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Paypal payments for digital goods janette chung fang lin michael suarez
 

Paypal payments for digital goods janette chung fang lin michael suarez

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Selling digital goods is different than selling physical goods—from the business models that need to be supported to how fraud should be managed. In this session, we’ll help you understand which ...

Selling digital goods is different than selling physical goods—from the business models that need to be supported to how fraud should be managed. In this session, we’ll help you understand which PayPal product is most appropriate for your business model, how to integrate with PayPal’s payment products for digital goods, including Zong, and how to best configure PayPal for your risk profile.

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  • Some may look at the % of vertical still in the physical market as a validation of PayPal’s physical goods strategy – I see it as getting in front of a trend that’s inevitable150B in offline paymentsCurrent growth numbers represent 15.5% CAGR
  • Who is your buyer? You can sell globally, so you need a global payment solution.What is your margin? If you have low cost of goods sold, you can take payment methods that have higher fee or you can absorb more loss.Where do you sell? Platforms help you reach buyers but fees are high. You pay lower fee when selling in open web, and HTML5 allows you to create app-like experienceWhen do you deliver? You need to deliver instantly, so you need to manage fraud real time.
  • Over $3 billion in total payment volume in 2010 for digital goodsPayPal’s unique offerings:Frictionless, in-context, two click payments: consumers never leave your game, video, music, e-book, software site Cross payment model support: micropayments, subscriptions, and pay on-demand modelsTrusted brand and worldwide consumer reach to over 100 million active account users with worldwide leading fraud and security expertiseCross platform and device support – web, mobile & device payment support
  • Between PayPal and with the acquisition of Zong - PayPal leads the way in payments with ~55%-60% marketshareof a $1.6B market opportunity in North AmericaPayPal Ideal for international reachZongIdeal if APV is less than $50 Reach buyers without traditional funding mechanismAppropriate if low cost of goods sold
  • https://idolpr.votenow.tv/?unit=dayoftesting
  • https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=developer/e_howto_api_IntroducingExpressCheckoutDG#id085LHM007Y4One-time paymentsLower barrier of entry for casual buyers
  • https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=developer/e_howto_api_ECDGRecurringPaymentsSubscriptionSuitable for engaged buyersMagazinesPROFILESTARTDATE RecurringPaymentsProfileDetails.BillingStartDateThe date when billing for this profile begins.Note: The profile may take up to 24 hours for activation.BILLINGPERIOD ScheduleDetails. PaymentPeriod.BillingPeriodThe unit of measure for the billing cycle. Must be one of:Day Week SemiMonthMonth Year BILLINGFREQUENCY ScheduleDetails. PaymentPeriod.BillingFrequencyNumber of billing periods that make up one billing cycle.Note: The combination of billing frequency and billing period must be less than or equal to one year.Note: If the billing period is SemiMonth., the billing frequency must be 1.AMT ScheduleDetails. PaymentPeriod.AmountAmount to bill for each billing cycle.To set up one or more billing agreements for recurring payments, modify theSetExpressCheckout request as follows:1. Add an L_BILLINGTYPEn field for each billing agreement you want to create; n is a valuein the range of 0 to 9, inclusive. Set the value of each field to RecurringPayments.L_BILLINGTYPE0=RecurringPayments2. Add an L_BILLINGAGREEMENTDESCRIPTIONn field to correspond to eachL_BILLINGTYPEn field you pass; n is a value in the range of 0 to 9, inclusive. Set thevalue of each field to the description of the goods or services associated with that billingagreement, for example:L_BILLINGAGREEMENTDESCRIPTION0=Time Magazine subscription3. If there is no associated purchase, set PAYMENTREQUEST_0_AMT to 0.PAYMENTREQUEST_0_AMT=04. (Optional) Set MAXAMT to the average expected transaction amount.PayPal uses the value you pass to validate the buyer’s payment method for recurringpayments. If you do not specify a value, the default is 25.00.The SetExpressCheckout response provides a token that uniquely identifies the transactionfor subsequent redirects and API calls.[requiredSecurityParameters] &METHOD=CreateRecurringPaymentsProfileTOKEN=EC-13W99099UU817504D &PROFILESTARTDATE:20XX-03-05T03:00:00 &DESC=Movie clips &BILLINGPERIOD=Month &BILLINGFREQUENCY=12 &AMT=1.00 &CURRENCYCODE=USD &EMAIL=payername@bbb.net&L_PAYMENTREQUEST_0_ITEMCATEGORY0=Digital &L_PAYMENTREQUEST_0_NAME0=Kitty Antics &L_PAYMENTREQUEST_0_AMT0=1.00 &L_PAYMENTREQUEST_0_QTY0=1[successResponseFields] &PROFILEID=I-G7ALAX8095JY &PROFILESTATUS=ActiveTRIALBILLINGPERIOD ScheduleDetails.TrialPeriod.BillingPeriodTRIALBILLINGFREQUENCY ScheduleDetails.TrialPeriod.BillingFrequencyTRIALAMT ScheduleDetails.TrialPeriod.AmountTRIALTOTALBILLINGCYCLES ScheduleDetails.TrialPeriod.TotalBillingCycles
  • https://cms.paypal.com/cms_content/US/en_US/files/developer/PP_ExpressCheckout_AdvancedFeaturesGuide.pdfNetflixSubscriptionSuitable for engaged buyersYou must set up a billing agreement using the Express Checkout API before you can use areference transaction.Specify 0 as the amount of the purchase in SetExpressCheckout and callCreateBillingAgreement if you only want to obtain a billing agreement ID for later use.(Do not call DoExpressCheckoutPayment, because no payment is involved.) Otherwise,call DoExpressCheckoutPayment to obtain the billing agreement ID and to initiate anExpress Checkout payment.You must set up a billing agreement using the Express Checkout API before you can use areference transaction.Specify 0 as the amount of the purchase in SetExpressCheckout and callCreateBillingAgreement if you only want to obtain a billing agreement ID for later use.(Do not call DoExpressCheckoutPayment, because no payment is involved.) Otherwise,call DoExpressCheckoutPayment to obtain the billing agreement ID and to initiate anExpress Checkout payment.Initiating a Payment Using a Reference TransactionAfter you establish a billing agreement, you can initiate a payment, which withdraws fundsfrom the buyer’s PayPal account without manual intervention. CallDoReferenceTransaction to use a reference transaction.Call DoReferenceTransaction and include the following information:􀁺 A reference ID that associates the buyer to a billing agreement. Typically, the ID is thebilling agreement ID; however, you can also use the ID associated with a referencetransaction.􀁺 A payment action, such as an authorization, order, or final sale.􀁺 Payment details, including the amount of the payment.Reference TransactionsAbout Cancelling Agreements and Getting the Billing Address72 July 2011 Express Checkout Advanced Features GuidePayPal responds with a reference transaction ID that you can keep for future reference andother information about the transaction.You most likely call DoReferenceTransaction in response to the buyer confirming apurchase on your site. The following diagram shows the DoReferenceTransactionmessage flow for a buyer making a purchase from your site.PayPal
  • https://cms.paypal.com/cms_content/US/en_US/files/developer/PP_ExpressCheckout_IntegrationGuide_DGEnt.pdfHybridAcquire new buyers and increase value of engaged buyersDay Pass and Subscriptions
  • Million dollar questionA: NFC -> mobile walletB: Square -> smartphone to process card paymentsC: Consumer buying digital content and charging them to their phone bill
  • Nov 2010, Zong conducted a mobile consumer survey on our top 5 mobile markets.US, UK, DE, FR, AU
  • Show of hands, if you know your mobile number by heart?Fun, Easy, FastIntuitive, low friction, high conversion
  • Zong hosted page you embed into your web application.
  • Android SDK for downloaded apps to the Android phone.Zong gives you a java library

Paypal payments for digital goods janette chung fang lin michael suarez Paypal payments for digital goods janette chung fang lin michael suarez Presentation Transcript

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  • You are Moving in the Right Direction Annual Sales $200.0 US$ billions $180.0 Mobile - Games, $29.7 Music, Video, $160.0 Software $26.7 $18.7 $140.0 Devices - Books & $23.7 Magazines $120.0 $14.4 $36.5 $20.2 $10.8 $100.0 $32.1 Media - $16.8 $7.9 Newspaper, Music $27.8 $80.0 $13.5 $5.6 & Video $24.6 $32.2 $4.0 $21.3 $26.0 $18.7 $21.0 Software - SaaS $60.0 $18.0 $15.0 and Downloads $11.1 $40.0 $57.6 $63.2 Games - Console $48.6 $52.8 $20.0 $42.3 $44.9 and Non-console $- 2010 2011 2012 2013 2014 2015 Source: PWC Global Media and Entertainment Outlook 2011, Juniper Research 2011 and PayPal analysis. 4
  • Free Content Premium ContentAdvertising
  • One-time Subscription
  • Source: Pew Research Center, Nielsen. Average March, June September 2010.
  • GAMES VIDEO MUSICeBOOKS NEWS/CONTENT SOFTWARE www.paypal.com/digitalgoods
  • Direct Monetization in Social Games NORTH AMERICA Mobile and Offers 20% PayPal 45% Credit Cards 35% 11
  • PayPal for Digital Goods 10/13/2011 18
  • A: Point of Sale purchase B: Payment processedusing your mobile phone. through a smartphone.C: Mobile to Mobile fund D: Payment charged totransfer. your mobile phone bill. PayPal for Digital Goods 10/13/2011 19
  • Source: Zong survey of 500 mobile consumers. November 2010. PayPal for Digital Goods 10/13/2011 20
  • PayPal for Digital Goods 10/13/2011 21
  • PayPal for Digital Goods 10/13/2011 22
  • PayPal for Digital Goods 10/13/2
  • PayPal for Digital Goods 10/13/2011 24
  • • No consumer registration required• No credit card or bank account required• Frictionless• Extensive reach• Appeals to younger demographics• Easy to integrate PayPal for Digital Goods 10/13/2011 25
  • Pre-purchase Purchase Post-purchase • Handle transaction• Locate user • Start Zong call callback• Choose from supported • Handle UI redirect if • Credit consumer price(s) applicable • Acknowledge Zong• Generate dynamic notification parameters PayPal for Digital Goods 10/13/2011 26
  • • Good Complement to traditional payment options• Intuitive user experience• Fun• http://www.zong.com
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