1. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. Can Security and Agility Co-Exist? Arizona Technology Summit 2014 Scott Carlson – PayPal – September 17, 2014

2. 2626 CURRENCIES SUPPORTED 152M ACTIVE REGISTERED ACCOUNTS 203 MARKETS OFFER PAYPAL 8080 LOCALIZED MARKETING SITES GLOBALLY EUROPEAN UNION EURO AUSTRALIAN DOLLAR CANADIAN DOLLAR NEW ZEALAND DOLLAR HUNGARIAN FORINT MALAYSIAN RINGGIT UNITED KINGDOM POUNDS STERLING HONG KONG DOLLAR UNITED STATES DOLLAR TAIWAN NEW DOLLAR CHINESE RMB SWEDISH KRONA SINGAPORE DOLLAR PHILIPPINE PESO BRAZILIAN REAL RUSSIAN RUBLE NORWEGIAN KRONE JAPANESE YEN MEXICAN PESO TURKISH LIRA SWISS FRANC CZECH KORUNA ISRAELI NEW SHEKEL DANISH KRONE THAI BAHT POLISH ZLOTY

3. $ 1.95B 850M $ 40.4B $ 14.7B 152M $ 55B Revenue Total 20% YoY Total Transactions Merchant Services Payment 35% YoY Volume Active Accounts Net Total Payment 29% YoY Volume Marketplaces Payment Q2 2014 Results

4. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. Compliant with PCI-DSS 2.0 Standards Compliant with local country regulations 4 Compliance Statement: http://www.visa.com/splisting/viewSPDetail.do?coName=PayPal

5. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 5 secure In safe custody or keeping assured; sure; certain; free from or not exposed to danger or harm; safe. agile quick and well-coordinated in movement; marked by an ability to think quickly; intellectual acuity http://www.dictionary.com

6. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 6 @ http://xkcd.com used with permission under Creative commons License

7. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. secure In safe custody or keeping assured; sure; certain; free from or not exposed to danger or harm; safe. 7 prevent Be patched, be compliant, be hardened, be layered, don’t let data leave your network detect Log it all; parse it all; sesame street logic; leave no stone unturned respond Quarantine; active defense; mitigate; high priority patches; bug fixes; block ports; kill data streams; sever connections

8. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 8 @ http://xkcd.com used with permission under Creative commons License “Cyber Attack” http://www.digitalattackmap.com

9. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 9 “Cyber Attack” http://www.digitalattackmap.com

10. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 10

11. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 11 http://hackmageddon.com/2014/07/07/june-2014-cyber-attacks-statistics/

12. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 12 http://www.geekherocomic.comhttp://www.geekherocomic.com used with permission under Creative commons License

13. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. agile quick and well-coordinated in movement; marked by an ability to think quickly; intellectual acuity 13 wash Consider everything dirty; examine it; spray the bad parts; clean it; use machines to do the dirty work rinse Run traffic over it; verify assumptions; send it back to the wash if needed; deliver to customer; use it yourself repeat Check you work; check new versions; talk to new people; find all of the new and exciting ways people are doing things

14. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 14 http://www.lynnecazaly.comhttp://www.lynnecazaly.com - used with permission

15. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 15 @ http://xkcd.com used with permission under Creative commons License

16. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 16 Compliant ≠ Secure

17. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 17 Agile ≠ Risky

18. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 18 Secure is not a permanent state

19. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 19 Security can not work effectively unless you have Agility

20. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 20 debate… decide…deliver secure

21. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. For more information, please contact: Scott Carlson @relaxed137 sccarlson@paypal.com