Last week, I was given a task for one of our clients to research the benefits of adding a Paypal payment option to their website. I did a quick search and found some pretty impressive statistics.
According to Paypal’s website, PayPal Checkout conversion is, on average, 60 percent better than “other digital wallets” and 82 percent better than “all payment types combined.” In fact, checkout conversion can be up to 47 percent better for PayPal versus non-PayPal transactions. Paypal also cited a recent study in which 42 percent of online shoppers said that the types of payment options offered is a factor that influences them when deciding where to shop digitally. The same research found that, on average, PayPal customers complete their transactions 88.7 percent of the time.
Specific success stories mentioned on the Paypal website were BlockBuster Costumes (sales grew by 55 percent), CP Performance (sales grew 19 percent), and Air Beds Unlimited (sales grew 19 percent).
I also found a recent blog from a company called Volusion, that provides branding, marketing, and business strategy support to over 180,000 entrepreneurial clients, about the use of Paypal. They cited that during October of 2016, Volusion merchants with PayPal capabilities earned over 650 percent more in revenue than those without – amounting to $100,000 in sales versus $15,000. Additionally, roughly 25 percent of PayPal Credit users said they wouldn’t have made their most recent purchase if PayPal Credit wasn’t available, and nearly 40 percent of PayPal Credit users say they spent more online because of the financing. Volusion also cited that PayPal found PayPal Credit users’ transactions to be up to 68 percent larger than regular credit/debit purchases, making your payday potential even bigger.
As you can tell by these statistics, adding PayPal to an e-commerce website can dramatically improve its success. This was eye opening to me, and I really enjoyed the opportunity to research this topic and add value for one of our clients!
Insights Analyst Intern