1. fraud protection
1.1. Lex Bayer
1.1.1. friendly fraud
1.1.1.1. users wanting to return goods after using it
1.1.1.2. assign each user a score
1.1.1.2.1. # of payments
1.1.1.2.2. # of refunds
1.1.1.2.3. developers use it to decide if they want to make a deal with the user or not
1.1.2. sinister fraud
1.1.2.1. people trying to game the system
1.1.2.1.1. e.g. fake credit cards
1.1.2.2. alerts using social graph
1.1.2.2.1. fake user profiles (no friends etc)
1.2. Tim Bachmann
1.2.1. no issues with prepaid cards
1.2.1.1. you get paid immediately at the point of sale
1.3. Gene Hoffman
1.3.1. lots of fraud management tools were created for high margin, big ticket items
1.3.2. you are hurting yourself turning customers away as false positives as there is low/zero cost to producing virtual goods
1.3.3. chargeback budget is e.g. %1 --> if you take away the really bad guys, this is as much you can be more aggressive in selling
1.3.4. vgoods may be by fraudsters to test if stolen credit cards are valid
1.3.4.1. due to the low item prices
1.3.4.2. game operator ends up with a lot of chargebacks
1.3.5. what do about e.g. Eastern Europe
1.3.5.1. A/B test and see what happens
1.3.5.1.1. 15 day cycle to see results
1.3.5.2. rise of botnets make geographic IP blocking ineffective
1.4. David Marcus
1.4.1. mostly seeing "friendly fraud"
1.4.2. do pattern analysis to detect suspicious transactions
1.4.3. hard to do fraud thru mobile
1.5. Christian DeBaun
1.5.1. agreed with the other panelists
1.5.2. PayPal & fraud is a big issue
1.5.2.1. too much of it --> PayPal penalty box with money sitting there for 6 months
1.5.3. offer local payment solutions instead of credit cards for high-risk countries
2. prepaid cards
2.1. Christian DeBaun
2.1.1. especially important to tween and teen audience
2.1.1.1. credit cards not available
2.1.1.2. limits payments to allowance money
2.2. Tim Bachmann
2.2.1. lots of benefits to extending brand reach to retail
2.2.1.1. stamp of approval from the big box retails to parents
2.2.1.2. awareness for the app
2.2.2. if you can master in-store marketing, you increase impulse buys a lot
2.2.2.1. e.g. in store video, point of sale displays
2.3. Gene Hoffman
2.3.1. sales taxes apply also to intangible goods
2.3.1.1. some states collect it point of sale, but e.g. Texas collects it card redemption
2.3.1.1.1. i.e. you might need to be paying taxes on prepaid cards instead of the retailer
2.4. Lex Bayer
2.4.1. cards under $5 don't make sense due to fees (e.g. retailer's cut)
2.4.2. users just want to be playing, so remove the friction from paying
2.5. David Marcus
2.5.1. 82% of people end up using mobile to pay
2.5.1.1. when offered standard credit card, mobile and paypal payment options
3. Additional services for developers
3.1. Lex Bayer
3.1.1. have a network of paying users at SocNets
3.1.1.1. can be shared across different apps
3.1.2. customer support
3.1.2.1. when you start taking money, you need to
3.2. Gene Hoffman
3.2.1. have a Professional marketing services organization
3.2.2. Vindicia charges 2% at scale
3.2.2.1. expect to help the developers
3.2.2.1.1. messaging
3.2.2.1.2. fraud management
3.2.2.1.3. what payments to whom and how
3.3. Tim Bachmann
3.3.1. full service solution for prepaid cards
3.3.2. feed back data on what is selling, competitive situation, pricing
3.4. David Marcus
3.4.1. user experience team to help developers
3.4.1.1. e.g. to create mockups for mobile payments
3.5. Christian DeBaun
3.5.1. pretty close to offering a turn key solution
3.5.2. 240 different countries, 70 different payment types
3.5.2.1. don't do credit card
3.5.3. prepaid card at 16000 retailers nationwide
3.5.4. fraud management
4. Q&A
4.1. will there be an universal prepaid card
4.1.1. Christian DeBaun
4.1.1.1. PayByCash has single card that can be used by all of their partners
4.1.2. Gene Hoffman
4.1.2.1. Won't see in the US due to highly competitive situation
4.2. how to deal with international currencies
4.2.1. Gene Hoffman
4.2.1.1. try to keep each currency separate
4.2.1.1.1. e.g. if a customer pays in euros, the chargeback should be in euros
4.2.1.2. set up tools to monitor currency exchange rates and update your prices correspondingly
4.3. what will be the impact of economic downturn on virtual goods?
4.3.1. gene hoffman
4.3.1.1. limited impact
4.3.2. Tim Bachmann
4.3.2.1. opportunity for vgoods
4.3.3. David Marcus
4.3.3.1. opportunity for vgoods
4.3.4. Christian DeBaun
4.3.4.1. limited impact
4.3.5. Lex Bayer
4.3.5.1. unclear
5. Panelists
5.1. Lex Bayer, Spare Change Payments
5.1.1. Founder & CEO
5.1.2. solely focused on SocNets
5.2. Christian DeBaun, PayByCash
5.2.1. Director of business development
5.2.2. managing the Ultimate Card prepaid card
5.3. Gene Hoffman, Vindicia
5.3.1. Chairman and Ceo
5.3.2. billing, fraud & chargeback management
5.3.3. handle e.g. all Norton AV products, lots of MMOs, IMVUs, Outspark etc
5.4. David Marcus, Echovox
5.4.1. CEO
5.4.2. Zong - a mobile payment solution
5.4.2.1. SocNets and Mobile apps
5.5. Paul Thind, Sulake
5.5.1. GM North America
5.5.2. Moderator
5.6. Tim Bachmann
5.6.1. president
5.6.2. branded prepaid cards
5.6.3. previously head at Target for cards
5.6.3.1. launched iTunes card
6. any criteria for apps they'd look at seriously?
6.1. Tim Bachmann
6.1.1. criteria is not only # of users, but about user's commitment level & desirability of items
6.1.2. some retailers want to work with growing sites and get their brand in there
6.1.3. a new category to retail buyers
6.1.4. shelfspace is valuable
6.1.4.1. prepaid cards are great as they have high value, no carrying cost etc
6.1.5. larger purchases are doing well
6.1.5.1. example: 50 hour card = 80% sales, 20 hour card = 20% sales
6.2. Gene Hoffman
6.2.1. you can ask for higher monthly payments than WoW
6.2.2. you are perceived as per your price
6.2.3. lower the price if you can't make it work
7. best practices
7.1. David Marcus
7.1.1. miminize the effort/resistance to buy
7.1.1.1. it's an impulse buy
7.1.2. people are hesistant to use credit cards
7.1.2.1. mobile payments can overcome this
7.2. Lex Bayer
7.2.1. size of the game != monetization. it's about engagement, not just userbase
7.2.2. collection of items is appealing
7.2.2.1. females
7.2.3. competition stimulates purchase
7.2.3.1. males
7.3. Gene Hoffmann
7.3.1. upgrade paying customers into recurring payments / subscription
7.3.1.1. less fraud risk with bigger, less frequent payments
7.4. Tim Bachmann
7.4.1. try to mimic cycles of retail
7.4.1.1. holidays, graduation, father's day, summer peak
7.4.1.2. right now for X-Mas teaser campaigns, mail blasts --> add the retail card to your gift wish list
7.5. Christian DeBaun
7.5.1. target to monetize also international audience
7.5.1.1. don't have credit cards, won't use them
7.5.1.2. use an alternate payment provider to capture that money
8. US vs. International
8.1. Gene Hoffman
8.1.1. International
8.1.1.1. less credit card, more SMS
8.1.1.2. some countries have very different payment processing rules
8.1.1.2.1. e.g. in Brazil credit card payments need the customer to visit a bank physically to authorize it
8.1.2. cultural issues
8.1.2.1. toothpaste example
8.1.2.1.1. for US, position as "your breath will smell better"
8.1.2.1.2. for Asia, position as "your friends & family will like how your breath smells"
8.1.3. US
8.1.3.1. subscription works perhaps a bit better
8.2. David Marcus
8.2.1. International
8.2.1.1. mobile payments are very important
8.2.1.2. hard to monetize with ads
8.2.2. US carriers take a lot higher fee than e.g. Nordic countries
9. what payment options work best
9.1. Lex Bayer
9.1.1. the more payment methods, the better
9.1.2. microtransactions make it easy to sample the product, and ease customers in
9.2. Gene Hoffman
9.2.1. A/B test your payment methods
9.2.2. simplify the payment process to avoid customer frustration
9.2.3. tailor your payment pages to show the most relevant payment methods, campaigns, currencies etc
9.2.4. not every customer needs to get the same price for the same product
9.2.4.1. test, test, test!
9.2.5. don't stop at transaction, monitor chargebacks and fraud
9.3. Christian DeBaun
9.3.1. don't leaving building your billing in the last week
9.3.2. work with your bank, paypal, set up merchant accounts, look at the alternative payment providers and test it
9.4. Paul Thind
9.4.1. having mobile payments in US has been very helpful for Habbo