This document provides an overview of payments for developers, including why payments are important, how different payment methods work, and how to integrate payments into applications. It discusses various monetization strategies and payment networks like credit cards, debit cards, and ACH transfers. The document also describes payment gateways versus payment providers, and how PayPal can help with its global payments platform and APIs that enable many monetization models and payment types, including its Express Checkout and Adaptive Payments solutions.

1. Aug, 15th 2010A Deep-Dive On PaymentsEverything a developer would need to know !

2. outlineWhy should I care about Payments ?

3. How Payments work ?

4. How to add Payments to your application ?

5. How can PayPal help you ?2

6. Why should I care about Payments ?3

7. Ecommerce/MCommerce4

8. “chase your dream, money will follow” 5

9. Build the product right and build the audience first – if not monetization is irrelevant6

10. building and running an app is cheap7

11. But8

12. a successful and profitable company needsGood Monetization Strategy9

13. Advertising ?10

14. Virtual Goods/CurrencyPremium ContentValue added ServicesMembershipsSubscriptionCharge for AppsFinancingMerchandiseLicense of Content, Brand and Services11

15. Convinced ?12

16. How Payments work ?the world of Payment Networks13

17. Credit CardsThe usage of the card is authorized by the issuer in real time.PaymentSystemAcquirerIssuerConsumerMerchant14

18. Credit CardsThe usage of the card is authorized by the issuer in real time.PaymentSystemAcquirerIssuerConsumerMerchant15

19. HOW THE MONEY MOVESThe authorizations are captured immediately and settled in batch.PaymentSystemAcquirerIssuerConsumerMerchant16

20. HOW THE MONEY MOVESThe authorizations are captured immediately and settled in batch.PaymentSystemAcquirerIssuerConsumerMerchant17

21. CHARGEBACKSConsumers have the right to chargeback transactions.PaymentSystemAcquirerIssuerConsumerMerchant18

22. CHARGEBACKSConsumers have the right to chargeback transactions.PaymentSystemAcquirerIssuerConsumerMerchant19

23. CHARGEBACKSConsumers have the right to chargeback transactions.The funds are withdrawn from the merchant’s account and credited to the consumer’s account.PaymentSystemAcquirerIssuerConsumerMerchant20

24. DEBIT CARDsPaymentSystemAcquirerIssuerConsumerMerchant21

25. DEBIT CARDsPaymentSystemAcquirerIssuerConsumerMerchant22

26. DEBIT CARD DIFFERENCESPaymentSystemWith debit cards, processed as a debit card, the authorization transaction and the settlement (capture) transaction are the same.Money movement is in real time.AcquirerIssuerConsumerMerchant23

27. BANK ACCOUNTS AND ACHClearingHouseODFIRDFIConsumerMerchant24

28. BANK ACCOUNTS AND ACHClearingHouseODFIRDFIConsumerMerchant25

29. PaymentSystemODFIRDFIConsumerMerchantBANK ACCOUNTS AND ACHWith Automated Clearing House (ACH), there is no authorization transaction.Money movement is batch.26

30. Still with me ?27

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

32. How to add Payments to your application ?29

33. Payment GatewaysPayment Providers30

34. Phone/Mail/FAX/CASH31

35. Payment GatewaysProcess Credit/Debit Card Payments directly through Payment Networks32

36. You Need a Merchant Account Long application process and requires underwriting approvalTypically takes 3 – 10 days depending on your business48 hrs to 5 Business Days for Settlementsfees vary between gateways and banksDeal with charge backs !33

37. 34

38. PCI/DSS ComplianceRequired!35

39. Payment ProvidersNo 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

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

41. Usually simple Web APIs(if any)38

42. Special services/Features InvoicingSubscriptionsRecurring PaymentsMicro-paymentsDisbursementsMobile PaymentsHosted Solutions39

43. How can PayPal help you ?40

44. Open global Payments PlatformEnables various monetization modelsOver 190 countries and 24 currenciesFlexible Services and APIsServes Consumers, Merchants/Sellers & Developers!Risk and Fraud Management41

45. Email Payments(old school)invoice over email from PayPalVirtual TerminalPOS terminal on the Cloud !accept payments over phone, mail, & faxWebsite Payments Standard(aka WPS or “cut & paste payments”)buttons, buttons, buttons42

46. Simple but PowerfulSell Single/Multiple Items (cart)SubscriptionsDonationsInventory ControlUI CustomizationFraud/Risk Controls43

47. Express Checkout“all it takes is 3 API Calls”a checkout solutionWebsite Payments ProDirect Payments + Express CheckoutMass Paymentsdisbursements Payflow a payment gateway44

48. Adaptive Platform(Adaptive Payments & Adaptive Accounts)Open Platform providing core payment APIs45

49. Enabling Different kinds of payment modelsSimple PaymentsChained PaymentsParallel PaymentsPreapprovalsSubscriptionsRecurring PaymentsWeb CheckoutMicro PaymentsPrimaryCPre Approval46

50. Building blocks DIY!47

51. x.com48