Expand your business online & offline with PayPal's flexible solutions | QuickBooks Connect 2020

[Music] hi everyone i'm david bruce i'm here to talk to you about expanding your business online and offline with flexible solutions from paypal all right let's get into it so this is the agenda i'm going to go through this is the information i'm going to share today um you know firstly i'm going to start talking about what's happening in the world and i don't want to leave with a negative note but this is a real impact happening um to small businesses around the world and so what we're we at paypal have been trying to do is really help and support the small business community and so i'm going to talk about some ways in which uh you as a small business can adapt to the changing market environment you've seen over the course of 2020 related to the uh the covet pandemic first of all we'll talk about uh how how you could potentially move online as a new uh alternative way to sell uh that gives you access to a broader customer base um and then also helps you effectively future proof your business in time to change uh we're also going to talk about the role that mobile has been playing uh within the pandemic and how consumers have adapted uh to to new sorts of environments and the way that that's working in terms of both online commerce but also in-store commerce as well and then lastly we'll talk about how that will work with your existing in-store environment and in your existing in-store payments experiences and so hopefully what you'll take away is some very meaningful and very specific actions you can take to really start thinking about how you diversify your business in ways for quite frankly a new world first of all though i want to talk about paypal and you'll feel like some of this is a little bit of a pitch for paypal and so it's uh certainly not meant to be it's certainly meant to be guidance um using paypal as an example there are other platforms and other other payment services around the world that can be helpful um but we do have a very vested interest in the small business community that's the heart of our business and an area that we we quite frankly have driven our company forward around a purpose for helping support that customer cohort and so our our business is very values driven and so we've been trying to help companies throughout the covet experience and so this is just a quick video to kind of show you some of the things that we've been doing uh throughout the period of 2020 can we make it better [Music] so as you can see you know the key takeaway really is that you're now in a new world um with businesses of all sizes uh are in a sort of new world order you have to be very adaptive to that you have to be nimble and you have to navigate quite frankly some complexity and and so it's not as simple as it was before there's multiple avenues you can you can use as an opportunity but also have some level of um you know requirements against them that can be complicated what we're going to talk about is how you address that continuum from being online through how you use mobile and how you um sync that with your existing store first it is just talk about the way that the world has shifted and and you know we've been a we've been fortuitous to be able to see across the world how the world has changed and and what we believe is that this is not necessarily a short-term change but actually the the environment has shifted in a way that will sustain over time as well in fact what we're hearing is that in particular for commerce what we've seen is an acceleration of a trend to move from offline to online or a combination of both omni-channel and that trend is accelerated over the last six months by about three to five years meaning that there was a trajectory already happening but what's happened is that coveted just accelerated that trajectory in a material way and it's happened both with businesses and so you're seeing tremendous amounts of businesses set up new stores online that weren't there before or also looking at selling inventory into marketplaces which is another type of channel and you could be successful in but we're also seeing consumers adopt online as a as a key method to be able to uh transact by goods and services um and what we expect is that that won't completely um sustain over time but you'll certainly see that this is a permanent shift for a lot of people in terms of how commerce happens and so now is the right time to really think about capitalizing on that but also setting up a kind of safety net for any scenario that happens later that you you will need to immediately adapt to and so for us we're really more relevant now than we've ever been um and and that's really because we have a kind of suite of different services um that can really help all of those different stages from the business life cycle um particularly in online our you know the beginnings of our company were really related to how we enabled um transactions online for us most important thing uh we believe in commerce is the ability to transact if you can't transact you don't have the sale so there's clearly like a immediate relevance for the button itself for paypal but also the other types of payment facilitation that happen and there's been a shift i'll talk about it in a little bit about the way the consumers have used payment methods in different types of environments and then also different types of opportunities in terms of how payment cycles can work bringing money forward to the business and having an entity like paypal basically uh defer the the cost for the consumer and so i'll talk about credit and some other areas that are helpful we've also invested heavily in responding to the way that consumers now need to have contactless experiences in store and online and so our answer to that for the us specifically is qr codes which you're starting to see a lot of and so i'll talk about qr codes and the relevance and how that'll work but we've also seen a huge uplift in the way that people transfer money between themselves and so our own and operated platforms for peer-to-peer transfer like venmo or paypal are also another way that businesses can start leveraging as a sort of new money source pool um and then you know we've sort of retooled our app to make sure that it's easy for businesses to manage those transaction concepts um and then also we still continue to invest in how we help folks within the actual uh store environments and what you'll see is that the the unfortunate nature of the changes we're seeing is that you will likely have to make some pivots what you're doing in store to really capitalize on the online and mobile experiences that are emerging but honestly we can't do any of this without our partners and so um you know commerce is not one company um providing the full range of services that a business would need commerce is a landscape and it's stitched together um in fact my job is to make sure that when a customer wants to use paypal in some form of environment whether that be with um syncing their payment inventory with quickbooks um and and that data sync um or being able to set up a commerce environment so they can track transact online um or even using things like marketing solutions to drive growth the the the infrastructure is there already plugged together and so it's an important comment to make that really this is a community of platforms really helping small businesses end to end and intuit is a hugely important um player within that space to help us drive that connection point for our overall financial management so talk about how you get up and running online that's probably the number one thing that we saw and heard as this pandemic started is i my business is shut down i still need to be able to sell people are buying i need to go online for us we defer back to our partner ecosystem to be able to set up an actual store on a website or start selling on a marketplace and so some of the logos i just shared whether it be a godaddy or a wix or some kind of platform that you can just immediately get up and running online that's our front end to that customer experience but then the transaction flows are incredibly important to make sure that not only are they relevant for the consumer and and the way that the item is being sold but also that that can then link back with ease and simplicity to what you're doing in the store and also what you're doing from a back office financial management perspective um our biggest asset the company is the wallet the you know the first wallet that was created um and really it's been pervasive uh for for almost two decades now um in terms of the way to pay um and that's because there's significant value associated with the ease and simplicity and security of of how we enable payments and for a consumer to buy um it's also relevant in a lot of different markets and so the great thing about having an online experience is you widen your scope of potential buyers to basically the world um you know anyone in anywhere can basically transact online um and so paypal enables that and it brings a new customer base to you and then you know i think the last thing we would say is that there's a trust component um related with paypal um as folks are entering an online experience it there's a lot of you know there's a lot of complexity of that and quite frankly it can be daunting and so working with a partner that you really kind of trust and has that level of stability is certainly very important and i think probably the last point i will make is that there's this very um interesting trend happening in the types of payment methods that consumers want to use and it's and they're very different um certainly geographically um we see usage being different uh certainly by country but also even by state um and then from a uh geographical uh sorry a sociographical standpoint um if you're a certain type of consumer or from a certain type of um financial background then you may need certain types of payment methods i.e some form of credit to be able to fund something that you need now but pay for later or in fact our venmo service has been very relevant for a certain cohort of customers which are relevant for you know more millennial based buyers and so you have to think through uh the types of products you're selling the type of customers you have and then you have to reflect that back into the types of payment methods that you present to them because they are all uh seemingly do the same thing but very nuanced in a very material way when you get down to the the usage um so you know a couple of things that you can do as well which really kind of help move the um the financial burden off of the business and on to the partner onto the payments partner and so a lot of that is really capturing the sale up front getting the cash up front but deferring for the consumer in some way and so there's a couple of ways to do that but our answer to that really is um by now pay later um we have a history of offering consumer credit um and so we've been expanding that suite around the world but in particular in the united states uh just over the last few months and what and what that really does is it means that um if a consumer needs an item now they can buy either using a line of credit um or from paypal which is underwritten through what we know about them um or they can pay in over an installment period in four installments and so that they can defer some of that uh cost to down the line what that means though is that the business gets the money immediately and so it's almost like a sale the other the other kind of concept that's not listed here that sort of does something similar to that is gift cards and so if you're a small business and you're trying to get cash now um selling gift cards gives you that cash now for a later um a later redemption against stock and so there's a couple of different levels for that but trying to bring the money earlier into the ecosystem is really the goal we're trying to help um small businesses be successful with also there's a benefit in terms of how you will perform um as an online experience and so what we've seen is that when you introduce a kind of upfront credit message what happens is not only do you increase the overall sales for for the for the um web experience because folks don't drop off because they didn't think they could actually afford it when they really can over time um but it also offers um more guidance and more thought in terms of the way it's promoted and then we are also not offering or not charging any more fees for that level of service so it acts as a sort of same straight line um payment concept but um quite frankly it's just at the same price as you would for any other transactions and so we're seeing like almost half our merchants try to adopt some form of credit um from a consumer perspective right now this is just a little bit more about the product and service just to give you a little flavor of how that works as you know many shoppers like to browse before they buy it's a fluid process they'll place items in the cart remove items add other items before deciding whether to make the purchase or abandon their cart one way to help close more sales is with dynamic messaging a unique feature from paypal that lets customers know about financing offers early in their shopping experience dynamic messaging is included when you offer paypal pay later options on your site here's how dynamic messaging works paypal automatically displays the most relevant pay later option to customers based on the products they're browsing for smaller purchases shoppers will see pay in four messaging for larger purchases shoppers will see messaging about paypal credit special financing why is this important businesses with payover time messaging on their site saw a 56 increase in overall paypal average order value paypal pay later with dynamic messaging is great for customers because it provides increased purchasing power it's great for businesses because it helps grow sales average order value and conversions with no additional costs it takes just a simple integration to add dynamic messaging to your site get started today another great area that can be a stabilizing factor from a financial management perspective uh is recurring payments and subscriptions um so if you think about it if you if you have line of sight into a customer cohort that has a commit commitment to an ongoing payment stream that gives you that level of comfort and stability in your financial reporting to know that that is a continuation some people of course drop off but what we find is that a lot of folks that sign up for some form of uh recurring payment subscription after the first month they really kind of stick with it and it and it continues and persists and so this is something that we've invested a lot in technically uh to help small businesses be able to set up uh recurring payment plans um be able to create agreements between the consumer and also the merchant so that you're able to sort of um you have a handshake that means that we can then facilitate the payment uh for the consumer every month and so it's an automatic process um that once established um can be ongoing um but this is a really great way um of thinking about all sorts of different um subscription types products and so it just gives you kind of some examples of things that we're seeing work really well uh are things like um a monthly subscription to accessories that the razer in industry for example uh has has done this incredibly well by offering kind of ongoing um subscriptions to products uh quite frankly amazon does a really good job of this as well um where they uh have a kind of ongoing you know get this every month type model and then we're seeing it in almost every vertical spawning goods even for fish and tackle um or um in services like um massage all sorts of um different verticals so it doesn't really it's not limited to one type of category this can be a concept across pretty much any vertical that you're looking at now let's switch to mobile and talk about how mobile very specifically has uh impacted the contactless experiences um that we now expect consumers to want to adopt our answer to this is the qr code and so qr code is a technology it's been a lot around for a long time uh it's simply take your camera on your phone scan it it opens up a web page or an application and it takes you to that experience and so really it's just a way to uh kind of contactlessly connect to an uh another uh another entity whether that be a consumer or a business um and so we're seeing significant adoption for this type of activity particularly in the united states uh anyone going to restaurants etc today has likely seen it and particularly in stores and then what we we've been able to do is create a model where um you know you can use this in your pos experience and it sort of acts like a cash transaction but it runs through the paypal experience and so you you know if you make a sale in store uh the the user can pay via qr code and transact using paypal and then that those funds go through the paypal experience and you can exit them or reuse them in any way you you you would like so we're seeing a lot of this happen with smaller business as well like pop-ups this is an example of how it's used um and so uh hopefully you kind of draw a real world example from this video [Music] [Applause] [Music] and then the last thing about mobile is really just the management and so management of your business generally is very challenging um there's all sorts of different ways you can do that we've tried our you know from a paypal perspective to really embed all of the touch points you have with paypal into one business application so that you can see uh all of the transactions that are happening you can see uh any of the customer history if you're shipping items that's uh listed in there as well so you kind of manage your payment infrastructure through that experience you can also generate your qr codes make other changes this experience also syncs back in with others some of the parts i mentioned in particular certainly with with quickbooks and so you can either use this data within the application or use another application with that same data in it but what we're trying to do is help expose as much as possible ways in which you can manage your business um using the data from the paypal experiences and then lastly let's talk about offline solutions so this there's a you know there's a reality to the fact that if you're gonna move online um you know the chances are that you're gonna use one of the logos that we showed at the beginning this uh presentation and what that means is that you're gonna be on a new type of platform you you're gonna be on a system that is probably sas based that is is new and quietly some of those won't work with very legacy uh older pos systems and so you you are likely to be in a position where you're going to need to reinvest into how your pos works and and so you know paypal has pos offerings but there are a multitude of players within the space and what i would say is that you know each of them is slightly different depending on the different needs you have as a customer so it's worth certainly researching them but the main thing is that you want to make sure that your pos system actually syncs with the online system that is the hardest part of the omnichannel experience is to make sure you're not basically running two businesses and so that you know the connection points that a lot of those commerce platforms that we showed up front um do a really good job of is they help you connect offline and online in terms of the way the orders are managed and worked and then quickbooks there's also does a wonderful job of being able to sync both of those experiences into one financial management experience and certainly for accountants to be able to be able to see and distinguish between online sales and in-store sales quickbooks has made that incredibly easy um in partnership with those those other commerce platforms and with the transaction data occurring and so what that means is that then you're in a situation where if you sell an item in store it's deprecated um in your core inventory so you can't then resell that online by mistake and have a bad buyer experience it also means that as a transactions come through you can distinguish between the channels sold and so let's say you're selling um it in store in the state of california you have certain taxes for that certain items are taxable certain they're not and then if you're selling online and the buyers in a different state there may be a different tax model um if you happen to be then redistributing your inventory and selling that onto a marketplace or some social platform maybe different taxes for that and so all of these systems working together um create a an opportunity but they're very um you know complicated if you were to try and bring them together yourselves and so there's certain certain ways you can do that through the platforms themselves but i do think that into it's a great model for us to be able to think look at for that back office and financial management servicing um so you know the the um the paypal here pos certainly is is one that's very relevant we have um all sorts of uh uh nfc type models apple pay things like that where folks are going to want to you know not touch cash and then also of course take credit cards and paypal one other area that we've been investing in is really in the offline world to try and make sure that we get cash to customers to businesses business customers faster and so the great thing about paypal is the in instant nature of the way you get your money um and so you know as soon as you do a sale the money's there it's there in your wallet you don't have to wait for a week for it to get swept to a bank or on a daily basis and get it the next day it's literally instant um and so you know not always do you need the money instantly but when you do uh we offer a debit card to pull that money out and so acts just as a normal debit card word um with with the um with the balance in your wallet being the source of funds um it's similar to a bank account and basically you can pull the funds out of that if you need them on an instantaneous basis um versus waiting uh for the funds to be settled the next day into the bank account which can be at times challenging and so that's really the kind of the media the meat of the uh presentation i'll just talk through some of the the kind of key takeaways uh you know for me i think it's certainly an obvious trend that customers are really turning into online shopping more than ever um and certainly the economy reopening will kind of diminish that a little bit as folks go back into in-store uh but behavior has has definitely changed for good in some way and so you you're going to need to now think as a small business and if you're an accountant advising a small business about how you capitalize on that and how you make sure that you stay up to date and relevant within this new world of commerce um and then you know being able to be flexible with going to your buyer versus having them come to you um is going to be increasingly important um and and that's really a sort of change from the physical store location where those had to you know you had to attend um in person and so now you need to think about ways to reach new customer cohorts that you hadn't done before and so obviously going online as part of that finding new ways for them to pay bringing new funds into the ecosystem through new types of payment marks is super important and then also thinking about new distribution models uh through services like uh social media and other marketplaces as well is pretty key um and and you know like i said this is sort of a paypal pitch if you will um but uh we offer a range of those services from a payment facilitation standpoint to help businesses and from a lending standpoint uh to help businesses and their customers uh adapt to the dynamically changing market that for us is the most important thing for our company we're a very value driven organization uh you know we're trying to democratize financial services to make uh payments of financial services available for everyone in particular those that need it the most those that are either underserved from a consumer perspective or in smaller businesses that need some form of injection to grow that need help with financial management over time and need help basically getting up and online into new channels very quickly and so that's really the the focus for our company has been for this year and certainly will be um going into next year that's it for my presentation thank you all so much for watching you

2020-12-21 16:06

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