Online payment service reduces drop-out rates for buyers
Tags: e-commerce online payment PayPal
By SMBWorld Asia Editors | Mar 18, 2011
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As part of its business strategy for 2011, PayPal is providing an enhanced "Website Payment Pro Hosted Solution" service to online shopping site owners in Hong Kong, primarily targeting small and medium-sized merchants. This service allows SME merchants to customize the PayPal payment page to the same design as their e-commerce site, thereby simplifying the payment process and reducing drop-out rates for buyers. It also enables SME merchants to process online payments via PayPal for offline orders taken by phone or fax, thereby expanding the merchant's payment options and providing new sales opportunities to expand their business.
The majority of PayPal's total payment volume (TPV) in Hong Kong last year came from cross-border trade as 94 million active PayPal users in 190 markets worldwide buy products from thousands of Hong Kong-based PayPal merchants.
Ranked by TPV in 2010, Hong Kong is the third-largest market for PayPal in the Asia Pacific region, only behind mainland China and Australia. While cross-border trade remains the primary business for PayPal in Hong Kong, domestic transactions grew 3 times faster than cross-border transactions in 2010 and mobile payments increased 7 times in the past year. Top PayPal merchants in Hong Kong include DealExtreme (cross-border wholesale), StrawberryNET (cross-border B2C) and BeeCrazy (domestic group-buying), reflecting the strong growth in these specific areas.
During the past year, PayPal experienced double-digit growth in Hong Kong, driven by a highly-wired society with 102.9% broadband and 189% mobile penetration rates1. PayPal's business strategy will focus on developing the local online shopping market, encouraging Hong Kong consumers' use of online and mobile payments, and providing local merchants with more relevant products and services to grow their business online. The strategy will create additional economic opportunities for PayPal sellers/buyers, allowing them to benefit from mobile, local, digital and social commerce trends that are converging the offline and online shopping experience. For example, the growing popularity of social networking and group buying in Hong Kong encourages more consumers to purchase online from websites like BeeCrazy to get great discounts on a wide variety of products.
"Hong Kong is one of the largest markets for PayPal in Asia Pacific and we will continue to work with local merchants to explore the significant business growth opportunities through cross-border e-commerce," said Kerry Wong, General Manager, PayPal Hong Kong and Taiwan. "We're also seeing the rise of the HK consumer driving the local online shopping market as they can find better deals on a broader range of products than they can find in the retail stores. Finally, with millions of dollars of transactions in mobile shopping and social commerce through PayPal in Hong Kong last year, we expect to see explosive growth in these two areas of the domestic e-commerce market in 2011 as local consumers embrace a faster, more convenient way to pay in as little as two clicks on their mobile devices and for time-sensitive online purchases."
PayPal will focus on four key verticals in the coming year – travel, charity, digital goods, and consumer electronics. Well-known domestic merchants such as Priceline, Tung Wah Group of Hospitals, Sa Sa, Pacific Coffee and YesAsia.com have already partnered with PayPal, and more customers will be added to the lineup in the year ahead.
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