boosting consumer engagement at paypal
TRANSCRIPT
Boosting Consumer Engagement at PayPal
Sujit Mathew, Goh Yew Yap, Chen Yanhui
PayPal
©2015 PayPal Inc. Confidential and proprietary.
Two decades ago, our founders invented payment technology to make buying and selling faster, safer, and easier—and put economic power where it belongs: In the hands of people.
©2015 PayPal Inc. Confidential and proprietary.
Mass Adoption of Mobile Devices
Digitization of Cash
Transformation of Cards
Fragmentation of Payment Types, Technology and
Channels
Rise of Fraud and Cybercrime
Money is
changing
PayPal is leading the transformation
©2015 PayPal Inc. Confidential and proprietary.
AT SCALE*
173 Million Customers**
$235 Billion TPV
$8 Billion Revenue
4 Billion Transactions
WITH MOMENTUM
+19 Million Customers Gained in 2014
+26% y/y TPV Growth
+22% y/y Transaction Growth
*Stats are full year 2014, unless otherwise noted. **Stat is Q3 2015
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PayPal processed $46 billion in mobile payment volume in 2014,
up 68% over 2013.
In 2014, 20% of PayPal’s net Total Payment Volume was
from mobile payments.
Venmo processed $2.4B in Total Payment Volume in 2014.
In Q3 2015 Venmo’s Payment Volume was $2.11 billion – up 201% year over year.
In 2014, PayPal and Venmo combined handled billions in P2P payment volume globally and nearly half of that volume was international.
A leader in
person-person payments
Use Case
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“Boost consumer engagement by recommending merchants and products to
consumers.”
©2015 PayPal Inc. Confiden4al and proprietary.
66 Million individual payments processed for chari4es via PayPal.
36 Million consumers used PayPal to make a payment to a charity.
13% of dona4ons through PayPal in 2014 were made on a mobile device.
418,000 chari4es used PayPal to accept dona4ons.
$5.7 Billion processed for chari4es by PayPal.
65% YoY growth in PayPal’s total mobile payment value to chari4es globally.
Bridging Consumers and Charities
*Stats are PayPal full year 2014 reports
Modeling
Overview
Stack
Graph
Collaborative Filtering
Content Model
Deployment
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Technology Stack
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Hadoop / MapReduce
Mahout Pig
Python / Shell
HDFS Cassandra
Titan
Gremlin
Graph Modeling
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Build Property Graph Based on P2P transaction data.
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Discover Communities within P2P Data
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Discover Key Influencers
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Eigenvector Centrality
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Property Graphs
G = (V , E , λ)
V = vertices E = Edges λ = Properties
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© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Property Graphs
17
User Type Age Influence Score
Charity Type Name
g.V[[type:"Charity"]] .inE("Donate") .filter{it.getProperty('Amount') > 25} .outV.filter{it.getProperty('Influence') > 0.5}
Amount
Recommend
Enrich the graph with Donations and Social data.
Key Interests within group
Charity
Send
Find all Key influencers who have donated more than 25 USD to the charity
Collaborative Filtering
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Collaborative Filtering 101
19
Commerce Interaction Matrix
We want to model the affinity between consumers and merchants
More transactions occurred, more confident we believe the relationship
Consumer
nonprofits
Likeness Matrix
Confidence Matrix
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Collaborative Filtering 101 A matrix factorization method
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Data Fitting Regularization
Merchant
nonprofits
C
onsu
mer
C
onsu
mer
d
d
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Alternative Least Square
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Iteratively update Fix V and update U: Fix U and update V:
Regularization Data Fitting
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Scalable Collaborative Filtering Improve the scalability of ALS
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Shard 1 Shard 2 Shard 3 Consumer
Merchant
Commerce Interaction Matrix
Mapreduce Job for Shard 1
Mapreduce Job for Shard 2
Mapreduce Job for Shard 3
Stage 1: Compute the individual contributions of each rating
Stage 2: Aggregate all contributions for every user and update their models in parallel
Reference: http://www.slideshare.net/jekky_yiqun/scalable-collaborative-filtering-for-commerce-recommendation
Global MapReduce Job for ALS
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
What does CF Learn?
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03.05.015.09.02.11.03.001.001.03.12.07.0
VUT
Each vector of U model a consumer by d implicit attributes
Each vector of V model a merchant by d implicit attributes
Score = UiT . Vj = 1.162
Content Model
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Data & Feature Dictionary cust_id string age range [10:20:30:40:50:] gender categorical [M,F,U] country categorical [NP, IN, CN] spend numeric nonprofits label
Cust ID Age … Gender Country Spend nonprofits
1 28 M NP 10.5 1
2 35 F CN 100 2
3 30 M IN 25.1 1
4 34 F IN 15 3
5 32 M IN 5 4
6 25 F IN 22.5 1
3 30 M IN 12 3
3 30 M IN 1 2
Feature Dictionary Dataset
Name
Type
Values
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Training the model
Data Source
Featurizer
Business Logic
Feature Dictionary
Other resources
Features Learner Predictive Models
ML Algorithm
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Logistic Regression
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Recurrent Neural Network - LSTM
Source: http://colah.github.io/posts/2015-08-Understanding-LSTMs/
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Combining the result
Teradata & HDFS
Interaction Matrix
Features
CF Model
Content Model
Hybrid Result
CF Engine
Ensemble
…
Deployment
• Emails, Web, Mobile Applications
• REST APIs Platform
• ML Models Data Science
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
REST API
The recommendations will
be stored.
MODEL
The recommendations will be generated
and uploaded.
FRONT-END WEB will query for
recommendations
Recommendations of respective
customer will be returned.
Web Emails Mobile Offers
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Wrap Up
• Approaches to modeling – Graph Model – CF Model – Content Model
• Deployment of models
Thank You
Sujit Mathew, Goh Yew Yap, Chen Yanhui