How Spotify Payments Creates APIs to Manage Complexity

Spotify is one of the world leaders in media subscriptions and is the largest music streaming service with over 30 million paying subscribers. We currently provide 16 different methods of payment in over 60 countries and we continue to expand our offerings.

In this session we are going to talk about engineering an internal API to abstract away from the complexities of multiple payment gateways and multiple clients with potentially long release cycles (iOS, Android). I will share some of the benefits of growing the API organically, and some of the downfalls of premature abstraction.

Transcript

1. How we create APIs to manage complexity 1 Horia Jurcut horia@spotify.com Spotify Payments
2. History of Spotify
3. Credit Cards 2008 Finland France Norway Spain Sweden 2008 2006 Initial launch 2016
4. Credit Cards 2008 PayPal 2011 Finland France Norway Spain Sweden 2008 Austria Belgium Denmark Great Britain Switzerland The Netherlands USA 2011 2006 Initial launch Growth 2016
5. Credit Cards 2008 PayPal 2011 Finland France Norway Spain Sweden 2008 Austria Belgium Denmark Great Britain Switzerland The Netherlands USA 2011 2006 Initial launch Growth Boku Sofort Klarna Google iAP Facebook payments 2013 Argentina Australia Colombia Hong Kong Ireland Germany ... 2013 + 37 markets Global Company 2016
6. Credit Cards 2008 PayPal 2011 Finland France Norway Spain Sweden 2008 Austria Belgium Denmark Great Britain Switzerland The Netherlands USA 2011 2006 Initial launch Growth Boku Sofort Klarna Google iAP Facebook payments 2013 Argentina Australia Colombia Hong Kong Ireland Germany ... 2013 + 37 markets Global Company Adyen PaySafe Card Oxxo iDeal dotPay DragonPay SafetyPay DirectDebit Boleto iOS iAP 2015 Brazil Canada Philippines 2015 Localization 2016
7. Credit Cards 2008 PayPal 2011 Finland France Norway Spain Sweden 2008 Austria Belgium Denmark Great Britain Switzerland The Netherlands USA 2011 2006 Initial launch Growth Boku Sofort Klarna Google iAP Facebook payments 2013 Argentina Australia Colombia Hong Kong Ireland Germany ... 2013 + 37 markets Global Company Adyen PaySafe Card Oxxo iDeal dotPay DragonPay SafetyPay DirectDebit Boleto iOS iAP 2015 Localization Fortumo Doku econtext 2016 40 million subscribers 2016 Indonesia Japan 2016 60 markets 2016 Optimization Brazil Canada Philippines 2015
8. What are Payments?
9. Bank Users 1 Payments @ Spotify
10. Bank Users 1 Checkout Go to spotify.com 2 Payments @ Spotify
11. Bank Users 1 Checkout Go to spotify.com Validate card 2 Payment Backend Payments @ Spotify
12. Bank Users 1 Checkout Payment Provider Go to spotify.com Validate details Authorize payment 2 Payment Backend Payments @ Spotify
13. Bank Users 1 Checkout Payment Provider Credit Network Go to spotify.com Validate card Contact bank 2 Authorize payment Payment Backend Payments @ Spotify
14. Bank Users 1 Checkout Payment Provider Credit Network Go to spotify.com Validate card Valid card Contact bank Authorize payment Valid card 2 3 Payment Backend Payments @ Spotify
15. Bank Users 1 Checkout Payment Provider Credit Network Go to spotify.com Validate card Valid card Contact bank Authorize payment Valid card Access to Spotify Premium 2 3 Payment Backend Payments @ Spotify
16. Checkout Payment Provider Payments @ Spotify Payment Backend
17. Checkout Payments @ Spotify Payment Providers ... Payment Backend
18. Checkout Checkout API Payments @ Spotify Payment Providers ... Payment Backend
19. Checkout Checkout API Billing API Payments @ Spotify Payment Providers ... Payment Backend
20. Checkout API
21. Checkout API Payment Backend
22. Checkout API Payment Backend Clients
23. Checkout API Payment Backend Clients “What?” next steps
24. Checkout API Payment Backend Clients “How?” “What?” next steps send data send data send data send data
25. Checkout API Payment Backend Clients Checkout API “How?” “What?” send data send data send data send data next steps
26. CC Form CC Form Checkout API
27. Success CC Form Confirmation Checkout API CC Form
28. Success CC Form Tax Info CC Form Confirmation Tax Info Required in some countries Checkout API
29. Success CC Form Tax Info CC Form Confirmation Tax Info Required in some countries Payment Backend Checkout API Clients
30. Success Billing Address CC Form Tax Info CC Form Confirmation Tax Info Required in some countries Billing Address Payment Backend Checkout API Clients
31. Success Billing Address CC Form Tax Info Offer Code One Time Code X3G6D8A7 CC Form Confirmation Tax Info Required in some countries Billing Address Payment Backend Checkout API Clients
32. Checkout API Success Billing Address CC Form Tax Info Offer Code One Time Code X3G6D8A7 CC Form Confirmation Tax Info Required in some countries Billing Address Payment Backend Checkout API Clients
33. Checkout API Checkout API Start purchase What is the first step?
34. Checkout API Checkout API Start purchase What is the first step? Collect CC Information Display CC Form CC Form
35. Checkout API Checkout API Start purchase What is the first step? Collect CC Information Display CC Form CC Form CC Form Send credit card data Send credit card data
36. Checkout API Checkout API Start purchase What is the first step? Collect CC Information Display CC Form CC Form CC Form Confirmation Show Confirmation Display Confirmation Send credit card data Send credit card data
37. Checkout API Checkout API Start purchase What is the first step? Collect CC Information Display CC Form CC Form Send credit card data Send credit card data Confirmation Show Confirmation Display Confirmation CC Form One Time Code X3G6D8A7
38. Advantages Spotify Payments • Change checkout experience without client release • Clients can build native experiences • Consolidated business logic • Rapidly test, experiment and learn • Mix & Match
39. Billing API
40. Billing API Clients
41. Billing API Clients Checkout API
42. Billing API Payment Backend Clients Checkout API
43. Billing API Payment Backend Clients Checkout API Adyen PayPal Klarna Payment Providers
44. Billing API Payment Backend Clients Checkout API Adyen PayPal Klarna Billing API charge success Payment Providers
45. Billing API Payment Backend Clients Checkout API Adyen PayPal Klarna Billing API charge success Payment Providers Financial Data Settlement Reconciliation Callbacks Monitoring
46. Billing API Payment Backend Clients Checkout API Adyen PayPal Klarna Billing API charge success Payment Providers Financial Data Settlement Reconciliation Callbacks Monitoring
47. Automatic Alerts
48. Monitoring Billing API { "message": "payment_received", "provider": "adyen", "method": "cards", "amount: "9.99", "currency": "USD", "country": "US", "product_type": "premium", "duration:" 1, "duration_type": "month", "reference": "9107771201", } { "message": "payment_failed", "provider": "adyen", "method": "cards", "amount: "9.99", "currency": "USD", "country": "US", "product_type": "premium", "duration:" 1, "duration_type": "month", "reference": "9108771203", "failure_code": "399", }
49. Automatic Alerts Payment transactions processed (initial payments) Payment transactions failed (initial payments)
50. Automatic Alerts Payment transactions processed (initial payments) Payment transactions failed (initial payments) Broke initial payments
51. Automatic Alerts Payment transactions processed (initial payments) Payment transactions failed (initial payments) Broke initial payments Provider had an issue
52. Automatic Alerts Payment transactions processed (initial payments) Payment transactions failed (initial payments) Broke initial payments Provider had an issue Other providers continued working
53. Advantages Spotify Payments • Fairly low number of false positives • Works very well for high volume providers (Adyen) • Become more aware of local events
54. API Design
55. Why we build APIs Spotify Payments • Many clients, many providers • Integrate with other internal systems • More complex products and business rules • Customization
56. My time @ Spotify Spotify Payments • APIs make it easier for multiple teams to collaborate • APIs help you take a hard problem and divide it into more manageable domains • APIs require documentation • APIs enable you to rapidly test, experiment and learn
57. Tack. 57 Spotify Payments