PayPal Dominating Payments
PayPal customers are completing purchases at a higher rate than all other competitors, according to new data from comScore.
“This comScore study shows that shoppers are completing their purchases with PayPal, at almost twice the rate of legacy systems,” said Bill Ready, senior vice president of product and engineering, PayPal. “As more commerce moves to mobile, having an easy way to checkout moves from a nice-to-have to a must-have. Last quarter, our customers made more than 15 million transactions a day on the PayPal platform, with 28 percent of them from mobile devices.”
PayPal customers made 15 million transactions per day on the PayPal platform, according to a company press release. And the firm’s completion rate — defined here as any user who does not switch payment methods during the checkout process — is higher than that of its peers. PayPal users are completing purchases 87.5 percent of the time, compared to 55.1 percent of the time for Visa Checkout users and 46.5 percent for users of other platforms.
PayPal OneTouch, the firm’s one-click payment product, is on the rise. In December, OneTouch counted over 10 million users from 23 countries. That number is now at 21 million customers in 203 markets. And it still has considerable room to grow — OneTouch users only comprise roughly 7.5 percent of PayPal’s 179 million total customers.
As a larger share of PayPal customers use OneTouch, conversion rates will likely increase. Buy buttons make online and mobile purchasing simpler by allowing users to skip friction-filled steps associated with online purchasing, like entering shipping and billing information. As more PayPal users begin using the simpler OneTouch platform, it’s plausible that conversion rate could rise even higher.