You may have heard snippets about Adaptive Payments in the press and at preview events. Come get the full scoop on the powerful new integration methods PayPal is adding to your payments toolbox. We'll walk through the methods, how they work, and some actual use cases. Bring your laptop—this is an interactive session!

1. ADAPTIVE PAYMENTS: CHANGING HOW WE PAY WITH PIN, PREAPPROVED, AND SPLIT PAYMENTS Musaab At-Taras, Director of Software Development Catherine Wong, Group Product Manager

4. THE ACTORS A person or business whose PayPal account is being debited A person or business whose PayPal account is being credited The API access account who makes the Adaptive Payments service calls: may be the sender, one of the receivers, or a third party

5. SEND MONEY Basic building block allows merchants to transfer money from one entity to another

9. COMBINE AND C Pre Approval

10. COMBINE C AND Pre Approval

11. COMBINE X

12. COMBINE AND

14. So what can I do with Adaptive Payments?

23. PAYMENT APPROVAL: WEB MODULE 1. Login 2. Review Your Payment 3. Redirect Payment Confirmation

24. Send money Implicit send money Pre-approved payments (with PIN) Split payments: chained Sender Business Pay API Pay Key Redirect User to PayPal Return URL Redirection URL= www.P_Mart.com/apstore IPN= https://ww.P_Mart.com/IPN Sender Email: [email_address] Receiver Email: [email_address] Confidential and Proprietary Confidential and Proprietary Redirect Notification

25. Send Money Implicit send money Pre-approved payments (with PIN) Split payments: chained IPN= https:// www.P_Mart.com/IPN Sender Email: [email_address] Receiver Email: [email_address] Sender Photographer Pay API Pay Key Paykey = AP-234DEF95GAT230BET Status = Complete Response User Name = P_Mart_admin.api Amount = 2000 Password = keep$secret Currency = USD Signature = 23KJHO5AS09I32SDROR Fee Paid by = Sender Sender Name = [email_address] Receiver email = Photographer1@mail.com Request Notification

26. Send Money Implicit send money Pre-approved payments (with PIN) Split payments: chained PreApproval Key = PA-84HK2A57FCOP3RW User Name = WebGames_admin.api Amt. per Payment = 100 Password = keep$secret Max. Number of Payments = N/A Signature = 23KJHO5AS09I32SDROR Payment Period = N/A User Email = john_m@mail.com Max. Payments per Period = N/A Expiration Date = 12/30/2009 Day of Period = N/A Starting Date = 11/05/2009 Return URL = www.WebGames.com/apstore Max. Amount = 1000 Cancel URL = www.WebGames.com/home Confidential and Proprietary Confidential and Proprietary Sender Receiver PreApproval PreApp Key Redirect User to PayPal Request Response PreApproval Key = PA-84HK2A57FCOP3RW Redirect User Pre-approved Payment Agreement Sign-Up

27. PRE-APPROVAL: WEB MODULE 1. Login 2. Review Your Payment 3. Redirect

28. Send Money Implicit send money Pre-approved payments (with PIN) Split payments: chained IPN= https:// ww.WebGames.com/IPN Sender Email: [email_address] Receiver Email: [email_address] Notification Sender Receiver PreApproval PreApp Key Redirect User to PayPal Return URL Pre-approved Payment Agreement Sign-Up

29. Send Money Implicit send money Pre-approved payments (with PIN) Split payments: chained Sender Rental App Pay API Pay Key Redirect User to PayPal Return URL Confidential and Proprietary Confidential and Proprietary Pay Key = PA-84HK2A57FCOP3RW Response User Name = Rental_admin.api Secondary Receiver [2] = Sec [email_address] Password = keep$secret Amount = 50.00 Signature = 23KJHO5AS09I32SDROR Tracking ID = 234235986 Sender Email = [email_address] Cancel URL = www.PayRent.com/home Currency = USD Return URL = www.PayRent.com/apstore Primary Receiver [0] = Prim [email_address] Amount = 1000.00 Secondary Receiver [1] = Sec [email_address] Amount = 40.00 IPN= https:// www.Rental.com/IPN Sender Email: [email_address] Receiver Email: [email_address] Notification Request

30. DEMOS

31. DEMO: Add $1 Donation To Your Checkout Oktay Dogramaci MissionFish Jon Crawford Storenvy

33. SHOPPERS CAN ADD $1 DONATION Shoppers like businesses that support causes (cause marketing)

34. CONFIRMATION SHOWS THE DONATION

35. PARALLEL SPLIT PAYMENT $11 $10 $1 Buyer on Storenvy.com Storenvy store owner receives purchase price MissionFish receives donation for designated charity

37. DEMO Charity Frag