Payments giant PayPal has been offering online merchants the ability to use its Express Checkout service, which is a one-stop payment option streamlines the checkout process for consumers. A buyer does not have to reenter shipping, billing, or payment information for a PayPal payment, expediting the checkout process. All they need to do is enter their PayPal account login. It’s similar in theory to Amazon’s one click ordering option. And PayPal recently incorporated this for mobile payments as well. Today, PayPal is releasing an Ipsos Public Affairs reports that shows that incorporating the seamless payment offering has helped online merchants increase sales.
According to the report, eight in ten (83 percent) of PayPal merchants surveyed say Sales
have increased since offering Express Checkout. Among online merchants who are able to track their revenue, sales have increased an average of 18 percent since adding the Express Checkout service. Eight in ten (84 percent) of those who noticed an increase in sales say it happened within the first 3 months after offering PayPal. Others say it took four to six months (8 percent) or longer (8 percent) before they noticed an increase in sales.
Since offering PayPal, merchants claim that 22 percent of their total revenue comes from
PayPal’s Express Checkout. And 25 percent of revenue coming from new customers
is channeled through PayPal’s Express Checkout.
It’s important to note that this report is anecdotal and is by no means indicative of the sentiments and sales of all online merchants. But it does highlight an important trend: a seamless payments experience, whether it be online or via a mobile device, is a contributing factor to an increase in sales. PayPal has been working to offer additional seamless payment options, including a Digital Goods product.
PayPal isn’t the only company to start making transactions easier for consumers and merchants. Google launched its own Google Checkout-powered digital goods payment option recently. And we know NFC technologies on mobile phones are picking up steam.