as an unhappy choice between a longtime politician with no plan for the future and a billionaire with no government experience. well, let me tell you my story. my husband and i came here as newlyweds. we raised our family here and the california dream came true for me in ways i could never have imagined. now i'm running for governor to restore the california dream for everyone. i'm not a career politician or a hollywood star. i'm from silicon valley, where i created thousands of jobs at ebay. as governor, i'll do something that's been missing from california politics for far too long. i'll treat you like grownups, tell it to you straight, and offer a practical plan forward. these are scary times and i know that cleaning up sacramento won't be easy. our problems are tough, but so am i. if you want more of the same from sacramento, then vote for my opponent. but if you want to get california moving again, i'm ready. are you?

paypal wants to buy you lunch, and everything else. paypal president scott thompson tries to replace the cash and credit cards in your wallet. plus, power. how to get it, and how to keep it. author and stanford business professor jeffrey pfeffer explains why just working hard won't get you to the top. our reporters kym mi s kym and jon ft. this week on "press: here." if you would like to buy an old tea set on ebay, you can use paypal. it has been around for years

online. now it wants out. out into the real world. in a way, paypal is a great barometer of what's going on. back when we first went online. first to market on an easy way to make purchases on computer. now, many of us carry our computers around with us, in the form of a cell phone. paypal coming along for the ride with a variety of products and partnerships that allow you, the consumer, to pay for the real-world items with a paypal account. >> paypal is really convenient way to pay. and so as much of the world sort of makes this trab significance from offline to online it makes them seize paypal payments to order pizza. >> tap or text or e-mail the store owner your information, and the funds to pay for your salad are deducted from your paypal account. we've become a cashless society, but it's not cash that paypal is

looking to replace. it's credit cards. the lucrative transaction fees charged by visa and master card are worth billions. scott thompson is president of paypal. previous to that, he was executive vice president in charge of global technology for visa. he joins us on the cusp of paypal's big developer's conference. joining us is kym mcnichols and jon fort of cnbc. before we get started, so everyone tuning in understand, paypal has been around for years and years. explain your elevator explanation as to what paypal does for people? >> we allow you to safely and securely transact online. so whether it's ebay or off ebay in the united states or 189 other countries around the world if you want to do something online that involves a transfer of money, that's paypal. >> by signing up on a website, entering some sort of link to a bank account or credit card --

>> exactly. >> and then essentially e-mailing money. >> that's exactly it. >> are you now trying to get out into the real world. nobody would think of buying an apple pie with paypal. an apple mac maybe, but not an apple pie. >> i think the real world is actually tugging us there, because of the transition that's happening. online, what we know is online is quickly becoming offline. so the devices you interact with in a retail store, those historically haven't been online interactions. but we will see big and small retailers in this country and around the world, in what used to be a simple offline transaction is migrating on, so that's perfect for us. >> why can't visa and master card do it on their own? why do we need paypal? >> our thing really is security, protection. once your financial information is inside your paypal account,

we don't share it with anybody. literally. we don't even share it with our sister company, ebay, we feel that strongly about protecting your financial identity. >> go ahead. >> you and i have the same objection. visa and master card are very secure. they are trustworthy names. >> absolutely. i mean, they -- they have policies that -- that allow you if there's any problem at all, to not be liable for those transactions. those protection policies have been around for a long time. our thing is we also offer those same level of protections, but we spend all of our effort, all of our time, really, 95% of the focus is to keep you, the consumer, from ever having a problem that you don't want to have. >> now, aren't you a credit card company without the credit card, though? online hardly has any meaning anymore. inside an apple store, folks carrying around ipod touches to check you out. i can use the paypal app on my iphone send my friend birthday

money, and visa and master card, they have to ping up to somewhere to verify credit card information anyway. that's sort of online, though not the internet in the traditional sense. aren't you just a credit card company, perhaps more technology enabled? >> no, no, no. we really are your wallet. so inside of your paypal account, put anything that you have in your life. credit card, a debit card, bank account information, prepaid cards, whatever it is, that you use to transact offline and online, put that in your wallet, all there for you, all secure and then as you transact, pick the method. we call it a funding method you want to use from that array of things in your wallet. so that choice that we offer that broad choice of whatever fits into your life for that transaction is completely different than the credit card model. because you're tied to one device with that model. as compared to ours. very flexible. >> if i buy something with visa, and not that i'm dissatisfied

with the product, although returns are important, but something happens. i know i can go to visa and say here's my side of the story. this is the transaction, here is what happened. i don't believe this was a fair transaction, et cetera. and i'm going to get somebody on the phone. it may take press 1, press 7, press 8, but eventually i'll get a person to talk to. is that true of paypal? can i talk to paypal and say i need you to stop those funds? >> it's already true. it's true in every country we operate in. we not only have people who pick up the phone who will understand what the account is, that you're calling about. they will speak your language. know the transaction that you're referring to. they will know the domestic rules in that marketplace. they will be able to help you at that moment on all around the world. 190 countries, if you have any problem with any transaction. and our protection policy for consumers, we call it buyer protection, is equal to what you would get from the banks, from the card companies, all around the world. so that same problem you just described, if you called up and talked to a paypal person, they

would immediately take care of that. >> ultimately, the money is coming from somewhere. if you are using that visa card, i would assume you could still use that transaction, even if you use visa. >> you would call the bank and say i used this card inside the paypal wallet. there is some question or problem with it. i think in most cases, customers actually call us first because they realize i get protection from paypal and they'll do the right thing, but you have recourse if you chose to call your bank. >> go ahead. >> a lot of layers coming on torch the old credit card model, not to say you're a layer on the old credit card model. have you itunes, talking about how many millions of accounts they have on file, making payments more seamless. why is your model better for the digital age? for the way commerce is moving, than the older models with debit cards and credit cards than we've had in the past? >> i'll go back to what i said

earlier. this security thing is a really big deal. a big deal for consumers in this country and a big deal for consumers around the world. we talk to thousands of our customers every month. literally and we say what do you want from us? but more importantly, why do you use paypal for those transactions? and we hear a chorus of the same thing and that is i use you because i understand you protect me from bad things that could otherwise happen. and in this country we hear that loud and clear from 50% of the population from our most active customers. >> everybody says that, and i don't feel particularly unsecure using my credit card. is there something on the merchant side, even with the transaction fees you charge compared to what the credit card companies charge? if there is a security problem, i will go yell about it and somebody will go fix it. and otherwise there will be a class action suit. >> i can't talk about that. but your comment expresses why we're growing so fast. because the consumers in this

country and around the world say i don't want to have a problem. i've had them before, it's happened too frequently. i don't want to have a problem, and i know you will keep me from that. let me explain the reason why. our model is completely different. you pull it all apart and look how funds moe in the system, it's completely different. when you have a card, any type of card, what are you actually doing is you are giving the credentials of that card to the merchant, saying later on today, pull this money out of my account. so that's a classic legacy pull model for how the money moves. in paypal when you get redistricted to our site and put in your password, what you're telling us is move the money to this other person, this other merchant on my behalf. the idea that credentials are shared if somebody can open up your account and take money, it can't happen with paypal. we push the money everywhere. the fundamental difference is push versus pull, that's a big difference. >> we'll find out what's in it

for the retailer. scott thompson, president of paypal, back in a minute. our points from chase sapphire preferred are worth 25% more on travel. we're like forget florida, we're going on a safari. so we're on the serengeti, and seth finds a really big bone. we're talking huge. they dig it up, put it in the natural history museum and we get to name it. sethasauraus. really. your points from chase sapphire preferred are worth 25% more on travel? means better vacations. that's incredible. believe it...with chase sapphire preferred your points are worth 25% more on travel when booked through ultimate rewards.

a reminder as we get back to our conversation on "press: he here." you can participate on presshere tv.com. what do you get out of it? >> our value proposition to the merchant is equally as compelling as it is to the consumer. incremental sales at an equal to or lowest cost. the incremental sales, anybody who is selling anything on line, they are in business to sell stuff. that's the heart of why they do

business. incremental sales in our case comes about because there are 0 million active paypal customers around the world. so you're enabling people to pay at this merchant site that might not otherwise be able to. >> i mean the actual real-world merchant. the one who is saying i think i'll start taking paypal. what's in it for them? >> the offline -- >> brick-and-mortar. >> that's just now beginning. and what we're seeing is innovation on torch the paypal system. people who want to bring capability offline that's just in its early days, and i think it's going to be the exact same thing. i think it will be merchants get incremental sales at a slightly lower cost or cost equal to what they are paying today. >> that leads to micropayments. talk about micropayment strategy. there is a little extra charge for every single transaction that's made. so i'm wondering, what about if someone just wants to buy a song? that's a pretty expensive song

at that point. >> not for the consumer. they will only pay 99 cents or whatever. the person processing that transaction, if you have to pay the interchange rate on that, it becomes a very costly, expensive transaction. we've had specific micropayments pricing now for the last few years. it's different pricing and acknowledges these are small transactions. and so that's the -- the way we've gotten into the market. we intend to improve on that later on this year. we will introduce a new digital goods micropayment service that's going to really exaggerate -- >> why can't visa do that? take a look at the fact i don't buy the pack of gum with a visa because the merchant won't take it honestly. it's too expensive for him. at what point does visa say we need to be able to enable scott to use visa? >> for folks like apple with itunes -- >> there's true. ith sort of a one off.

in the real world, why can't visa see what you're doing and do some of it as well? >> i can't speak for them. i can only tell you what we're doing and what we think is important is if somebody wants to transact online or offline, and the transaction site is 25 cents, we have to make that profitable for everybody. we can't look at that as how much is that 25 cents can we take? we want to have very competitive for the merchant, for the consumerprice, regardless of the transaction size. >> is this farmville affect? is that why you are making this change? >> no, no, no. it's fascinating to see all of the transactions that come into the system and where they are coming from and what they are for. this is explosion of small transactions that's going on in the world. so here is a great example. in the world of publishing, so newspapers, magazines, blogs, and all that. if you are in that industry, what you want to do is get a

person who is a browsing customer today, a free customer, to be a paying customer. that first transaction could be a dime. literally 10 cents. how can i actually do that and leave something for myself if the interchange is some percentage plus a fixed fee which is added together more than 10 cents. >> have you ever been into one of those stores that says you can't use a credit card -- you have to pay at least $5. i can only imagine that will get worse at small businesses across the u.s. if they have to add that extra paypal layer to the mix. >> i think looking at that, that's one of our opportunities, and that is introduce the payment service we have online that has unique pricing for microtransactions. very, very small that works. much lower than the competition. the small tacoria.

if it is less than 3%, when the competitor might be well over 10%, you know -- >> it makes pressure effect sense. i think that is where the future is going. the ability to just say, hey, it's me, i'm here three times a week, and a transaction happens in the air, and everybody is happy with that transaction, i think that's where the money is going to be, but, again, i go back to is visa -- and i hate to pick on visa, but are the big guys so big that they can't come down and beat you? >> i don't -- again, i can't speak for what they are intending to do and what the issues are that they might be dealing with. all i know is we can process very, very small transactions, for merchants and consumers with a much more effective interchange rate and still be profitable. >> i mean, it's right there as a

risk. and they can potentially do it. >> on any of these things, we have competition from a number of angles, right? people watch us, what are we doing, how are we doing it. >> especially in mobile. you have a lot of competitors, up and coming competitors. >> we don't take anything for granted, because paypal has only been around 11 years. so from nothing in a very short period of time. this is a big business now. so we know it can be done. a few guys in a garage can do remarkable things very fast. >> scott thompson, president of paypal, thank you for being with us this morning. better hope your coworkers aren't watching this morning. up next, jeffrey pfeffer is going to show you how to get that promotion and raise instead of the other guy, when "press: here" conditions. so, we book a flight to hawaii using our points from chase sapphire. last minute... on christmas. and sitting next to us, chevy chase. and we really hit it off.

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here." your parents probably told you what my first told me on the first day of work. be politely and work hard. it's not bad advice. it may not be enough to climb to the top of the corporate ladder. in his new book named aptly "power" business professor jeffrey pfeffer argues hard work is not nearly enough to climb to the top. in fact, says pfeffer, confidence may not even be necessary to corner the corner office. and it turns out you can be too positi politely, particularly if you're a woman. writing in the "harvard business review," women who outnumber men on the college campus, sometimes fail at office politics when first joining the workforce, because they prefer to get along, and find compromise instead of grabbing power.

indeed, says pfeffer, powerful people like mark zuckerberg, head of facebook, or steve jobs, ceo of apple, tend to forget social niceties, not because they are bad people, but because of the way they view the world, and their special role in it. jeffrey pfeffer has taught at stanford since 1979. a visiting professor at harvard and the london school of business. joining us is kym mcnichols. jon fort had to run off and take care of other business. you wrote it pains me see talented people get left behind in a game in which they didn't know the rules. there is an oftentimes people do think that it's talent that can get them ahead, but not always. >> that's certainly correct. and that's the -- that really is the reason why i wrote this book. i think both men and women need

to understand the game they are playing, and they need to be able to opt in with the best information they can possibly have. >> so let's give people tangible advice. let's say i'm in the workplace. i ultimately -- i'm a worker bee and i want to become the ceo. what's the best advice you have for folks? give us your top three pieces of advice? >> the first piece of advice is build yourself a public relations strategy, even as a worker bee. >> what does that mean? >> i can tell you exactly. there are a couple of people i know. one in the u.s., one in brazil whether or not all did the same thing. they reached out to the media, even as relatively junior people, they reached out to the media, they wrote stories, they wrote blogs, they took the questions when the reporters called in. and their colleagues didn't want to be bothered talking to the reporters because it was too away from their central work, and one of them got put on the cover of a brazilian business magazine as one of the ten ceos of the future. is he, of course, now a ceo. and the other woman was able to

move to a large internet marketing company. >> i know you said have you three, and i'll let you get to the other two. that concept of branding has become very important. you have to be a brand, a kym mcnichols of "forbes" brand to stand out. >> and you have to do it yourself. >> that is completely correct. and my point is it is never too early to start. a lot of people say i'm going to have a pr strategy and i'll hire pr home or professional communications help when i become ceo. by the time are you ceo, you don't need the help anymore. you need it when you start early. get yourself coaching on communications, on how you present yourself and build -- begin building your brand immediately. that would be one very important practical thing for people to do right away. >> i had to give a keynote over at a startup conference. the one best piece of advice that i have for folks if they want to get more into the press is to take advantage of people's

blogs and the comments section. start building their expertise in the comments section. be up front in who you are. >> an authoritative name that people know. >> you don't have to have an article written all about you, but start getting your name out there in all of these different blogs that pretty much relate to the subject you're an expert in. >> kids in school that are you teaching in business school, the new generation, the kids these days, everything is egalitarian. we're going to crowd source. we're going to all get along and work together, and we're working together to question you. that's probably not the way to become ceo. >> that's certainly not the way to become ceo. there is this thing as you know. articles about how high schools now don't have single valedictorians anymore. they have multiple valedictorians. >> everyone gets a ribbon. everybody gets a ribbon in the swim meet. >> and everybody who joins an organization, particularly in the silicone valley, gets told we're not hierarchy.

weary gal t're egalitarian. there is only one ceo, only one school superintendent, only one governor of california and one senator. don't believe all this stuff. you have to be willing to compete and have to really build your competitive juices, and understand -- and i think people are too much one way or the other way. people say, you know, kym is my colleague, so i want to be helpful to her. yes, sometimes you do want to be helpful to her. but she's also your competitor, and you don't have to be all competitive or all cooperative, you have to play a mixed game. >> ironically, some of the great names, the abraham lincolns or the martin luther kings, as their biographies get written and rewritten, some of the ways in which they grabbed power or even the ceo of a silicone valley company, tend to be forgotten, well, they always had this talent and they always -- the negative of your story or your biois something you can learn from. >> absolutely.

and i think there are twoi issus there. almost everybody has overcome setbacks. people forget that the fact that willie brown -- more power of the ex-mhiex-mayor than most ma ever had. willie brown lost his first race for the legislature. lost the first time he ran for speaker of the california assembly. many people have overcome setbacks, and so resilience is a really important quality that we all need to build, and you should also -- biographies you can trust a little. autobiographies i wouldn't trust at all. those are all the stories that people want you to -- the truth that they want you to believe, knotted necessarily the real truth. >> what about women in particular in the workplace? what is the best advice have you from them that you would give them v them versus two men? >> that's a question that could take hours and days to answer. i'll give you the brief version.

if you read all of the research, you see two things. one as the setup suggested, there are many women who are disadvantaged. callous reports will show you women are not reaching the senior levels of organizations in nearly the proportion that they should, and so they -- the game is not quite fair, but if i had to give women advice and to boil down all of this research into one phrase, i would say you have to basically do what the men do. you have to be as tough as the member, as competitive of the men, and even though people won't like you when you do that, you have to get over that as well. >> and be aware that there is a game being played. >> absolutely. that is one of your points is that just be aware that the power game is being played. >> absolutely. and be willing -- and i think one of the reasons why people don't have as much power as they think they should or want to, they are not willing to make the tradeoffs that are involved. are you willing to be under a lot of public scrutiny. ceo of a public company there,

is no such thing as a private dinner. are you willing to put in the time and effort? i don't know anybody at a senior level -- at profits or nonprofits or university organizations who doesn't work a lot of hours. there is a tradeoff involved. >> one of my favorite things of having a tv show is doing this. we'll be back in just a moment. our points from chase sapphire preferred

are worth 25% more on travel. we're like forget florida, we're going on a safari. so we're on the serengeti, and seth finds a really big bone. we're talking huge. they dig it up, put it in the natural history museum and we get to name it. sethasauraus. really. your points from chase sapphire preferred are worth 25% more on travel? means better vacations. that's incredible. believe it...with chase sapphire preferred your points are worth 25% more on travel when booked through ultimate rewards. that's our show for this week. next week, the ceo of lonely planet joins us. thank you for making us part of your sunday morning.