© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
How checkout process
can affect your sales
Botond Boros, PayPal CEE
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
2
What is cart abandonment? Customer empties cart immediately in your webshop
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
How often does it happen? 7 times out of 10 purchase actions
of the shopping carts are abandoned
right before the transaction is complete 67%
3
88% of internet shoppers openly admit to
abandoning a shopping cart without
making a purchase
Sources:
Understanding Shopping Cart Abandonment, Forrester report
Comscore: http://www.getelastic.com/shopping-cart-abandonment-
stats-infographic/
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
4
Which industries are the most endangered?
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
5
Reasons for dropping a cart
56%
36%
32%
25%
24%
21%
18%
17%
16%
15%
0% 10% 20% 30% 40% 50% 60%
Presented with unexpected costs
Found a better price elsewhere
Overall price is too expensive
Website navigation is too complicated
Website crashed
Process was taking too long
Excessive payment security checks
Concerns about payment security
Delivery options are insuitable
Website time out
Source:
http://conversionxl.com/shopping-cart-abandonment-how-to-recover-baskets-
of-money/
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
REASON #1: PAYMENT
SECURITY
6
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7
Online fraud rate by order: 0.8%
Mobile fraud in revenue: 1.4%
Avg value of 1 fraudulent order: $200
Source: Cybersource Online Fraud Report 2013
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
PayPal at a Glance Introduction to PayPal
8
An easier, faster and safer way to pay and get paid online.
Safe Convenient Fast
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9
PayPal’s fraud rate: 0.14%
Transaction monitoring
Network of authorities
2000 people fighting
fraud 24/7
Seller/buyer protection
program
PCI/AML Compliant
PayPal is Safe An Important Trustmark for every shop
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
10
29% - No!
Online Buyers
45% - No!
Mobile Buyers
44% - No!
International Buyers
Safety is the most important factor why buyers prefer
PayPal
Would you have the purchase if PayPal was not an available payment option?
Why not?
1. Safety (75%) 3. Loyalty (10%) 2. Convenience (24%)
PayPal Sales Lift Report EMEA 2014, Online, Mobile, Cross border
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
REASON #1: PAYMENT
PROCESS IS TOO LONG
11
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12
Traditional payment flow
1
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13
Traditional payment flow
2 3
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14
Traditional payment flow
4
2:30 - 06:00 minutes
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15
PayPal payment flow
1
Click on Checkout button
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16
PayPal payment flow
2
Login to PayPal
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17
PayPal payment flow
3
Confirm payment by clicking on the
button ‘Continue’
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18
PayPal payment flow - mobile
Confirm payment by
clicking on the button
‘Continue’
Login to PayPal Click on ‘PayPal’
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Sales uplift
in intra-border sales
Sales uplift
in cross-border sales 21%
9%
19
PayPal payment flow
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
20
PayPal is hassle-free Start selling in a few clicks!
Instant Payments
API Based Solutions
Multi-channel by Default
Payment processing made simple
Get paid instantly
Withdraw to bank account
immediately
Instant Payment notifications
Get started - today!
Easy integration – API based
solutions
Full reporting functionality
Simple, mobile optimized
checkout process by default
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
PayPal payment flow – Express Checkout from Q4
Light box payment panel
Login/confirm/change right in
the pop-up
No redirect to PayPal
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22
PayPal payment flow - now
2. PayPal payment Login, confirm
3. Webshop Redirect to webshop
1. Webshop Choose the product
Without PayPal
CVC code, expiry date, bank
account number
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
23
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
24
PayPal payment flow – Express Checkout from Q4
1. Webshop with on-site payment Choose the product + Payment with PayPal
+
© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.
Sales uplift
in intra-border sales
Sales uplift
in cross-border sales 21%
9%
25
Thank you for your attention!
For more information: [email protected]
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