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COOL NEW ADVANCES IN PayPal EXPRESS CHECKOUT YP Cheong, Group Product Manager Chad Hoffman, Senior Integration Manager Catherine Chiang, Senior Product Marketing Manager

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AGENDA <ul><li>Express Checkout Overview </li></ul><ul><li>Helping Merchants Choose the Right Solution </li></ul><ul><li>Advanced Features </li></ul><ul><li>Best Practice Integration </li></ul>

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OVERVIEW – PAYPAL IS … <ul><li>a way to pay, </li></ul>a way to checkout, <ul><li>190 countries </li></ul><ul><li>19 currencies </li></ul><ul><li>Multiple languages </li></ul><ul><li>International customer support </li></ul>globally.

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EXPRESS CHECKOUT EXPERIENCE <ul><li>The shortest path with the least hassle for PayPal users to checkout. </li></ul>Shopping Cart Login Review Info Confirm Order (optional) Confirmation

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USERS PREFER EXPRESS CHECKOUT SHORTCUT “ I like that – it seems like it will allow you to bypass entering information.” “ This process is a thousand times easier than the other one.” “ I like that the PayPal orange button was placed on the shopping cart. Now I’m sure I’ll skip some unwanted pages.” <ul><li>Usability Testing Findings </li></ul><ul><li>Users feel confident about clicking on the Checkout with PayPal button. </li></ul><ul><li>Users are familiar with the button and expect it in the flow. </li></ul><ul><li>Users feel the process is streamlined and quicker due to the reduced amount of data entry. </li></ul>

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KEY PERFORMANCE METRICS <ul><li>The PayPal Express Checkout process outperformed the typical flow in each key metric category. </li></ul><ul><li>Only 56% were very satisfied with the amount of time it took to complete the current checkout method. </li></ul><ul><li>97% were “very satisfied” with the Express Checkout process. </li></ul>Key Performance Metrics Current Site (n=389) Express Site (n=389) Ease of Making a Purchase (% of Users Rating 6 or 7 on 1-7 Scale Where 7 = Very Easy) 61% 94% Ease of Using PayPal (% of Users Rating 6 or 7 on 1-7 Scale Where 7 = Very Easy) 79% 96% Satisfaction with Time Required (% of Users Rating 6 or 7 on 1-7 Scale Where 7 = Very Satisfied) 56% 95% No Frustrations (% of Users Selecting ‘None of these’ problem or frustrations) 48% 92% Satisfaction with PayPal (% of Users Rating 6 or 7 on 1-7 Scale Where 7 = Extremely Satisfied) 86% 97% Percentage Change 33% 17% 39% 44% 11%

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THIRD-PARTY RESEARCH comScore finds a 33.6% increase in conversion with PayPal Express Checkout Study conducted in Q1 2009 by comScore on 15 participating PayPal online retailers, which make up approximately 15% of total non-travel ecommerce dollar share. Input ID info Input payment data Input delivery address data Confirm basket Input buyer address data Add shipping costs Login to PayPal Review payment Standard Checkout 59.5% conversion 78.3% conversion Process payment £

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AGENDA <ul><li>Express Checkout Overview </li></ul><ul><li>Helping Merchants Choose the Right Solution </li></ul><ul><li>Advanced Features </li></ul><ul><li>Best Practice Integration </li></ul>

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THE RIGHT MIX OF SOLUTIONS Website Payments Pro / Standard + Express Checkout Does merchant already accept credit cards online? Have Internet Merchant Account? Payflow Gateway + Express Checkout Express Checkout Yes No Yes No

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INTEGRATING INTO MERCHANT’S PLATFORM If the service providers have not integrated with PayPal, then integrate directly with Express Checkout API. Express Checkout is pre-integrated with many solution providers. Setup is easy! Segments Sample Partners Cart providers (hosted & software) Yahoo!, UltraCart, OScommerce Commerce Platform MICROS, ATG, Truition Gateways CuberSource, CardinalCommerce Financial Institutions (FIs) Chase Paymentech, Litle, Wells Fargo

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AGENDA <ul><li>Express Checkout Overview </li></ul><ul><li>Helping Merchants Choose the Right Solution </li></ul><ul><li>Advanced Features </li></ul><ul><li>Best Practice Integration </li></ul>

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INSTANT UPDATE API Cart Place Order Shipping Options PayPal Login PayPal Review WebsiteName.com WebsiteName.com. Merchant API Server Shipping Carriers/ Tax Rate Providers

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FRAUD MANAGEMENT FILTERS <ul><li>Benefits: </li></ul><ul><li>Reduce fraud </li></ul><ul><li>Improve efficiency </li></ul><ul><li>Decline less and drive sales </li></ul><ul><li>Product offering: </li></ul><ul><li>Fraud Management Filters are free </li></ul><ul><li>Advanced Fraud Management Filters: $20/month, 5¢/transaction </li></ul>Merchant sets up filter preferences. Transactions are placed in the merchant’s review queue. Merchant reviews and decides which ones to “Accept” or “Deny”.

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INSTANT PAYMENT REVIEW Pending Payment Review Completed Reversed Completed Payment Status API Operation Delay Shipment / Get Txn Details Pending Payment Review Cancel Order Payment Status Create / Release Order DoExpressCheckout DoRefundPayment DoAuthorization DoReauthorzation BillUser <ul><li>Results: </li></ul><ul><li>Recouped over $2M loss by avoiding seller exposure </li></ul><ul><li>Total loss impact to be determined </li></ul><ul><li>Benefits: </li></ul><ul><ul><ul><li>Minimizes seller losses </li></ul></ul></ul><ul><ul><ul><li>Increases merchant security </li></ul></ul></ul>

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RECURRING PAYMENTS Merchant sets up recurring payment items. Customer selects Express Checkout and agrees to payment terms. At subsequent billing cycles, PayPal charges customer on behalf of merchant. Merchant can view, modify, or suspend payments. <ul><li>Benefits: </li></ul><ul><li>Save time </li></ul><ul><li>Build loyalty </li></ul><ul><li>Improve cash flow </li></ul><ul><li>Target merchants: </li></ul><ul><li>Ideal for: </li></ul><ul><li>Subscriptions </li></ul><ul><li>Membership dues </li></ul><ul><li>Installment payments </li></ul>1 2 3 4

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AGENDA <ul><li>Express Checkout Overview </li></ul><ul><li>Helping Merchants Choose the Right Solution </li></ul><ul><li>Advanced Features </li></ul><ul><li>Best Practice Integration </li></ul>

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API INTERFACES <ul><li>API certificate credentials </li></ul><ul><ul><li>Username and password in API request and PayPal-issued certificate installed on server </li></ul></ul><ul><li>API signature credentials </li></ul><ul><ul><li>Username, password, and signature in API request </li></ul></ul>https://api-3t.beta-sandbox.paypal.com/nvp?VERSION=51.0 &SIGNATURE=***&USER=***&PWD=*** &METHOD=SetExpressCheckout&RETURNURL=http://ebay.com &CANCELURL=http://paypal.com&AMT=100.00&PAYMENTACTION=Sale TOKEN=EC-21H43324T1124670K&TIMESTAMP=2008-04-30T20:10:15Z &CORRELATIONID=7dfdb5fbe56ac&ACK=Success &VERSION=51.0&BUILD=548868 NVP Request: NVP Response: Name-Value Pair (NVP) and SOAP interfaces

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ERROR HANDLING <ul><li>ACK parameter indicates the API call status. </li></ul><ul><ul><li>Success —It worked! </li></ul></ul><ul><ul><li>SuccessWithWarning —Worked but you are probably doing something wrong </li></ul></ul><ul><ul><li>Failure —Your code or the PayPal server experienced an error </li></ul></ul><ul><li>Check the error code. </li></ul><ul><li>Expect and handle declines. </li></ul><ul><li>Retry risk declines. </li></ul>

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TIMEOUTS <ul><li>Many APIs respond in less than 1 second. </li></ul><ul><li>95% of all API responses under 5 seconds. </li></ul><ul><li>APIs that move money take the longest. </li></ul><ul><li>Retry timing should depend on the API call. </li></ul><ul><ul><li>Informational (GetExpressCheckoutDetails, TransactionDetails, and so on) should be retried quickly (10 or 15 seconds) </li></ul></ul><ul><ul><li>Transactional (DoAuthorization, DoCapture, and so on) should wait as long as possible </li></ul></ul><ul><ul><ul><li>If customer is waiting, no more than 20 to 30 seconds </li></ul></ul></ul><ul><ul><ul><li>Otherwise, 60 to 120 seconds </li></ul></ul></ul>

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LOGGING <ul><li>At a minimum, log the correlation ID from the API response. </li></ul><ul><li>Ideally log the entire API request and response. </li></ul><ul><ul><li>Make sure to strip out sensitive data including credentials and credit card numbers </li></ul></ul><ul><li>Software development kits have examples. </li></ul>

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PLACEMENT & LOGOS <ul><li>Express Checkout Shortcut (ECS) </li></ul><ul><ul><li>Location: On the cart before address collection </li></ul></ul><ul><ul><li>Usage: Clickable button must redirect to PayPal </li></ul></ul><ul><li>Express Checkout Mark (ECM) </li></ul><ul><ul><li>Location: On payment page with other payment options </li></ul></ul><ul><ul><li>Usage: A graphic used with radio buttons or a drop-down menu </li></ul></ul><ul><li>Graphics should be hosted at PayPal. </li></ul><ul><ul><li>Express Checkout button: https://www.paypal.com/express-checkout-buttons </li></ul></ul><ul><ul><li>Acceptance marks: https://www.paypal.com/us/ cgi-bin/webscr?cmd=xpt/cps/general/ OnlineLogoCenter-outside </li></ul></ul>

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EXPRESS CHECKOUT PAGES <ul><li>Header image </li></ul><ul><li>Business name </li></ul><ul><li>Return and cancel URLs </li></ul><ul><li>Order review elimination </li></ul><ul><li>Phone number </li></ul><ul><li>Billing address </li></ul><ul><li>Shipping address </li></ul>

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HEADER IMAGE <ul><li>On SetExpressCheckout, add: </li></ul><ul><ul><li>HDRIMG =https://www.paypalmerchantservices.com/demo/img/ec_logo.jpg </li></ul></ul>

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RETURN AND CANCEL URLs <ul><li>On SetExpressCheckout, add: </li></ul><ul><ul><li>RETURNURL =http://yoursite.com/checkout </li></ul></ul><ul><ul><li>CANCELURL =http://yoursite.com/cart </li></ul></ul>CANCEL URL RETURN URL

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ORDER REVIEW ELIMINATION <ul><li>Review page shows the amount from the SetExpressCheckout call. </li></ul><ul><li>Button changes from “Continue” to “Pay Now.” </li></ul><ul><li>You must still make the DoExpressCheckoutPayment API call. </li></ul><ul><li>Add useraction=commit to the redirect URL: </li></ul><ul><ul><li>https://www.sandbox.paypal.com/cgi-bin/webscr?cmd= _express-checkout&useraction=commit&token= </li></ul></ul>

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BUSINESS NAME <ul><li>Can be changed by PayPal account management </li></ul>

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PHONE NUMBER <ul><li>Under the Profile tab, go to Website Payment Preferences </li></ul><ul><li>Change the Contact Telephone Number setting. </li></ul>Optional Required

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SHIPPING ADDRESS <ul><li>On SetExpressCheckout, add: </li></ul><ul><ul><li>ADDROVERRIDE =1 </li></ul></ul><ul><li>On SetExpressCheckout, pass the address and add: </li></ul><ul><ul><li>NOSHIPPING =1 </li></ul></ul>

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IMMEDIATE VS. DELAYED SETTLEMENT <ul><li>PAYMENTACTION=Sale </li></ul><ul><ul><li>Immediate settlement of funds </li></ul></ul><ul><ul><li>No flexibility but very simple </li></ul></ul><ul><li>PAYMENTACTION=Order </li></ul><ul><ul><li>No funds are held until DoAuthorization call </li></ul></ul><ul><ul><li>Flexible </li></ul></ul><ul><ul><ul><li>Multiple authorizations, multiple captures </li></ul></ul></ul><ul><ul><ul><li>Captures: 10 by default, configurable up to 99 </li></ul></ul></ul><ul><ul><ul><li>Capture window: 29 days by default, configurable up to 365 </li></ul></ul></ul><ul><ul><ul><li>Honor period: 3 days by default, configurable up to 10 </li></ul></ul></ul>

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INVOICE ID <ul><li>Invoice ID can be provided on orders and captures. </li></ul><ul><li>PayPal checks Invoice IDs for duplication. </li></ul><ul><li>An order and all its child captures must all have the same Invoice ID or must all have different Invoice IDs. </li></ul><ul><li>Duplication checking: </li></ul><ul><ul><li>Under the Profile tab, go to Payment Receiving Preferences </li></ul></ul><ul><ul><li>Change the Block Accidental Payments setting </li></ul></ul>

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REFUNDS <ul><li>Only refund against Capture IDs. </li></ul><ul><li>Full and partial refunds are supported. </li></ul><ul><li>With settlement withdrawal, refunds could fail or could be pending. </li></ul>

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CONCLUDING THOUGHTS <ul><li>Express Checkout provides the shortest path with the least hassle for PayPal users. </li></ul><ul><li>Express Checkout mixes well with all options from PayPal. </li></ul><ul><li>Advanced features include Bill Me Later, Instant Update API, Fraud Management Filters, Instant Payment Review, and Recurring Payments. </li></ul><ul><li>Follow the best practices guidelines to ensure that your applications provide the optimal user experience and maximum profits. </li></ul>

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MORE INFORMATION <ul><li>Starting point: </li></ul><ul><ul><li>https://merchant.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=merchant/express_checkout </li></ul></ul><ul><li>R ecommended integration links: </li></ul><ul><ul><li>Integration wizard: http://integrationwizard.x.com/ecpaypal/main.php </li></ul></ul><ul><ul><li>Get Started video: http://www2.eventsvc.com/paypaldev/register/874078d7-5ee4-433a-b5eb-2b096a09292e </li></ul></ul><ul><ul><li>Integration Guide: https://cms.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=developer/e_howto_api_ECGettingStarted </li></ul></ul><ul><li>x .com: </li></ul><ul><ul><li>API Reference: https://cms.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=developer/howto_api_reference </li></ul></ul><ul><ul><li>Technical Documentation: https://cms.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=developer/library_documentation#ec </li></ul></ul><ul><ul><li>Library for SDK, sample code, plug-ins, and so on: https://cms.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=developer/library_overview_land </li></ul></ul>

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LEARN AND SHARE <ul><li>www.x.com </li></ul><ul><li>Twitter: @paypalx </li></ul><ul><li>www.facebook.com/paypalx </li></ul><ul><li>Innovate 09 hashtag: #ppxi09 </li></ul>LEARN AND SHARE www.x.com Twitter: @paypalx www.facebook.com/paypalx Innovate 09 hashtag: #ppxi09 Proprietary