Payment Methods

PayPal Checkout Has Conversion Rate Of 88.7 Percent

A new study has found that PayPal checkout converts at 88.7 percent – 82 percent higher than a checkout without PayPal, including other digital wallets and cards.

The comScore study compared online conversion rates for PayPal and other payment methods based on the checkout options available for 20 merchants across industries.

"Conversion is measured starting when a user clicks on a payment type to when they complete the transaction/purchase within the same browsing session," the study explained.

The data showed that other digital wallets measured in the study had a combined checkout conversion average of 55.3 percent. And when comScore incorporated all payment types, they had a combined rate of 48.7 percent.

Other digital wallet payment types used in the study included express checkout methods, such as Visa Checkout, Masterpass, Amex Express Checkout, Chase Pay and Apple Pay. The study also included other payment types, including Visa, Mastercard, American Express, Discover, cash/check, private label store cards and any other available methods.

PayPal also released the findings of a new mobile-focused survey of consumers, which included that 52 percent of mobile customers made more online purchases/transactions because PayPal was offered as a checkout option.

"PayPal is unique in that it’s the only payments player that operates at scale, globally, on both the consumer and merchant side of the ecosystem, with the ability to deliver great end-to-end buying experiences," the company said in a statement. "Because of this, we’re able to offer experiences that others cannot, and we can do so oftentimes without requiring merchants to do any additional integration work."

For example, PayPal OneTouch enables consumers to check out across millions of merchants without having to enter any usernames, passwords, payment or shipping information. It is the fastest adopted product in PayPal’s history, with 92 million consumers using the service and 8.6 million merchants enabling it.

In fact, the study found that 55 percent of customers said they made more online purchases because of PayPal OneTouch.

"We are continually working to create and democratize the most seamless checkout experiences that enable consumers to quickly and securely get access to the things they want and need, and in turn drive sales for merchants," added the company.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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