PayPal already boasts high checkout conversion with its simple user interface. A recent comScore study found that PayPal Checkout converted at 88.7 percent during checkout, that is 82 percent higher than a checkout without PayPal.
Recently, the company announced changes to make it even easier for customers to checkout and reduce shopping cart abandonment. A key component of this new and easier checkout is the new PayPal Checkout with Smart Payment Buttons™.
Smart Payment Buttons are checkout buttons that dynamically present the most relevant payment methods for each customer in each geography. This gives online merchants the ability to offer all the best ways to pay without cluttering the checkout page.
Smart Payment Buttons include:
- PayPal with One Touch checkout: One Touch is PayPal’s mobile and online checkout tool that enables customers to check out across millions of businesses without having to enter any usernames, passwords, payment or shipping information (one-time opt-in is required on the first use). One Touch is the most rapidly adopted product in PayPal’s history, and today, more than 96 million consumers have opted into One Touch and more than 9 million businesses (and 79% of the Internet Retailer 100) have enabled One Touch. A recent comScore survey showed that 55 percent of customers said they made more online purchases because of One Touch.
- Pay with Venmo: PayPal Checkout, along with Braintree Direct (a PayPal company), is the only place where businesses in the U.S. can offer Venmo as a payment method and reach millions of younger shoppers. Venmo has traditionally appealed to a younger user even so it offers many of the same features as PayPal’s wallet. Businesses who target a younger demographic will benefit significantly by offering Venmo as a payment method.
- PayPal Credit: PayPal Checkout, again along with Braintree Direct, is the only place where businesses can offer PayPal Credit. PayPal may have sold its consumer credit portfolio to Synchrony, but the service is not dying. Synchrony manages a lot of custom credit programs for brands, therefore the expansion of this payment method is likely going to rise. PayPal provided another recent comScore study that found up to 53 percent of shoppers would not have made all of their purchases if PayPal Credit was not available. And on average, 21 percent of shoppers spent more online than they would have without PayPal Credit.
- Local Alternative Payment Methods: Smart Payment Buttons also enable businesses to accept more payment types, including local wallets and funding sources, that are dynamically presented based on the shopper’s geographic region.In addition, to the already enabled SEPA Direct Debit for our customers in Germany, PayPal plans to enable the following international wallets and funding sources before the holiday season:
- iDEAL for customers in the Netherlands
- Bancontact for customers in Belgium
- MyBank for customers in Italy
- Giropay for customers in Germany
Infographic Highlights All New Services
PayPal produced an infographic to show all the new services and features it is now offering:
And the company produced a YouTube video to briefly intro some of the new features:
Building a Future Without eBay
All of these improvements are a clear sign the company is working to build a future less reliant on eBay.
While PayPal continues to publicly claim they do not expect a huge drop off from losing the tight integration with eBay, that seems a bit far-fetched and probably even most Wall Street analysts believe the company has to find replacement revenue sources.
READ MORE: PayPal in Denial of eBay Payment Intentions?
But eBay’s new eBay Payments is off to a rough start with a beta program that effectively makes it a no-go for most sellers.
This should buy PayPal a little time as there doesn’t appear to be a rush by eBay sellers to try eBay Payments and sellers overwhelming seem to prefer to stick with PayPal.
Of course, all the new features will really help those small business merchants that are running their own web stores.
What are your thoughts on the direction Paypal is taking and the new features it is offering for an even faster checkout? Head over to our Facebook Discussion Group or use the comments section below.