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 2010 A Deep-Dive On Payments Everything a developer would need to know !

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/MCommerce 4

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

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

10. building and running an app is cheap 7

11. But 8

12. a successful and profitable company needsGood Monetization Strategy 9

13. Advertising ? 10

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

15. Convinced ? 12

16. How Payments work ? the world of Payment Networks 13

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

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

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

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

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

22. CHARGEBACKS Consumers have the right to chargeback transactions. PaymentSystem Acquirer Issuer Consumer Merchant 19

23. CHARGEBACKS Consumers have the right to chargeback transactions. The funds are withdrawn from the merchant’s account and credited to the consumer’s account. PaymentSystem Acquirer Issuer Consumer Merchant 20

24. DEBIT CARDs PaymentSystem Acquirer Issuer Consumer Merchant 21

25. DEBIT CARDs PaymentSystem Acquirer Issuer Consumer Merchant 22

26. 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

27. BANK ACCOUNTS AND ACH Clearing House ODFI RDFI Consumer Merchant 24

28. BANK ACCOUNTS AND ACH Clearing House ODFI RDFI Consumer Merchant 25

29. PaymentSystem ODFI RDFI Consumer Merchant BANK ACCOUNTS AND ACH With 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 Providers 30

34. Phone/Mail/FAX/CASH 31

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

36. 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

37. 34

38. PCI/DSS Compliance Required! 35

39. 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

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

41. Usually simple Web APIs(if any) 38

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

43. How can PayPal help you ? 40

44. 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

45. 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

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

47. 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

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

49. 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

50. Building blocks DIY! 47

51. x.com 48

52. 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

53. http://bit.ly/future_of_money 50

54. 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