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Evolution of the PayPal Platform:
Journey to APIs & Microservices
DeveloperWeek Conference
February 17, 2016
Deepak Nadig
...
PAYPAL CONTEXT
2
– 179 million active customer accounts
– 203 markets and 100 currencies
– Serves 2M+ external developers
...
PAYPAL API PLATFORM USAGE OVER THE YEARS
3
PayPal API
PayPal Capabilities
API PLATFORM CHALLENGES (2012)
4
External API
• Multiple developer portals
• Overlapping, inconsistent APIs
• Learn from l...
API PLATFORM – CURRENT (2012) & TARGET
5
API Definition Internal or External Universal
API Discovery Painful Developer Por...
PAYPAL API PLATFORM
6
Portfolio of APIs
aligned by business capabilities,
realized by isolated and encapsulated services,
...
BUILDING A GOOD API AND MICROSERVICE
7
API First
API as a Product
• Work back from end customer use cases
• API Design Sta...
LOOSE COUPLING
8
• API Portfolio
• Orthogonal capabilities
• Bounded contexts
• Related by “foreign keys”
id
id
/invoicing...
Microservice Granularity
9
• Cohesive
• Should realize a cohesive and loosely coupled capability
• Adaptability
• Should n...
TARGET STATE - RUN-TIME ARCHITECTURE
10
API Facade
Payments Instruments Customer
Credit Risk Compliance
Invoicing
Disputes...
MATURITY MODEL FOR MANAGING CHANGE
11
Maturity
Level
Maturity Level
Name
Characteristics (Design, Functional, Operational)...
API EVOLUTION – THE JOURNEY
12
2016
NORM
2012
INITIATED
President buy-in
Company mandate
Seed organization
Right people
20...
TO CLOSE
13
• Business imperative has prioritized agility over cost efficiency
• Agility comes from flexible architectures...
Thank You
14
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DeveloperWeek 2016 - Evolution of the PayPal Platform: Journey to APIs & Microservices

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DeveloperWeek 2016 - Evolution of the PayPal Platform: Journey to APIs & Microservices

  1. 1. Evolution of the PayPal Platform: Journey to APIs & Microservices DeveloperWeek Conference February 17, 2016 Deepak Nadig @deepak_nadig
  2. 2. PAYPAL CONTEXT 2 – 179 million active customer accounts – 203 markets and 100 currencies – Serves 2M+ external developers – 2015: TPV of $282 Billion, 4.9 Billion transactions – Mobile: 23% of TPV, 28% of transactions – Q4 2015 – TPV of $82 Billion, $10400 / second – Growing 29% YoY – 1.43 Billion transactions, 15.6 million payments / day – Mobile: 25% of TPV, 45% volume growth – 22% cross border trade In a globally dynamic environment – 300+ features per quarter; 100K+ LOC every two weeks – 17K employees across the globe
  3. 3. PAYPAL API PLATFORM USAGE OVER THE YEARS 3 PayPal API PayPal Capabilities
  4. 4. API PLATFORM CHALLENGES (2012) 4 External API • Multiple developer portals • Overlapping, inconsistent APIs • Learn from large documents • Complex sign-up process • Incomplete, unreliable Sandbox Internal SOA • Discovery through tribal knowledge • Overlapping, inconsistent APIs • Integrating with an API took weeks • Tight coupling; monoliths • Proprietary standards & technology
  5. 5. API PLATFORM – CURRENT (2012) & TARGET 5 API Definition Internal or External Universal API Discovery Painful Developer Portal API Design Project specific API as a Product Architecture Tightly coupled SOA Loosely coupled SOA Technology Proprietary Standards based Integration Expensive TTFHW1 < x min (1) Time To First Hello World – Time to make a simple call/application using APIs
  6. 6. PAYPAL API PLATFORM 6 Portfolio of APIs aligned by business capabilities, realized by isolated and encapsulated services, that can be used by internal and external developers to develop applications and integrations quickly and cost effectively
  7. 7. BUILDING A GOOD API AND MICROSERVICE 7 API First API as a Product • Work back from end customer use cases • API Design Standards • Capability and domain modeling • API portfolio Developer Experience • Easy to learn, integrate, diagnose • Time To First Hello World API Quality Attributes • Response time • Availability Service Implementation • Isolation of code and data • Encapsulation MONOLITHMICROSERVICES
  8. 8. LOOSE COUPLING 8 • API Portfolio • Orthogonal capabilities • Bounded contexts • Related by “foreign keys” id id /invoicing /payments /risk Domain model  API • Entities, Attributes • Verbs • Relationships • State machine, Domain events How is your implementation prioritizing customer needs vs. cost? • API • Domain model  Problem space • No shared definitions • Agreement on vocabulary & standards • Service implementation • Reuse = Coupling • Tolerance to latency & availability • Code & data isolation
  9. 9. Microservice Granularity 9 • Cohesive • Should realize a cohesive and loosely coupled capability • Adaptability • Should not mix functionality exposed to different rates of change • Scalability • Should not mix different levels of scalability • Security • Should not mix different levels of security Granularity is usually a function of company growth stage and organization structure
  10. 10. TARGET STATE - RUN-TIME ARCHITECTURE 10 API Facade Payments Instruments Customer Credit Risk Compliance Invoicing Disputes PayPal Applications (Wallet, POS) 2nd-party Applications (eBay, Braintree) 3rd-party Server Applications (Online websites) PayPal Web Applications Experience APIs Capability APIs Event Bus Webhooks 3rd-party Mobile Applications (Uber, PhotoCard) Batch Processing External Notifications Batch APIsProtocol conversion OAuth, CORS Routing Orchestration
  11. 11. MATURITY MODEL FOR MANAGING CHANGE 11 Maturity Level Maturity Level Name Characteristics (Design, Functional, Operational) Level 1 Exists All services (classic & new) Level 2 Functional Complies with API standards, fully tested, basic documentation Level 3 Core API aligned with product structure, complete developer experience Level 4 Performant Complies with Service Level Objective (response-time, availability) Level 5 Ideal Fully isolated (code & data) and encapsulated Shared 2014 Goal for completing at least 75% of platform at Maturity Level 3+ Shared 2015 Goal for completing at least 50% of platform at Maturity Level 5
  12. 12. API EVOLUTION – THE JOURNEY 12 2016 NORM 2012 INITIATED President buy-in Company mandate Seed organization Right people 2013 EXTERNAL Launched externally Started internally Early adopters 2014 EXPANSION Complete majority Educate, evangelize Recognize success 2015 MANAGE LEGACY Retire internal legacy Transition to norm Webhooks
  13. 13. TO CLOSE 13 • Business imperative has prioritized agility over cost efficiency • Agility comes from flexible architectures and short cycle times • Flexibility comes from APIs and loosely-coupled (micro) services • Moving to a flexible architecture needs persistence and air cover • Culture has to go hand-in-hand with architecture for sustenance
  14. 14. Thank You 14

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