1. PayPal and Other Third Party Payment Options Presented by Meg Monsen, Eric Zeng, and Michael Leonard

2. 2 PayPal and Alternatives 3 User Profile 4 Pros and Cons of Third Party Payment Processors Agenda 1 Introduction 5 Review Fee Structure 6 Acquiring Customer End Base 7 Further Considerations 8 PayPal and 2Checkout Demonstrations

3. Third Party Processors Emergence of E-Commerce Introduction Security and liability History of PayPal

6. PayPal Google Wallet Groupon Apple Passbook the others on avg. % of respondents who have used the following mobile payment services PayPal still way ahead of the Digital Wallet Competition 79% 40% 20% 17% ~5%

7. Third Party Payment Providers most popular Payment gateways Authorize.net 2Checkout Google Wallet PayPal Amazon

8. Owners of E- Commerce Businesses Small Businesses User Profile ●In most countries, PayPal won’t accept transactions over $10,000 ●Transactions not covered by Purchase Protection When To Not UseDevelop In-House? ●If you have the resources ●However, there are so many different payment processors out there!

9. PayPal Pros & Cons Cost Business Account is FROZEN Easy Popular Convenience Pros Cons

10. A B C D E A Customer pays through online gateway BPayment info passed from gateway to processor C Processor to association D Association to issuing bank Credit Card Processing Online

11. Tiered / Blended High transactional costs - Fixed amount - Flat transaction % Interchange fees included in quoted rate Low flat fees, varying incidentals Subscription / Membership Low transactional costs, generally fixed only High monthly fee based on dollar limit Ideal for large transaction type business Interchange Plus Low transactional costs + interchange fees - Vary by industry and credit card association Monthly fee of $10 to $30 generally assessed Lower but less predictable pricing Fee Structure

12. 1 2 3 Ways to use PayPal Pay onlineSend MoneyGet Paid

13. How PayPal Works Choose who to pay Decide how to pay Payment Sent ●Select PayPal when checking out at Online store worldwide ●Use PayPal to send money to friends across town ●Pay directly from your PayPal balance or linked bank account ●Charge it to your credit Card ●Stay safer ●Keep track of all your transactions on PayPal

14. ●Over 179 Million Accounts ●190 Countires ●26 currencies ●1000s of merchants add PayPal every year PayPal Growth ●Secure ●Simple ●Fast PayPal is: Drivers of Consumer Demand For PayPal PayPal Growth ➢ PayPal Helps Bring you New Customers

15. PayPal’s Benefit to Buyers/Sellers Buyers ●Secure transactions ●Pay with flexibility ●Save time ●International shopping Sellers ●Sell with more savvy ●Sell with ease ●Sell with confidenct ●Accepte debit and credit cards ●Get fast access to your money Benefits

16. Considerations for Choosing a Third Party Payment Processor SECURITY What is the processor’s reputation for safeguarding against fraud? CREDIT AND LIABILITY Who will bear the cost of fraudulent activity when goods are delivered on an unauthorized transaction? USER AUTHENTICATION Should users be required to complete an additional account login for payment? FOREIGN CURRENCIES What currency options does the provider offer?

17. Accessing payment networks Product theft Identity Theft ChargeBacks Fraud

18. Demonstrations PayPal: http://yorktown.cbe.wwu.edu/students/151/monsenm/BookStoreProject/index.phphttp://yorktown.cbe.wwu.edu/students/151/monsenm/BookStoreProject/index.php 2Checkout: https://www.2checkout.com/demo#/shophttps://www.2checkout.com/demo#/shop

20. THANK YOU Any questions?