Monetizing your ApplicationswithPayPal X Payments Platform<br />Praveen Alavilli<br />Developer Evangelist<br />PayPal X D...
Agenda<br />Monetization Models<br />A quick overview of Payments<br />PayPal X Payments Platform<br />Adaptive Payments<b...
Monetization<br /><ul><li>to utilize (something of value) as a source of profit (Merriam-Webster)
convert into or express in the form of currency (Oxford)</li></li></ul><li>Monetization Models<br /><ul><li>Advertising
Subscriptions
Pay as you use
Free to use, pay to Services
Freemium
eCommerce (Virtual Goods)</li></li></ul><li>Payments, Payments, Payments<br />
What are Payments anyway ?<br />exchange of value from one party to another<br />As a developer, the sender and receiver m...
Payment Methods<br />Travelers checks<br />Bill payments<br />Check or draft<br />ACH payment<br />Cards, cards, cards<br ...
different technology to interface</li></ul>As a developer, you select the forms of payments that best fit your application...
Credit Cards<br />usage of the card is authorized by the issuer in real time<br />PaymentSystem<br />Acquirer<br />Issuer<...
How the Money moves<br />authorizations are captured immediately and settled in batch<br />PaymentSystem<br />Acquirer<br ...
Chargebacks<br />Consumers have the right to chargeback transactions.<br />PaymentSystem<br />Acquirer<br />Issuer<br />Co...
Chargebacks<br />Consumers have the right to chargeback transactions.<br />The funds are withdrawn from the merchant’s acc...
Debit Cards<br />PaymentSystem<br />Acquirer<br />Issuer<br />Consumer<br />Merchant<br />
Debit Card differences<br />PaymentSystem<br />With debit cards, processed as a debit card, the authorization transaction ...
Bank Accounts & ACH<br />PaymentSystem<br />ODFI<br />RDFI<br />Consumer<br />Merchant<br />
PaymentSystem<br />With Automated Clearing House (ACH), there is no authorization transaction.<br />Money movement is batc...
Do I really need to worry about these ?<br />
PayPal X Payments Platform<br />Pay Anyone and Receive from Anyone !<br />Provides APIs to:<br /><ul><li> Facilitate Payments
 Manage Accounts 
 Information and Reporting</li></li></ul><li>Enabling Different kinds of Payments<br />Simple/Parallel/Chained Payments<br...
While taking care of<br />Risk and Fraud Management<br />Security<br />Compliance<br />Settlements<br />Refunds/Charge bac...
Adaptive Payments API<br />USE CASES<br /><ul><li>Send money
Split payments
Bill payments
Payroll payments
B2B payments
Remittances
Marketplace payments
Virtual currencies
Points and miles
Mass payments
Invoice payments
Recurring payments
Scheduled payments
Money transfers
Mobile/device payments
Government travel
Future payment scenarios…</li></ul>A money movement service that is configurable or "Adaptive" to allow innumerable use ca...
Not limited to web eCommerce payments</li></ul>Advanced feature:  Modular payment approval<br /><ul><li>Built for web, mob...
Pre-approval allows for approval off PayPal.com</li></ul>Advanced feature:  Pre-approved payments<br /><ul><li>Pre-approva...
Configurable personal identification number (PIN) support</li></ul>Advanced feature:  Parallel and chained payments<br /><...
Facilitates multiple use cases: marketplace payments, service fees, multi-merchant checkout, and so on</li></li></ul><li>W...
Implicit send money
Pre-approved payments (with PIN)
Parallel split payments
Chained split payments</li></li></ul><li>THE ACTORS<br />PayPal<br />The Sender<br />A person or business whose PayPal acc...
SEND MONEY<br />Basic building block allows merchants to transfer money from one entity to another<br />
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Monetizing your Applications with PayPal X Payments Platform

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  • building and running an app is cheap buta successful and profitable company needsGood Monetization Strategyunfortunately most of the monetization techniques that people talk about rely heavily on advertisingAffiliate programsBanner adsBlog advertisingContextual adsInterstitial adsIn-text contextual adsCPA/CPC/CPMPaid Blog PostsLead GenerationRSS adsDataSurveys/Polls
  • A subscriptions model is where you charge your customers a flat membership fee (often charged weekly, monthly, yearly, or for lifetime)  to use your application, services, or content.   A pay as you use model is where you charge your customers based on the usage of your application - time, content, resources used, etc. without a fixed flat fee. Amazon Web Services (AWS) is a good and very successful example of Pay only for what you use. A free to use, pay to Services model is where you provide your application for free but charge your customers for services like customization, training, and other value added services. A good example are the companies that provide value added services for the Open Source software (ex. Linux Operating System, Drupal, MySQL, Java, etc.).   A freemiummodel is where you give away a basic version of your application for free and charge your customers for an enhanced version of your application that provides more extended feature set or content. There are several good examples of using the freemium model in the industry. Flickr, Skype, Newsgator, Trillian, Google App Engine, etc.. And last but not least the traditional eCommerce model which is usually about selling of products (digital/physical) online through your applications. Obviously we are not talking about selling products at the scale of big retailers (like Amazon &amp; Walmart) out there, but most of the applications could provide ways for it’s customers to buy products (digital or physical) that are related to the application or content or services it is offering. A good example is a social gaming application that could provide merchandise like T-Shirts, Coffee mugs, Photo frames, etc.. with it’s brand name on it. As your application grows it’s audience base and, as it’s brand becomes more known among customers – you can generate revenue based on your brand in this way too. in most cases the monetization model really depends on what your application is providing. Also in some cases it is very important (as your monetization strategy gets more closely bound to the functionality – for example as in the pay as you use model where you would want to keep track of everything the customer is doing) to start thinking about the way you are going to monetize in the future during your application design and implementation phase itself. Otherwise you might be forced to redesign and/or re-implement your application when the times comes to turn the monetization switch on. And when you add different platforms, and devices on which  your application is being offered, it would obviously turn into a very costly affair.
  • Another important aspect of monetization, as you might guess, is the payments platform itself. There are several online payments platforms and solutions available out there in the industry and it becomes vital to choose one that not only provides the payments functionality in the way that you would want but also is economical in terms of the transaction and monthly fees.  
  • Not really – fortunately there are payment platforms out there that hide all the complexities for developers like you and me. PayPal X Payments Platform is one such platform that empowers developers to successfully monetize their applications in many different ways.Consumers, businesses, merchants, sellers, buyers, etc….
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  • Monetizing your Applications with PayPal X Payments Platform

    1. 1. Monetizing your ApplicationswithPayPal X Payments Platform<br />Praveen Alavilli<br />Developer Evangelist<br />PayPal X Developer Network<br />@ppalavilli<br />
    2. 2. Agenda<br />Monetization Models<br />A quick overview of Payments<br />PayPal X Payments Platform<br />Adaptive Payments<br />Development Process<br />
    3. 3. Monetization<br /><ul><li>to utilize (something of value) as a source of profit (Merriam-Webster)
    4. 4. convert into or express in the form of currency (Oxford)</li></li></ul><li>Monetization Models<br /><ul><li>Advertising
    5. 5. Subscriptions
    6. 6. Pay as you use
    7. 7. Free to use, pay to Services
    8. 8. Freemium
    9. 9. eCommerce (Virtual Goods)</li></li></ul><li>Payments, Payments, Payments<br />
    10. 10. What are Payments anyway ?<br />exchange of value from one party to another<br />As a developer, the sender and receiver may have many different names, depending on their role and objective.<br />
    11. 11. Payment Methods<br />Travelers checks<br />Bill payments<br />Check or draft<br />ACH payment<br />Cards, cards, cards<br />Net-based payments<br />Many others<br /><ul><li>each payment method has unique features and attributes
    12. 12. different technology to interface</li></ul>As a developer, you select the forms of payments that best fit your application and target the consumer experience.<br />
    13. 13. Credit Cards<br />usage of the card is authorized by the issuer in real time<br />PaymentSystem<br />Acquirer<br />Issuer<br />Consumer<br />Merchant<br />
    14. 14. How the Money moves<br />authorizations are captured immediately and settled in batch<br />PaymentSystem<br />Acquirer<br />Issuer<br />Consumer<br />Merchant<br />
    15. 15. Chargebacks<br />Consumers have the right to chargeback transactions.<br />PaymentSystem<br />Acquirer<br />Issuer<br />Consumer<br />Merchant<br />
    16. 16. Chargebacks<br />Consumers have the right to chargeback transactions.<br />The funds are withdrawn from the merchant’s account and credited to the consumer’s account.<br />PaymentSystem<br />Acquirer<br />Issuer<br />Consumer<br />Merchant<br />
    17. 17. Debit Cards<br />PaymentSystem<br />Acquirer<br />Issuer<br />Consumer<br />Merchant<br />
    18. 18. Debit Card differences<br />PaymentSystem<br />With debit cards, processed as a debit card, the authorization transaction and the settlement (capture) transaction are the same.<br />Money movement is in real time.<br />Acquirer<br />Issuer<br />Consumer<br />Merchant<br />
    19. 19. Bank Accounts & ACH<br />PaymentSystem<br />ODFI<br />RDFI<br />Consumer<br />Merchant<br />
    20. 20. PaymentSystem<br />With Automated Clearing House (ACH), there is no authorization transaction.<br />Money movement is batch.<br />ODFI<br />RDFI<br />Consumer<br />Merchant<br />Bank Accounts & ACH<br />
    21. 21. Do I really need to worry about these ?<br />
    22. 22. PayPal X Payments Platform<br />Pay Anyone and Receive from Anyone !<br />Provides APIs to:<br /><ul><li> Facilitate Payments
    23. 23. Manage Accounts 
    24. 24. Information and Reporting</li></li></ul><li>Enabling Different kinds of Payments<br />Simple/Parallel/Chained Payments<br />Preapprovals<br />Subscriptions<br />Reference Transactions<br />Disbursements<br />Micropayments<br />Rewards<br />Donations<br />Digital Goods<br />Gift Certificates<br />
    25. 25. While taking care of<br />Risk and Fraud Management<br />Security<br />Compliance<br />Settlements<br />Refunds/Charge backs<br />
    26. 26. Adaptive Payments API<br />USE CASES<br /><ul><li>Send money
    27. 27. Split payments
    28. 28. Bill payments
    29. 29. Payroll payments
    30. 30. B2B payments
    31. 31. Remittances
    32. 32. Marketplace payments
    33. 33. Virtual currencies
    34. 34. Points and miles
    35. 35. Mass payments
    36. 36. Invoice payments
    37. 37. Recurring payments
    38. 38. Scheduled payments
    39. 39. Money transfers
    40. 40. Mobile/device payments
    41. 41. Government travel
    42. 42. Future payment scenarios…</li></ul>A money movement service that is configurable or "Adaptive" to allow innumerable use cases<br /><ul><li>Configurable service suite for any type of payment or transfer
    43. 43. Not limited to web eCommerce payments</li></ul>Advanced feature: Modular payment approval<br /><ul><li>Built for web, mobile, future, or custom methods for approval
    44. 44. Pre-approval allows for approval off PayPal.com</li></ul>Advanced feature: Pre-approved payments<br /><ul><li>Pre-approval for one-time, multi-use, and subscription payments
    45. 45. Configurable personal identification number (PIN) support</li></ul>Advanced feature: Parallel and chained payments<br /><ul><li>Allows single payment to multiple receivers
    46. 46. Facilitates multiple use cases: marketplace payments, service fees, multi-merchant checkout, and so on</li></li></ul><li>WHAT YOU GET WITH ADAPTIVE PAYMENTS<br /><ul><li>Send money
    47. 47. Implicit send money
    48. 48. Pre-approved payments (with PIN)
    49. 49. Parallel split payments
    50. 50. Chained split payments</li></li></ul><li>THE ACTORS<br />PayPal<br />The Sender<br />A person or business whose PayPal account is being credited<br />A person or business whose PayPal account is being debited<br />C<br />The Receiver<br />The API CALLER<br />The API access account who makes the Adaptive Payments service calls: may be the sender, one of the receivers, or a third party<br />
    51. 51. SEND MONEY<br />Basic building block allows merchants to transfer money from one entity to another<br />
    52. 52. PREAPPROVED PAYMENTS<br /><ul><li>Pre-authorization of money transfer from customer (sender) to API caller
    53. 53. Allows an API caller to make payments on behalf of a sender within the constraints specified
    54. 54. PIN optional for future payments made within the authorized amount</li></ul>C<br />Pre Approval<br />
    55. 55. PARALLEL PAYMENTS<br /><ul><li>Pay multiple recipients at once
    56. 56. Future interactions with each transaction can be separate
    57. 57. Enable partnership opportunities</li></ul>₤10<br />₤100<br />₤40<br />Sender Visibility<br />₤50<br />
    58. 58. CHAINED PAYMENTS<br />Instant payment and disbursements<br />Sender sees one payment to primary receiver<br />In one motion, money to secondary receivers sent<br />Supports commission-based payments<br />₤100<br />₤10<br />₤40<br />Sender Visibility<br />Primary<br />₤50<br /><ul><li>Funds transfer is serial
    59. 59. Reversal and refund tools available to manage business agreements between receivers</li></li></ul><li>COMBINE<br />Primary<br />AND<br />C<br />Pre Approval<br />
    60. 60. COMBINE<br />AND<br />C<br />Pre Approval<br />
    61. 61. COMBINE<br />X<br />Primary<br />
    62. 62. COMBINE<br />Primary<br />AND<br />
    63. 63. So what can I do with Adaptive Payments? <br />
    64. 64. SOCIAL NETWORKING<br /><ul><li>Want to build a person-2-person send money application for your favorite social networking site?
    65. 65. You can design a payment solution using Adaptive Payments.</li></li></ul><li>GAMING<br /><ul><li>Want to build a game that takes micropayments on a pay as you go basis?
    66. 66. You can design a payment solution using Adaptive Payments. </li></li></ul><li>GAMING PLATFORM<br /><ul><li>Want to host many games and take a cut of the payment and pass the rest on game creator?
    67. 67. You can design a payment solution using Adaptive Payments.</li></ul>Primary<br />
    68. 68. PAYOUTS<br /><ul><li>Want to create an application to allow people to pay their employees or their vendors exclusively through an API?
    69. 69. You can design a payment solution using Adaptive Payments. </li></li></ul><li>CROWD SOURCING<br /><ul><li>Want to create a business that needs to pay a workforce in the cloud?
    70. 70. You can design a payment solution using Adaptive Payments.</li></ul>OR<br />Primary<br />
    71. 71. DISTRIBUTED REFERRAL<br /><ul><li>Want to create a simple referral program for shopping carts?
    72. 72. You can design a payment solution using Adaptive Payments.</li></ul>Primary<br />
    73. 73. RENT PAYMENTS<br /><ul><li>Want to create an application for landlords to collect rent?
    74. 74. You can design a payment solution using Adaptive Payments.</li></li></ul><li>API<br />WEB<br />UseCase<br />Sender<br />Business<br />Send money<br />Implicit send money<br />Pre-approved payments (with PIN)<br />Split payments: chained<br />Pay API<br />Pay Key<br />Redirect User to PayPal<br />39<br />User Name = P_Mart_admin.api Currency = USD<br />Password = keep$secret Receiver email = Business@P_Mart.com<br />Signature = 23KJHO5AS09I32SDROR Tracking ID = 234235986<br />Sender Email = john_m@mail.com Cancel URL = www.P_Mart.com/home<br />Amount = 100 Return URL = www.P_Mart.com/apstore<br />Request<br />Pay Key = PA-84HK2A57FCOP3RW <br />Response<br />39<br />Confidential and Proprietary<br />39<br />
    75. 75. PAYMENT APPROVAL: WEB MODULE<br />1. Login<br />Payment Confirmation<br />2. Review Your Payment<br />3. Redirect<br />
    76. 76. API<br />WEB<br />UseCase<br />Sender<br />Business<br />Send money<br />Implicit send money<br />Pre-approved payments (with PIN)<br />Split payments: chained<br />Pay API<br />Pay Key<br />Redirect User to PayPal<br />Return URL<br />41<br />Redirection URL= www.P_Mart.com/apstore<br />IPN= https://ww.P_Mart.com/IPN<br />Sender Email: john_m@mail.com<br />Receiver Email: Business@P_Mart.com<br />Redirect<br />Confidential and Proprietary<br />41<br />Notification<br />Confidential and Proprietary<br />41<br />
    77. 77. API<br />WEB<br />UseCase<br />Sender<br />Photographer<br />Send Money<br />Implicit send money<br />Pre-approved payments (with PIN)<br />Split payments: chained<br />Pay API<br />Pay Key<br />42<br />42<br />User Name = P_Mart_admin.api Amount = 2000<br />Password = keep$secret Currency = USD<br />Signature = 23KJHO5AS09I32SDROR Fee Paid by = Sender<br />Sender Name = Business@P_Mart.com<br />Receiver email = Photographer1@mail.com<br />IPN= https://www.P_Mart.com/IPN<br />Sender Email: Business@P_Mart.com<br />Receiver Email: Photographer1@mail.com<br />Request<br />Notification<br />Paykey = AP-234DEF95GAT230BET<br />Status = Complete<br />Response<br />
    78. 78. API<br />WEB<br />WebGames<br />UseCase<br />Sender<br />Receiver<br />Send Money<br />Implicit send money<br />Pre-approved payments (with PIN)<br />Split payments: chained<br />PreApproval<br />PreApp Key<br />Redirect User to PayPal<br />User Name = WebGames_admin.api Amt. per Payment = 100<br />Password = keep$secret Max. Number of Payments = N/A<br />Signature = 23KJHO5AS09I32SDROR Payment Period = N/A<br />User Email = john_m@mail.com Max. Payments per Period = N/A <br />Expiration Date = 12/30/2009 Day of Period = N/A<br />Starting Date = 11/05/2009 Return URL = www.WebGames.com/apstore<br />Max. Amount = 1000 Cancel URL = www.WebGames.com/home<br />PreApproval Key = PA-84HK2A57FCOP3RW <br />Request<br />PreApproval Key = PA-84HK2A57FCOP3RW<br />Response<br />Redirect User<br />Confidential and Proprietary<br />43<br />Confidential and Proprietary<br />43<br />Pre-approved Payment AgreementSign-Up<br />
    79. 79. 1. Login<br />PRE-APPROVAL: WEB MODULE<br />2. Review Your Payment<br />3. Redirect<br />
    80. 80. API<br />WEB<br />WebGames<br />UseCase<br />Sender<br />Receiver<br />Send Money<br />Implicit send money<br />Pre-approved payments (with PIN)<br />Split payments: chained<br />PreApproval<br />PreApp Key<br />Redirect User to PayPal<br />Return URL<br />IPN= https://ww.WebGames.com/IPN<br />Sender Email: john_m@mail.com<br />Receiver Email: GameDeveloper@paypal.com<br />Notification<br />Pre-approved Payment AgreementSign-Up<br />
    81. 81. API<br />WEB<br />UseCase<br />Sender<br />Rental App<br />Send Money<br />Implicit send money<br />Pre-approved payments (with PIN)<br />Split payments: chained<br />Pay API<br />Pay Key<br />Redirect User to PayPal<br />Return URL<br />User Name = Rental_admin.api Secondary Receiver [2] = Sec Receiver_2@mail.com<br />Password = keep$secret Amount = 50.00<br />Signature = 23KJHO5AS09I32SDROR Tracking ID = 234235986<br />Sender Email = john_m@mail.com Cancel URL = www.PayRent.com/home<br />Currency = USD Return URL = www.PayRent.com/apstore<br />Primary Receiver [0] = Prim Receiver@mail.com<br />Amount = 1000.00<br />Secondary Receiver [1] = Sec Receiver_1@mail.com<br />Amount = 40.00 <br />Request<br />IPN= https://www.Rental.com/IPN<br />Sender Email: john_m@mail.com<br />Receiver Email: PrimReceiver@paypal.com<br />Pay Key = PA-84HK2A57FCOP3RW <br />Response<br />Notification<br />Confidential and Proprietary<br />46<br />Confidential and Proprietary<br />46<br />
    82. 82. Development Process<br />Submit for application review<br />Get API credentials<br />Go Live<br />Design and build application<br />Create Sandbox account<br />Get APP ID<br />Signup on<br />x.com<br />
    83. 83. X.Com – Developer Portal<br />
    84. 84. X.com<br /><ul><li>Technical Docs for all products
    85. 85. SDKs and Sample code
    86. 86. Forums – non-moderated content
    87. 87. Blogs – PayPal and developers
    88. 88. Connected with PayPal Site
    89. 89. Docs rating and commenting
    90. 90. Instant feedback from developers
    91. 91. Videos
    92. 92. Application ID (AppID)</li></li></ul><li>Sandbox (developer.paypal.com)<br /><ul><li>Manage Sandbox test accounts
    93. 93. Manage Sandbox API Credentials
    94. 94. Monitor Sandbox payment confirmation emails
    95. 95. Instant Payment Notification Simulator</li></li></ul><li>LEARN AND SHARE<br />www.x.com<br />Twitter: @paypalx, @ppalavilli<br />www.facebook.com/paypalx<br />

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