Jenny Cheng, PayPal | Adobe Imagine 2019

>>Narrator: Live from
Las Vegas, it’s theCUBE. Covering Magento Imagine 2019, brought to you by Adobe.>>Welcome back to theCUBE,
live from Las Vegas. Lisa Martin with Jeff Rick. We are coming to you
from Magento Imagine 2019 with about 3500 or so folks here. Big community, big open sort of spirit. We’re very pleased to welcome,
from the keynote stage, Jenny Cheng, VP at PayPal. Jenny, welcome to the Cube!>>Thank you, thanks for having me, Lisa.>>So, really enjoyed
your keynote this morning. We’ll get into a lot of the specifics, but just looking at Magento, Adobe, this evolution of e-commerce that’s really driven by consumers. We want to have everything
right on our phone, as easily as possible, and
we want it lightning fast. Talk to us about, from what you’ve seen, this evolution of e-commerce
and where we are today.>>Yeah, it’s been a fascinating
journey to watch us move from point-of-sale, move
from brick and mortar, to online and engaged. And I think as part of that, you know, you think about the
amount of time you spend on your mobile phone. It’s not surprising that most
sites, 50% of the visitors on that site are on their mobile devices. And they’re staying longer. Maybe you’re killing time, right? Waiting for your husband
to finish something, or your child to come out of class, and so we naturally tend to
get on our mobile phones, and we look for things to do. So that engagement on the mobile phone becomes absolutely critical. And what’s been fascinating,
as part of the conference, we’ve been sharing some early results about mobile optimization. And what we’re finding is,
even though engagement is going up from a mobile phone,
the revenue is not there.>>Lisa: Big gap.>>Yeah, there’s a big, big gap. And you look at that, and you think, well, hmm, I need to figure
out how to actually convert some of these people who
are coming to my website. So we’ve been partnering with a lot of the SI community here, really interested in trying
to understand best practices. And it’s been a fun process
for almost the last year. Things that you would
think would help conversion don’t necessarily help, and then the very interestingly enough, other things that you may have said, well, that seems unnecessary, or busy on my mobile phone, are actually improving conversion. So we’ve been really, just,
sharing our early results, and really encouraging
everyone to participate. It’s free. And we want to do is really
come up with best practices. And really help everyone, essentially, convert more and get more revenue.>>There’s two things that
strike me as you say that. One is just the behavior
of a mobile phone. And interaction is so different, as you said.
>>Yeah.>>It’s often when you’re waiting.>>Yeah.
>>You’re waiting in the grocery store line, you’re waiting to pick up
your kids, you’re waiting. So it is a much more, kind of, frequent fast in-and-out.
>>Yes. Which, which we keep hearing, right? You need to connect the people
over time, in multiple ways. But the other thing, when
you say that conversion is actually not as high as you’d expect, but at the same time, we’re hearing now that that content is so important. And having things that
aren’t directly commerce, to drive your engagement with that client, in the way of content, and
forms, and other things. I wonder if maybe that’s
why the conversion is there. You’re getting them there, which is great. They’re hanging out. Laundra, which I’m sure
is a terrific metric. So maybe they’re not converting
because they’re engaging with that other content, or
more engaging with the brand. Well, do you see?>>Well, you know, it’s a
combination of a couple things. And one of them, to your
point, is, you know, for better or worse,
you’re easily interrupted when you’re on your mobile phone, too.>>Jeff: That’s true.>>So when we have you, how
can we quickly get you past that point of checkout, right? And I think part of that is,
as you know, if you’re like me, I will fat-finger, you know, and have a difficult time
typing on my mobile device. So, one of the things we talk a lot about is removing that friction. So, how do you make it really easy, right? So, if you’re able to
store your credentials, if you’re able to make it
simple to check out, right, that’s ultimately the goal for
a lot of our merchants here. Which is, when we’ve got you, we’ve got to capitalize
on your attention, right? At that moment in time. And make it super easy for you to convert. One of the things that’s been interesting about the optimized kind
of mobile optimization results we’ve seen, is
that what we’re finding is that a lot of people,
what they’re looking for at that point of
engagement is coupon codes. And you’ll get distracted. You’ll think, well, I’m gonna buy that, but maybe I need to go
look for a coupon code.>>Get back to my email,
maybe they sent it.>>Yeah, and so, you know,
there are a lot of interesting ideas that we’ve having
as a community to share. How can we do that? How can we make sure, maybe,
you get your coupon code, but you don’t click off and disappear, and maybe forget to come back? I’m notorious for doing that. I’m also notorious for putting something in my shopping cart, getting
distracted, and walking away. And so, I think a lot of it is
looking at these various ways to make sure you are back and engaged. And I think this is a big part of where the journey will go with
e-commerce, going forward. I think we’ll be looking at, now that we’ve got your eyeballs, now that we’ve got your time, how do we convince you, this is going from a browse
mode to a actual shop mode?>>Right, creating more shoppable moments, as Magento’s marketing material says. But also, to your point about simplicity, probably for even any generation
is, it’s basic marketing: don’t deliver a great piece of content, and have a hyperlink
in the first sentence. That’s going to take your
audience somewhere else.>>Jenny: Right.>>Keep me in the experience.
>>Yeah.>>Use enough of my, what do you say? Enough of the data to where it goes from creepy to–>>To magic, right?>>To helpful.
>>Right, right, right. If it works, it should be magic, right? But if I already bought the tent, now I need a sleeping bag. Don’t keep sending me tent ads, right?>>Yeah.>>Right, but that
simplicity, sort of in-app, in-experience consistency is really key. Otherwise, to your point, and your point, we’re doing this often while
we’re doing something else. So there’s a lot of multitasking going on. Make it easier, but also, use the data with these systems that you’re integrating with to know exactly, I bought
a tent, I don’t need one, but I might need these other things.>>Right, right, and I think
that’s really where things are moving with artificial
intelligence and machine learning. We’re trying to understand
you as a shopper, and be able to predict, right, what else?>>Jeff: Right, right.>>You know, so you’ve gone from the tent. Now maybe it’s time to get
a little, you know, camper. Maybe that’s your next step up.>>Jeff: Right.>>Maybe you move into an RV. Who knows, right? So, I think there are evolutions
to that buying experience.>>But the other evolution, which PayPal was at the very beginning, was the alternative
payment methods, right?>>Yes.>>Not just your basic
credit card, or cash. And I don’t know if a lot of people know that you guys have Venmo, which, if you have kids.
>>Yes.>>If you don’t have young kids, you probably don’t know what Venmo is. But I wonder if you’ve
got a take on, you know, as these alternative
methods to buy come up, and then we’re also surrounded with alternative financing
types of platforms, where they’re not using
traditional FICO scores. They’re not using kind of a traditional apply-get-approved process. It’s really dynamic on the
financing side as well.>>Yeah, and to your point. So, PayPal, one of our best
kept secrets, I like to say, is that we have both Braintree and Venmo as part of our overall services. And then, even broader than that, what we’ve done is packaged up the ability to really think about
alternative payment methods based on what region you’re on, as well. Because, depending where
you are outside the U.S., you might actually use a completely different payment method. And I think for us, in the
U.S., we’re not as familiar with some of these other payment options. And what it does, is it
really allows for a lot more cross-border trade as
well for our merchants. As in, you look an offer, kind of, what is most relevant to, again, get you to go from browse mode to actually check out mode.>>Jeff: Right.>>And to get to that
actual conversion piece. So that’s one of them. And then, I would say, just generally, on the credit comment, we actually credit at PayPal as well. And what we’re always looking
at is, what are other ways we can help people finance, and really, kind of work through the
evolution of payments? I think some of the statistics
that you’ve probably heard related to savings, and the U.S. especially, is a bit staggering. We have, on average, the
majority of people have less than $400 in savings. So, one paycheck away. And, the reality is, it’s tough. It’s really, really tough. And so, I think, to be able
to have a source of credit where you could bridge
that gap and to your point not have to go though the entire kind of credit process, necessarily. I think having those
options are always good.>>Talk to us about what you
guys are doing with Walmart. You showed that
>>Yeah. in your keynote this morning, but there was a very
interesting from a collaboration and partnership standpoint.>>I mean, I’m very passionate
about this, because PayPal, overall, has a mission of
democratizing financial services. And I think we’re very
fortunate, being in high tech, and being in the situation we are, where we’re able to not be intimidated, necessarily, by all this new technology, and all they do for options out there. So the partnership with Walmart
was at the end of last year. And it really was looking at,
you know, how do we get people access to their PayPal
dollars easier, faster? And we continuously see this
divide between the digital and the physical realms
of accessing money. And so, we’ve opened up an option, partnering with Walmart, for the U.S. which is, it’s really easy. In your PayPal app, you
bring up a unique barcode, you can go into a Walmart store, and essentially, like a debit card, it debits it out of your PayPal account, and the Walmart cashier
hands you the cash. Which is super convenient,
again, and an easy way to get to your money, if you
need something immediately. So, I’m really excited and proud of that.>>So, you said, you
launched that last year.>>Yeah.>>Talk to us about some of
the data, the market data, that demonstrated that this was a good direction for PayPal to go in. To be able to open up this as the ability to give people more
access to their dollars, whether they’re online
or in physical locations.>>Yeah, I think it’s one
of those overall statistics we look at a lot, because
we’re really looking at continuously bridging
our open, two-sided network. We’ve got this great merchant
base, 21 million merchants, and then we’re on track to be
almost 300 million consumers. And when you look at the consumer side, then you think about Venmo,
you think about PayPal, we really started a
peer-to-peer app, right? I owe you 20 bucks for dinner last night; let me PayPal you that money. Let me Venmo you that money. And at some point, the question becomes, well then, how do I
easily access my money? How do I make sure that I
have access to it again, not just digitally, but physically? And I think when we’re
looking at those realms, we’re looking at more options
to give people that ability, that if they need to get
to that cash quickly, they can get to it quickly. They don’t need to worry
about getting to a bank. I think the reality is, it’s easier to get to a lot of Walmart stores in the U.S., than it is, necessarily,
to every bank out there. And so, I think we’re
constantly looking at, where can partnerships really add value to our overall customer base? And, as I mentioned in
this morning’s keynote, I love when partners
really can work together, and it becomes truly, you know, a little bit of a trite saying, but a one plus one is
greater than two scenario. And I think when you can do that, it adds so much value to
both sides of the equation. And that’s what’s really exciting for me. That’s why I love partners.>>But also, giving cut consumers choice, where I think this
morning, in your keynote, you showed this cute picture, daughter-approved, your girls
10 years ago and then today. And, you know, 10 years ago, you couldn’t just go on an app and order groceries.>>No.>>You were saying, when,
you know, your mom would have to go at multiple stores
to get what you want, and now we can get it so easily.>>Oh, yeah.>>But, there’s also this
sort of interesting dynamic where people still want to
have that physical interaction, depending on the type
of product or service. So, being able to give
customers that choice of being able to transact it through the
app or online, or being able to access their money, for
example, through a Walmart. I mean, oftentimes, if I’m
running out and running errands, and I don’t have my wallet,
and I know, all right, I know the stores I can use certain payment methods from my phone, and that’s great, because
I have that choice. And that’s something that
seems like PayPal is working to facilitate, is meeting
consumer demand where it is.>>Yeah, and I think that’s
the reality of where we live right now, which is, our customers want us there at that point of engagement. So, don’t make me necessarily come to you. I would like you to come to me. And, you know, for better or
worse, it is a little bit of the overall experience
that they’re looking for. Which is, to say, I’ve got my
favorite places to either shop or engage on my mobile device,
so make it easy for me. And I think that’s ultimately what we’re kind of looking for. I know, as a working
parent, I’m always looking for convenience, and I’ve
said I’m going to write a book on convenient parenting, because
I think it’s worked for me.>>That would probably
be a bestseller, I think. Parents of humans, or canines. I think we could all use
that convenience factor.>>I’ve got a furry
child as well, so, yes.>>Well, I’m curious what we’re
going to see in the next year or two, with that conversion
of actually enabling an organization to not just
have a great mobile experience, whether it’s with, like,
progressive web apps that they were talking about this morning. But, it’s one thing to have
a great mobile experience. It’s a whole other thing
to convert that to revenue. So, be curious to see what partnerships with PayPal, for example, with Venmo, how merchants of any
size are actually able to start increasing conversion
from visitor to revenue.>>Yeah, and I mentioned it,
as part of what we’re doing, with what we’re calling
Smart Payment Buttons, and I think that Smart
Payment Button Concept is really, again, focused
on giving you options to check out with
whatever’s easier for you. But also, looking to
say, let’s make it easy. So, how do you do that without having to type everything again? Because, if you’re an avid
online shopper like I’m at, it becomes tiresome to feel like you have to sign up at every website, or you have to enter all your
shipping information again, your payment information. And so, I think it’s really looking at, how do we give you that
digital wallet access, so that you have the
ability to make it easy?>>Yes.>>And I think that’s ultimately what we’re kind of all looking for is, how do you make it convenient and easy for me to do what I want to
do and do what I have to do?>>Spend more of my money! Well, Jenny, thank you
so much for joining Jeff and me on theCUBE, and
talking about what you guys are doing at PayPal, with your partners, with Magento, et cetera. It’s very interesting, and we look forward to seeing great things to come. And that book, as well,
on convenient parenting.>>Yes, watch out for it.>>I’d like an advance copy.
>>Thank you.>>Thank you.
>>Thank you.>>Our pleasure.
>>Okay.>>For Jeff Rick, I’m Lisa Martin, live, theCUBE is live at Magento
Imagine 2019, from Las Vegas. Thanks for watching. (upbeat techno music)

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