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Why PayPal’s New Personalized Checkout Option Changes the eCommerce Game Forever

Phillip Reinhardt

Checking out on eCommerce websites that utilize PayPal Merchant Services just got a whole lot easier. With the adoption of a new suite of personalized options, PayPal is raising the bar for organizations who provide merchant payment services. With an estimated $523 billion in online sales by the year 2020 and more than one-third of those sales coming via a mobile device, payments must be quick, easy — and frictionless. By rolling out new payment options, PayPal continues to expand their industry-leading eCommerce/mCommerce payment ecosystem.

The Growth of Mobile Commerce

It seems like only a few years ago that retailers were scrambling to create a cohesive presence on their website for eCommerce. Today, everything is accelerated and miniaturized to work on the much smaller screen of a mobile device. Every piece of content that a retailer adds to their site must have a purpose, as shoppers are easily distracted from completing their purchase. Each friction point must be filed down. A single additional click or difficulty logging into a secondary payment website may mean the difference between closing a sale and yet another abandoned cart. Mobile commerce is growing at an exponential rate, representing 58.9% of global eCommerce sales. As high as that number is, mobile commerce is expected to represent a shocking 75% of all online sales by 2021.

Expansion of Mobile Commerce

PayPal’s New Smart Payment System

The growth of mobile commerce has forced a focus on pain points for consumers, and one of the biggest is defining a payment method. Few people are willing to stop their browsing long enough to dig a credit card out of their purse or wallet. However, they are willing to quickly enter a username and password to their favorite payment gateway in order to complete their purchase. PayPal’s new smart payment buttons are dynamically generated depending on the individual who is logged in and the website to offer the most relevant payment options. This means that customers in the Netherlands will not only see PayPal and Venmo but also iDEAL. Customers in other parts of Europe may see Giropay (Germany) or MyBank (Italy) alongside their familiar PayPal options.

Removing Pain Points

Remembering passwords may soon be a thing of the past, as PayPal is continuing to integrate their payment systems with the biometric properties that are already available on your favorite smartphone. The One Touch-enabled login for PayPal eliminates the need to remember multiple usernames and passwords. Instead, your payment account information is tied directly to your fingerprint for the ultimate in convenience. Once shoppers are logged into PayPal, the correct payment options based on their personal profile and geographic location will be presented automatically.

Benefits to Retailers

Fortunately, retailers are not going to have a big upgrade cost to take advantage of this new PayPal Checkout with Smart Buttons functionality. The developers at PayPal have designed the package in such a way that a small update is all that’s required in order to gain access to the updated suite of services. What’s better is that the upgrade includes access to demographics and a limited number of anonymized psychographics that can be leveraged to improve customer retention. Retailers win by allowing shoppers the easiest possible access to their digital funds — effectively dropping yet another barrier from the mobile and online purchasing process.