AWS Community Day CPH - Three problems of Terraform
Evolution of the PayPal API Platform: Enabling the future of Money at WooCommerce Conference 2014
1. Evolution of the PayPal API Platform
Enabling the future of Money
WooCommerce Conference 2014
Deepak Nadig, Head of API Platform Engineering
2. PAST, PRESENT & FUTURE OF PAYMENTS
Video also at https://www.youtube.com/watch?v=C4CKhCOQ7c0
3. BASIC NEEDS FROM PAYMENTS
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• Payments need to scale across distances
• Payments across currencies should be seamless
• Payments need to be quick; ideally instantaneous
• Payments need to be secure
• Cost of payments should be low
10. PEER TO PEER PAYMENTS
10
WHERE PAYPAL STARTED
SEND AND REQUEST MONEY
SOCIAL INTERACTIONS
ADHOC PAYMENTS
11. ACCESS TO PAYMENTS ANYWHERE
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ARDUINO/TEMBOO
API AGGREGATORS
INTERNET OF THINGS
12. EVOLUTION OF EXTERNAL API PLATFORM
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PayPal API
PayPal Capabilities
2001 Instant Payment Notification
2004 Transaction, Mass Pay API
2005 Direct Payment API, Express Checkout
2007 Payment APIs (NVP)
2009 Adaptive APIs (SOAP/XML, NV, JSON)
2013 Payment APIs (REST)
13. WHAT GOT US HERE WON’T TAKE US THERE
1
3
Mobile Local
Social
Digital
Time
Performance
Limits
reached
High
growth
Kickoff
14. API PLATFORM – 2012 TO TARGET STATE
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API Definition Internal or External Universal
API Discovery Difficult 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
15. API PLATFORM QUALITIES
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API First
API as a Product
• Work back from the use cases
• API Design
• API portfolio
• Aligned by capabilities
Developer Experience
• Easy to learn, integrate, diagnose
• Time To First Hello World
API Quality Attributes
• Response-time
• Availability
Service Architecture
• Encapsulated, Isolated
• Craftsmanship
16. THE NEW API PLATFORM HAS BEEN A SUCCESS
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Customer Application: eBay PayPal Web Web Page
Application
APIs: /v1/apis/applications
Mobile Application
Third-party Web Application
Mobile Application (based on mSDK)
Touch
Samsung Wallet (Samsung Galaxy S5, Gear 2, Gear Fit)
oauth2/token, tokens, /v1//v1/payments/vault/wallet/{wallet/payments/payments
token
user-activities
payment
payment
id}/financial-instruments
17. PAYPAL CONTEXT
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– 157 million active digital wallets
– 203 markets in 100 currencies
– 2M+ developers
– 2013: Total Payment Volume was $180 billion
– Q3 2014
– Total Payment Volume of $56.6 Billion, $7118 TPV / second
– $12 Billion mobile
– Growing 29% YoY
– 895 million transactions, 9.7 million payments / day
– 2014: >1 Billion Mobile Transactions in 2014
– 25% cross border
In a dynamic environment
– 300+ features per quarter
– We roll 100,000+ lines of code every two weeks
18. TO CLOSE
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• History of payments is as old as human history
• Payment needs are the same, though technologies have evolved
• PayPal has been enabling simple and secure payments
• The API platform has evolved to support these products …
• As well as what the future of money needs!
Introduce myself – joined PayPal 2.5 years ago.
Hard to talk about how payments and PayPal’s API platform have evolved without looking into the history of payments. I am going to play a brief video – 5 min on this topic.
With the move from bullion to fiat currency, and support for electronic communications, becoming possible. However, Compliance and regulatory requirements needs to be supported for information flows.
25% cross border trade. It is only increasing. Payments should abstract all complexities in a payer sending money in payee’s preferred currency. Complexities includes conversion, compliance needs, etc.
Takes many days for bank or credit card payments to settle. Need for faster settlement to reduce fraud.
Security in payments is well known. Several new innovative payments have not grown because of this.
Cost should be low. Enables micropayments or micro commerce.
One of the earliest PayPal’s product. Checkout buttons.
Mobile Checkout
Offline and online experiences are more integrated – Search offline, Buy online, Pick up offline.
Offline Point of Sale terminals. Phone number and PIN.
Bar code scanner/QR code.
Debit card in case nothing works.
Take photo of the card
Enter number manually
Making a payment without having to use your wallet
Consumer experience
Merchant experience
PayPal embedded into devices – Galaxy S5, Gear, Fit
Fast Identity Online. Interoperability between authentication technologies.
Flexibility in device used for payments
First application
VC beamed money from their palm pilot to founders
Send and request money from mobile wallet
As social networks grow, P2P interactions are becoming easier
Adhoc payments is another place sending money used
Enables more use case scenarios like sending gifts, etc.
Arduino - Hardware board. With Temboo which enables calls to several APIs uniformly.
As many companies expose APIs and using common standards (REST), API aggregators becoming common. PayPal has to be present there.
Example of long tail integrations which needs access to payment capabilities
We covered all the products
Wii gaming console, TV
PayPal API
PayPal Capabilities – Only a small subset is exposed to these integrations
Consumer preferences have changed. Mobile, Local, Social, Digital.
Players in the ecosystem changed. Competitors. Partners.
Technologies have evolved. More leverage than build.
S-curve