Online Payments For Developers

Aug, 15th 2010
A Deep-Dive On Payments
Everything a developer would need to know !

outline
Why should I care about Payments ?
How Payments work ?
How to add Payments to your application ?
How can PayPal help you ?
2

Why should I care about Payments ?
3

Ecommerce/MCommerce
4

“chase your dream, money will follow”
5

Build the product right and build the audience first – if not monetization is irrelevant
6

building and running an app is cheap
7

a successful and profitable company needsGood Monetization Strategy
9

Advertising ?
10

Virtual Goods/CurrencyPremium ContentValue added ServicesMembershipsSubscriptionCharge for AppsFinancingMerchandiseLicense of Content, Brand and Services
11

Convinced ?
12

How Payments work ?
the world of Payment Networks
13

Credit Cards
The usage of the card is authorized by the issuer in real time.
PaymentSystem
Acquirer
Issuer
Consumer
Merchant
14

Credit Cards
The usage of the card is authorized by the issuer in real time.
PaymentSystem
Acquirer
Issuer
Consumer
Merchant
15

HOW THE MONEY MOVES
The authorizations are captured immediately and settled in batch.
PaymentSystem
Acquirer
Issuer
Consumer
Merchant
16

HOW THE MONEY MOVES
The authorizations are captured immediately and settled in batch.
PaymentSystem
Acquirer
Issuer
Consumer
Merchant
17

CHARGEBACKS
Consumers have the right to chargeback transactions.
PaymentSystem
Acquirer
Issuer
Consumer
Merchant
18

CHARGEBACKS
PaymentSystem
Acquirer
Issuer
Consumer
Merchant
19

CHARGEBACKS
The funds are withdrawn from the merchant’s account and credited to the consumer’s account.
PaymentSystem
Acquirer
Issuer
Consumer
Merchant
20

DEBIT CARDs
PaymentSystem
Acquirer
Issuer
Consumer
Merchant
21

DEBIT CARDs
PaymentSystem
Acquirer
Issuer
Consumer
Merchant
22

DEBIT CARD DIFFERENCES
PaymentSystem
With debit cards, processed as a debit card, the authorization transaction and the settlement (capture) transaction are the same.
Money movement is in real time.
Acquirer
Issuer
Consumer
Merchant
23

BANK ACCOUNTS AND ACH
Clearing
House
ODFI
RDFI
Consumer
Merchant
24

Clearing
House
ODFI
RDFI
Consumer
Merchant
25

PaymentSystem
ODFI
RDFI
Consumer
Merchant
With Automated Clearing House (ACH), there is no authorization transaction.
Money movement is batch.
26

Still with me ?
27

Popup quiz ?
Which payment method is easy to steal money from ?
28

How to add Payments to your application ?
29

Payment GatewaysPayment Providers
30

Phone/Mail/FAX/CASH
31

Payment Gateways
Process Credit/Debit Card Payments directly through Payment Networks
32

You Need a Merchant Account
Long application process and requires underwriting approval
Typically takes 3 – 10 days depending on your business
48 hrs to 5 Business Days for Settlements
fees vary between gateways and banks
Deal with charge backs !
33

PCI/DSS Compliance
Required!
35

Payment Providers
No merchant account required !
(act as a Merchant Account on behalf of you)
Better protection against charge backs.
Act as Online Wallet for end users.
Risk and Fraud protection.
36

PCI/DSS Compliance
Depends on the functionality used but in most cases isn’t required.
37

Usually simple Web APIs(if any)
38

Special services/Features
Invoicing
Subscriptions
Recurring Payments
Micro-payments
Disbursements
Mobile Payments
Hosted Solutions
39

How can PayPal help you ?
40

Open global Payments Platform
Enables various monetization models
Over 190 countries and 24 currencies
Flexible Services and APIs
Serves Consumers, Merchants/Sellers & Developers!
Risk and Fraud Management
41

Email Payments
(old school)
invoice over email from PayPal
Virtual Terminal
POS terminal on the Cloud !
accept payments over phone, mail, & fax
Website Payments Standard
(aka WPS or “cut & paste payments”)
buttons, buttons, buttons
42

Simple but Powerful
Sell Single/Multiple Items (cart)
Subscriptions
Donations
Inventory Control
UI Customization
Fraud/Risk Controls
43

Express Checkout
“all it takes is 3 API Calls”
a checkout solution
Website Payments Pro
Direct Payments + Express Checkout
Mass Payments
disbursements
Payflow
a payment gateway
44

Adaptive Platform
(Adaptive Payments & Adaptive Accounts)
Open Platform providing core payment APIs
45

Enabling Different kinds of payment models
Simple Payments
Chained Payments
Parallel Payments
Preapprovals
Subscriptions
Recurring Payments
Web Checkout
Micro Payments
Primary
C
Pre Approval
46

Building blocks DIY!
47

x.com
48

PayPal X Second Developer Challenge
$100,000 grand prize for the most innovative idea
$10,000 PayPal X category Awards
Best application that leverages PayPal X’s Mobile Payments Library
Best application built by university students
Best consumer application
Best application that promotes cross-border commerce
Best application that takes advantage of Yahoo!’s platform
Best application that takes advantage of eBay’s platform
49

http://bit.ly/future_of_money
50

Let us know what you need!
(30% of PayPal’s roadmap is based on your feedback)
www.x.com
Twitter: @paypalx, @ppalavilli
www.facebook.com/paypalx
Rate my talks: http://speakerrate.com/ppalavilli
51

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Online Payments For Developers

by PayPalX Developer Network

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