3% 4% 4% 2%
6% 4% 7% 6% 7% 8% 6% 5% 2% 5%
7% 8% 8% 9% 7% 4% 5% 5% 6%
10% 9% 7%
11% 16% 10% 14% 11% 14% 5%
5%
9%
9% 11%
9% 11% 8%
9% 9%
13% 15% 14% 13% 17% 24%
23% 20% 19% 23%
15% 19% 22% 21% 26%
15% 22% 21%
20% 26% 24%
28% 28% 31% 28% 22%
31% 36%
32% 39%
40% 42%
76% 77% 77%
72% 73% 76% 73% 71% 72%
69% 68% 69%
65% 68% 65% 70% 66%
63% 62% 65%
61% 61% 59% 59% 59%
50% 53% 51%
44% 46% 42%
US CA UK IRE FR DE IT ES NL SE BE NO AT RU HU PL CZ GR IL UAE BR MX ARG SA IND CN JP SN HK AU PH
North America Western Europe Eastern Europe Middle East Latin America Africa Asia Pacific
©2018 PayPal Inc.
Confidential and Q33. Thinking only about the purchases you make on websites in other countries, what proportion of your purchases in 8
proprietary. the last 12 months do you think were made using each device? Base = Cross border shoppers (size shown in appendix)The majority of cross-border purchases are still made via desktop,
laptop or notebook
Shoppers from the Middle East, Africa, LATAM and APAC are most likely to use a mobile device
Average proportion of x-border purchases in past 12 month made on each device
Desktop/laptop/notebook Smartphone Tablet Other device (e.g. Smart TV, games console, feature phone)
3% 2% 2% 4% 3% 4%
5% 7%
10% 6% 9% 9%
12% 7%
22%
21% 20%
31% 28%
27% 32%
68% 71%
64%
59% 59% 59%
56%
*Results are among all
consumers surveyed in each
region, not weighted for
population size North Western Eastern Middle Latin Africa Asia
America Europe Europe East America Pacific
©2018 PayPal Inc.
Confidential and Q33. Thinking only about the purchases you make on websites in other countries, what proportion of your purchases in 9
proprietary. the last 12 months do you think were made using each device? Base = Cross border shoppers (size shown in appendix)China and the US are the most popular cross-border destinations for
Global shoppers
Western European markets are the next most popular along with Japan
Top online destinations among all online shoppers surveyed*
(% of online shoppers have shopped in each country in past 12 months)
UK/GB China
14% 26%
USA Germany
21% 10% Japan
5%
*Results are among all consumers
surveyed, not weighted for population
size
©2018 PayPal Inc.
Confidential and Q27. Thinking about shopping online, from which of the following country or geographies’ websites have you purchased in the 10
proprietary. past 12 months? Please include your home country if applicable.Base: Online shoppers (base size in appendix)Clothing and apparel is the most popular category for cross-border
purchases followed by Consumer Electronics and Toys
Top cross-border categories among all online shoppers surveyed*
(% of x-border shoppers shopping x-border in each category)
Clothing/apparel, footwear and accessories 68%
Consumer electronics, computers/tablets/mobiles &
53%
peripherals
Toys and hobbies 53%
Jewellery/watches 51%
Cosmetics/beauty products 46%
Collectibles, memorabilia and art 42%
Sports and outdoors equipment 40%
*Results are among all consumers surveyed,
©2018 PayPal Inc.
not weighted for population size
Confidential and Q28. In the past 12 months what kinds of products have you purchased from websites in other countries? 11
proprietary. Base: Cross-Border shoppers (size shown in appendix)Developed markets such as the US, UK and China exhibit a stronger
preference for Global stores or those in their own language
I would not feel comfortable I prefer large 'global' stores It is not important to me if I trust online stores from
making purchases from a foreign (e.g. Amazon or eBay) when the online retailer is based other countries as much as
website that is not in my own purchasing from another overseas or not stores from the country I
language country live in
% Agree
90%
80%
70%
60%
50%
40%
30%
20%
10%
US CA UK IRE FR DE IT ES NL SE BE NO AT RU HU PL CZ GR IL UAE BR MX ARG SA IND CN JP SN HK AU PH
North America Western Europe Eastern Europe Middle Latin Africa Asia Pacific
East America
©2018 PayPal Inc.
Confidential and Q34b/Q47. To what extent do you agree or disagree with each of the following statements? 12
proprietary. Base: Online shoppers (size shown in appendix)Attitudes to cross-border shopping vary dramatically across regions with
North Americans most likely to be loyal to global or home websites and
more sceptical of those from other countries
I would not feel comfortable I prefer large 'global' stores It is not important to me if I trust online stores from
making purchases from a foreign (e.g. Amazon or eBay) when the online retailer is based other countries as much as
website that is not in my own purchasing from another overseas or not stores from the country I live
language country in
% Agree
90%
80%
70%
60%
50%
40%
30%
20%
10%
North America Western Europe Eastern Europe Middle East Latin America Africa Asia Pacific
©2018 PayPal Inc.
Confidential and Q34b/Q47. To what extent do you agree or disagree with each of the following statements? 13
proprietary. Base: Online shoppers (size shown in appendix)Cost is the main driver of cross-border
shopping with availability also featuring
for almost half
Top reasons for shopping from other countries, among all cross-border
shoppers surveyed* (% selecting each statement)
#1 Better Prices (72%)
#2 Access to items not available in my country (49%)
#3 I can discover new and interesting products (34%)
#4 Higher product quality (29%)
#5 Shipping is more affordable (24%)
*Results are among all consumers
surveyed, not weighted for population size
Q34c. You say you have made purchases online from the “country”/”countries” shown at the top of the “column”/”columns” on the right. Please select your
14
main reasons for shopping on websites from this/these “country”/”countries” rather than the country where you live Base: Cross Border shoppers spending in
each country.Savings, shipping and security continue to
drive international sales amongst cross-
border shoppers
Top potential drivers for cross-border purchasing, among all cross-border
shoppers surveyed* (% selecting each statement)
Cheapest total cost (including
#1 shipping) (44%)
#2 Free shipping (44%)
#3 Secure way to pay (38%)
#4 Can find items that are hard to
find locally (38%)
#5 Costs shown / payment possible
in your local currency (34%)
Q39. Which, if any, of the following would make you more likely to buy from a website in another country? *Results are among all consumers 15
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Base: Online shoppers in each country. surveyed, not weighted for population sizeCost and concerns around speed and quality of
delivery are the most cited deterrents for
shoppers
Top barriers to shopping cross-border, among all cross-border shoppers surveyed*
(% selecting each statement)
#1 Delivery shipping costs (25%)
#2 Delivery time not fast enough (24%)
#3 Concern that I may not receive the
item (24%)
#4 Having to pay customs duties/ fees and/
or taxes (24%)
#5 Difficult process for returning products
(22%)
Q36. Which, if any, of the following reasons prevent you from making purchases from websites in another country (more often)?
*Results are among all consumers surveyed, 16
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Base: Online shoppers in each country. not weighted for population sizeThree in four would prefer to have an option to pay in local currency
while six in 10 check conversion rates before paying suggesting currency
is as much of a barrier as the foreign language
Attitudes to currency conversion among all online shoppers surveyed*
(% of online shoppers who agree with each statement)
I would prefer to have the option of paying either in local currency
or my own currency 76%
I check currency conversion rates before paying in foreign currencies 62%
I would not feel comfortable buying from a foreign website that is 57%
not in my own language
I have paid in a foreign currency in the past 47%
I would not feel comfortable paying in a foreign currency 47%
My bank charges me for paying in foreign currencies 47%
I have bought on websites not in my own language in the past 43%
Fees charged by Paypal are generally lower than other payment
35%
methods
PayPal charges me for paying in foreign currencies 27%
*Results are among all consumers surveyed,
©2018 PayPal Inc.
not weighted for population size
Confidential and Q47. Please state whether you agree or disagree with each of the following statements
17
proprietary. about shopping online in other countries: Base: Online shoppers in each countrySecurity and convenience are key factors in determining preferred
payment method for cross-border shopping
Reasons for payment method preference among all cross-border shoppers surveyed*
(% of all x-border shoppers who gave a preference selecting each statement)
Secure way to pay 44%
Convenient way to pay 36%
Reasons for payment method preference among
Accepted allretailers
by most cross-border shoppers surveyed
30%
Payment is processed quickly 29%
Well-known, trusted brand 27%
Purchase protection (e.g. can claim a refund if item is not received
24%
or not as described)
Faster checkout 24%
I don’t have to share my personal or financial details with the seller 23%
I can see what price I will be paying in my own currency 18%
Habit 18%
*Results are among all consumers surveyed,
not weighted for population size
©2018 PayPal Inc.
Confidential and Q44d. For what reasons is this your preferred payment method for online transactions/purchases from websites in another
18
proprietary. country? Base: Cross Border Shoppers with a preferenceSecurity and trusted payment are more common drivers for those
purchasing cross border in Africa whilst in Europe shoppers are less
likely to mention security concerns
Barriers to shopping or shopping more often Drivers for shopping online Reasons for Payment method preference
(% online shoppers selecting each as making them more (% domestic shoppers/cross-border shoppers with a preferred
(% online shoppers selecting each as a barrier)
likely to shop) payment method selecting each as a reason for their
domestic/cross-border payment preference )
19% 46% 49%
14% 43% 53%
Concern about security 16% 43% 47%
Reasons for domestic
payment preference
Barriers to Domestic
Drivers for Domestic
19% Secure way 42% 42%
of my financial or 24% 57%
Secure way to Pay 53%
to Pay
personal details 26% 50% 42%
Shopping
Shopping
22% 47% 48%
19% 27% 24%
14% 21% 28%
19% 19% I don’t have to share my 26%
Concern about identify 21% Visible, trusted 23% 24%
24% 38%
personal or financial 29%
theft/fraud payment logo
25% 22% details with the seller 24%
24% 28% 20%
21% 35% 47%
Reasons for cross-border
14% 37% 48%
Barriers to Cross-border
Drivers for Cross-border
Concern about security 13% 35% 38%
payment preference
16% Secure way 38% 38%
of my financial or Secure way to Pay
15% to Pay 48% 46%
personal details 15% 46% 39%
Shopping
Shopping
17% 39% 43%
22% 22% 27%
17% 18% 26%
16% 16% I don’t have to share my 20%
Concern about identify 18% Visible, trusted 20% 22%
personal or financial
theft/fraud 19% payment logo 36% 25%
18% 21% details with the seller 22%
20% 26% 20%
Q36/36b. Which, if any, of the following reasons prevent you Q39/Q39a. Which, if any, of the following would make you Q44c/Q44d. For what reasons is x your preferred payment method for
from making purchases from websites in your own country/ in more likely to buy from a website in your own country/in online transactions/purchases from websites in your own country/in
another country (more often)? Base = All online shoppers another country? Base = All online shoppers another country? Base = All domestic/cross-border shoppers who have a
©2018 PayPal Inc. preference
Confidential and *Results are among all consumers surveyed in the region, 19
proprietary. not weighted for population sizeLikelihood to continue without PayPal varies considerably by market
with Germany, Netherlands and Australia having a particularly strong
affinity to the brand
Very likely Quite likely Not very likely Not at all likely
100%
8% 11% 8% 9% 7% 8%
13% 11% 14% 12% 14% 15% 12% 17% 16% 10% 13% 16% 14% 13% 14%
21% 21% 24% 22% 21%
28% 29% 29%
80% 36%
27% 28% 44% 14% 25%
35% 27% 32%
30%
32% 33% 31% 35% 37% 29%
27% 37% 37% 42% 32% 46%
60% 35% 27% 30% 33%
61% 28% 59%
29%
41%
40% 31% 37%
38% 30% 32% 36% 30% 49%
37%
27% 34% 28% 30% 26% 31%
38% 28% 28% 36% 30% 30%
44% 26% 24% 37%
20% 34% 31%
19% 15% 20% 29%
21% 17% 18% 22% 13% 25% 20% 17% 20%
19% 15% 17% 12% 18% 15% 19% 13% 14%
10% 11% 8% 10%
6% 4% 4% 8% 12% 9% 4% 2% 6% 3%
0% 2%
US CA UK IRE FR DE IT ES NL SE BE NO AT RU HU PL CZ GR IL UAE BR MX ARG SA IND CN JP SN HK AU PH
North America Western Europe Eastern Europe Middle East Latin America Africa Asia Pacific
©2018 PayPal Inc. Q44E. Please now imagine that you are about to make a purchase from a website in another country, and PayPal is not
Confidential and an accepted payment method. How likely would you be to continue with the payment if PayPal was not available as a Source: Ipsos PayPal Insights 2018.
proprietary. method of payment?Reimbursement of payment and availability of PayPal are considered
the most attractive incentives for using PayPal cross-border
Incentives for Choosing PayPal (%)
PayPal being offered as a payment option on websites where I shop 33%
Ability to get money back if an item does not arrive or is not as described 33%
Ability to make a payment without putting in my card details 30%
Ability to claim a refund on postage from PayPal if I have to return the purchase 21%
PayPal always displays any additional fees (e.g. tax, customs fees/duties) for international
21%
purchases before checkout
Lower fees for paying in a different currency 20%
Better currency conversion rate compared to other payment methods 17%
PayPal One Touch for faster checkout, where you can skip entering your login and billing
15%
information
Ability to earn my normal loyalty points/cash back from my credit card 13%
Source: Ipsos PayPal Insights 2018
©2018 PayPal Inc. Q46. Thinking about PayPal as a method of payment for online purchases, which of the following, if any, would be most
Confidential and likely to make you choose to use PayPal instead of other payment methods for making purchases from websites in other 21
proprietary. countries? Base All online shoppers (25,228)Reimbursement of payment and availability of PayPal feature
consistently as the most attractive incentives, closely followed by
convenience of payment
Being able to claim a PayPal being offered as a Being able to make a Being able to get money PayPal always displays
refund on postage payment option on payment without putting in back if an item does not any additional fees (e.g.
from PayPal if I have to websites where I shop my card details arrive or is not as tax, customs fees/duties)
return the purchase described for international
purchases before
% Agree checkout
60%
50%
40%
30%
20%
10%
0%
US CA UK IRE FR DE IT ES NL SE BE NO AT RU HU PL CZ GR IL UAE BR MX ARG SA IND CN JP SN HK AU PH
North America Western Europe Eastern Europe Middle Latin Africa Asia Pacific
East America
©2018 PayPal Inc. Q46. Thinking about PayPal as a method of payment for online purchases, which of the following, if any, would be most
Confidential and likely to make you choose to use PayPal instead of other payment methods for making purchases from websites in other 22
proprietary. countries? Base in appendixAppendix
23Global technical note
This technical note (or a reference to it) should be included with all press releases
Weighted base: Total Online X-border Weighted base: Total Online X-border On Behalf of PayPal, Ipsos interviewed a
shoppers shoppers shoppers shoppers
representative quota sample1 of c.1000-2000 (34,052
Western Europe 11000 9199 5279 Eastern Europe 5000 4047 2286 in total) adults (aged 18 or over2) who use an internet
UK 1000 849 320 Russia 1000 802 558 enabled device3 in each of 31 countries (USA, Canada,
Ireland 1000 822 690 Hungary 1000 787 449 UK, Ireland, France, Germany, Italy, Spain,
France 1000 810 325 Poland 1000 827 315 Netherlands, Sweden, Belgium, Norway, Austria,
Russia, Hungary, Poland, Czech Republic, Greece,
Germany 1000 815 257 Czech Republic 1000 798 404
Israel, UAE, Brazil, Mexico, Argentina, South Africa,
Belgium 1000 806 580 Greece 1000 833 560
India, China, Japan, Singapore, Hong Kong, Australia,
Netherlands 1000 836 409 Middle East 2000 1597 1117 Philippines). Interviews were conducted online
Spain 1000 830 502 Israel 1000 786 623 between 13th March and 1st May 2018.
Norway 1000 895 582 UAE 1000 811 494 Data was weighted in all countries to adjust for panel
Italy 1000 842 451 Africa 1000 691 428
bias based on external trend data on incidence of
online shoppers in each country.
Sweden 1000 853 475 South Africa 1000 691 428
Austria 1000 843 688 APAC 7000 5918 2845 1In most countries quotas were applied on age crossed with gender
and region representative of online population. No region quota was
LATAM 3000 2197 1146 India 1000 873 300
applied in SA, Singapore & RU. In UAE no quotas were set but the
Mexico 1000 743 489 China 1000 861 367 survey was mailed out to a nationally representative of offline
sample who were screened for internet usage
Brazil 1000 763 363 Singapore 1000 844 618
Argentina 1000 692 295 Japan 1000 911 56 2 Aged 18-74 in all European countries
North America 2000 1579 762 Hong Kong 1000 838 629 3Desktop computer/Laptop/ notebook computer/Tablet
USA 1000 805 274 Australia 1000 781 473 /Smartphone/Some other type of mobile phone/Electronic organizer
/ PDA with wireless voice and data features/Games console with
Canada 1000 774 488 Philippines 1000 811 403
Internet connectivity (e.g. Wii) 24
TOTAL 31000 25228 13863Market sizing estimate and forecast: methodology
Estimating and forecasting online and mobile sales
Inputs Survey Data Forecast Modelling
To build the forecast we look at We use the survey data to add From these inputs, we model
relationships between key purchase behaviour (penetration category sales growth, changes to
macro-economic indicators. and average spend per head) to the online/mobile population, and
• Total and online population understand the size and growth in online/mobile spend for
development (Source: The World projection of future category those populations to forecast total
Bank). spend. online and mobile spending. We
• GDP per capita development • Category online purchase assume that the current rates of
penetration adoption amongst non-users
(Source: The World Bank). • Average category spend continues and as the level of
• Total and online retail sales • Smartphone penetration adoption reaches the upper limits
(Source: ONS Report). • Tablet penetration we reach saturation.
• Total online spend includes mobile spend. Mobile spend includes spend on both smartphones and tablets.
• Estimations/forecast based on the following meta categories: Groceries, Food, drink & Alcohol; Health &
Beauty; Clothing, Footwear & Accessories; Event tickets; Travel & transportation; Household goods; Leisure,
Hobbies & Outdoors; Baby/Children’s Supplies; Entertainment; and Consumer Electronics.
©2018 PayPal Inc. Confidential and proprietary. 25You can also read
