P2P2004-CarnegieMellonUniversity.ppt

Electronic Payment Systems20-763  Lecture 12Peer-to-Peer Payments,Electronic Banking  Outline Peer-to-peer payments PayPal eC Electronic banking Aggregation, screen-scraping B2B payments Peer-to-Peer (P2P) Concepts P2P payments not involving a bank payments “directly” between payor and payee classic example: cash email payments, transfers between digital wallets purchasing online content micropayments Distinguish between P2P payments and P2P technology Napster, Gnutella Someday we may use P2P technology for P2P payments PayPal 40,000,000 accounts RTGS payment system Credit card hub Bookkeeping accounting system Low-value foreign exchange system PayPal Structure PayPal It’s a big disk drive! PayPal PayPal Concepts Merchants pay low fees; individuals pay nothing Interest paid on deposits Mass (bulk) payments possible Business model: fees + float FDIC pass-through insurance Against bankruptcy of PayPal Different protection for fraud Mobile payments supported PayPal Fees PayPal and Foreign Exchange PayPal Worldwide PayPal Statistics Average ticket (2003): $54 69% of payments auction-related Payment volume ~USD 15B/year Profit: ~230M/year, about 1.5% of volume Growth, payment volume (2002-2003): 68% Growth, number of users (2002-2003): 49% What would happen if PayPal could be used for everything? PayPal Concepts Merchants pay low fees; individuals pay nothing Interest paid on deposits Mass (bulk) payments Business model: fees + float Mobile payments possible What would happen if PayPal could be used for everything? Total PayPal Payment Volume PayPal Growth by Number of Users Email Payments Market E eBanking: an Integrated Activity Electronic Banking Opportunities Financial supply chain (FSC) Consumer marketing (statement has hyperlinks!) Data-rich environment Customized financial services relationship Moving toward fee for services instead of floats and spreads Greater security through digital signatures Risk reduction through speed Computer-initiated s