Is it possible to increase conversion rates during online checkout to 74%? Providers of online checkout buttons say yes. Checkout buttons are revolutionizing conversion rates for ecommerce.
Digital checkout buttons, such as PayPal, Amazon Pay or Visa Checkout, are payment options integrated into a retailer’s website or app. They function as a shortcut to checkout, processing the financial transaction for the merchant and prefilling shipping data for the consumer. Checkout buttons optimize the checkout process by eliminating consumer pain points, increasing conversion rates and boosting revenue for processors and retailers alike.
Checkout Buttons Increase Conversion
Cart abandonment has been a difficult nut to crack. Despite the steady rise in ecommerce revenues as a whole, cart abandonment rates remain stuck at an abysmal 69%. No matter how many bells and whistles retailers work into their websites, only one in four customers actually completes a purchase. Keeping customers engaged all the way through checkout just isn’t happening, and there are solid reasons why.
Let’s face it, consumers hate entering payment credentials. It’s tedious and time consuming to pull out a card, and laboriously type in a card number, expiration date, security code and shipping address. And if you mistype even one digit, you’ve got to start all over again. It’s a source of great frustration. In fact, 27% of consumers name friction in checkout as their number one reason to abandon a cart.
Digital checkout buttons increase conversion rates dramatically by eliminating this pain point. With checkout buttons, consumers need only to enter a user name and password, or sometimes simply a fingerprint. The linked processor prefills shipping information and handles the transaction. In just a few clicks, the consumer is finished. No friction, no delays, and no chance to change your mind. No barriers to checkout.
Checkout button providers are eager to advertise their conversion success, and they have the data to prove it. Visa statistics show that merchants offering the Visa Checkout button see conversion rates increase by 51%. PayPal claims a 70% checkout conversion. Amazon Pay, the newest (and arguably most high-profile) of the bunch, lists an impressive 74% conversion rate among Amazon Prime customers checking out via Amazon Pay at third party retailers. (Keep in mind of course, these results were achieved under optimal conditions. Your mileage may vary.)
Checkout Buttons Decrease Fraud Worries
Consumers are constantly inundated with dire warnings about data breaches and card theft. As a result, they may be hesitant to trust a lesser-known retailer with sensitive account information. And we know that even larger, trusted brands aren’t immune from hacks. 18% of consumers say that security concerns are their top reason for abandoning a cart. Checkout buttons provide an extra layer of security to protect consumers from data thieves. Consumers appreciate that by using a checkout button, their financial data is handled solely by the processor; there’s never a need for the merchant to have access to their number.
Checkout Buttons Build Credibility
It’s human nature: name dropping works. Association with trusted brands builds credibility. When customers see a trust symbol like Visa, PayPal or Amazon on a website, their confidence in an online retailer’s credibility increases. This is especially beneficial for smaller merchants. While third party processors may charge more per transaction, presenting a credible brand is worth almost any price. For instance, if a customer sees an Amazon Pay button prominently displayed on the site, they are likely to transfer their feeling of trust in Amazon to that retailer. The presence of a trusted acceptance mark increases a customer’s confidence in doing business with that provider.
Know Your Choices
Due to their popularity, there are over a dozen checkout button providers vying for that coveted spot on a retailer’s order page (there’s even a Pay With Bitcoin button!) However, at this time the current US leaders for online checkout buttons are PayPal, Amazon Pay, and Visa Checkout.
On all fronts, checkout buttons are a major success. Checkout buttons increase conversion rates by providing consumers with a practical, secure shortcut at checkout. And by building retailer credibility with trusted brands, checkout buttons remove barriers for smaller merchants. As competition for a payment spot at checkout increases, we can expect these online payment options to become even more beneficial for retailers and consumers alike.