PayPal may help drive conversions, spend, and satisfaction, according to Nielsen

PayPal may help improve checkout conversions

For more than 20 years, users have trusted PayPal to help keep customers’ payment data secure and deliver frictionless shopping experiences. Large enterprises may meet new shoppers and grow their businesses by tapping into PayPal’s loyal base of 400+ million active accounts.²

Businesses that display the PayPal name may see more shoppers convert to buyers. On average, large enterprises see a 33% increase in checkout conversion when PayPal is selected as a payment method.³

PayPal also helps encourage new shoppers who are unfamiliar with a business but may already be familiar with and trust the PayPal brand. In fact, 74% of PayPal users are more likely to complete a purchase from an unknown business when PayPal is available at checkout.⁴ This brand loyalty can help businesses increase revenue and build customer confidence.

PayPal may help increase average order values and unplanned purchases

Shoppers may have increased confidence to complete larger transactions when they use PayPal. Average order values (AOVs) – the average dollar amounts of total customer orders – are higher for shoppers who use PayPal as a payment method.⁴ In fact, AOVs are 58% higher for health and beauty businesses.⁴

Customers who saw PayPal at checkout reported a 13% increase in unplanned purchases when PayPal is an option,⁴ with a 38% increase in the food delivery category.⁴

PayPal may help encourage customer loyalty and satisfaction

Businesses that offer PayPal at checkout may benefit from more-frequent sales from repeat customers. PayPal users buy 60% more frequently than non-PayPal users.³ These customers tend to come back, with research showing a 20% increase in repeat buyers who use PayPal.³

Adding PayPal messaging upstream – before a shopper reaches checkout – may help attract and retain customers. Businesses reported a 10-point increase in Net Promoter Score (NPS) when presenting PayPal as a payment method early in the shopping experience.⁵ Businesses use NPS as an indicator of customer satisfaction. The higher the NPS, the more satisfied the shoppers – and the more likely they will recommend the business to a friend or colleague.

Regarding specific verticals, NPS grew by 20 points for electronics businesses, 13 points in grocery businesses, and 11 points in health and beauty businesses.⁴ Customers who buy with PayPal are also 28% more likely to have a positive purchase experience.⁴

Businesses across industries may benefit from PayPal

Nielsen examined PayPal’s positive impact across a range of industries. While the industries differ, the findings are similar. PayPal may bring a boost to businesses:

1. Electronics: PayPal may help increase checkout conversion by an average of 74%.³ Compared to other payment methods, PayPal customers are 54% more likely to buy when they pay with PayPal.⁴ And customers are 70% more likely to convert when shopping with businesses where PayPal is visible.³
2. Fashion: PayPal customers are 40% more likely to buy fashion items when they pay with PayPal.⁴ And PayPal can bring 18% more repeat buyers.³
3. Food delivery: PayPal users spend on food delivery services 70% more frequently than other digital buyers.³
4. Health and beauty: Shoppers who use PayPal spend 58% more than non-PayPal users for their health and beauty purchases.⁴
5. Entertainment and leisure: PayPal users buy entertainment and leisure purchases from large enterprises two times more frequently than other digital buyers.³
6. Travel and transportation: PayPal may help increase conversion by an average of 84%.³
7. Grocery: PayPal may help increase AOV by 12%.⁴

Flexible payment options can help capture sales

Buy now, pay later (BNPL) offerings like PayPal Pay Later give shoppers a way to spread the cost of their purchases over time and to buy better products, according to 77% of BNPL users surveyed.⁶ Shoppers can buy what they want and pay for those purchases with one down payment and three additional payments spread over six weeks.⁷ Or they can pay over 6, 12, or 24 months at varying annual percentage rates (APR).⁸

Because Pay Later is part of the PayPal ecosystem, businesses and shoppers can feel confident about Pay Later as a BNPL option – in the same way they feel confident about PayPal as a payment service provider and payment method.

Businesses that offer Pay Later have already reported:

• Larger shopping carts: Large enterprises that offer BNPL reported 39% higher AOV compared to standard PayPal purchases.⁹
• Positive shopping experiences: PayPal BNPL purchasers are 24% more likely to report a positive impact on their purchase experience (versus non-BNPL PayPal purchasers).⁹
• Fewer abandoned shopping carts: 67% of Pay Later users have abandoned a purchase because Pay Later options weren’t available at checkout.¹⁰

While BNPL adoption is still expanding, businesses that offer BNPL can convert more shoppers and enable favorable experiences.

PayPal can help businesses optimize their customer journeys

PayPal equips businesses with the right tools and proven solutions informed by PayPal’s global network. The 2023 Nielsen report offers fresh insights into how PayPal can help large enterprises improve their customers’ purchasing experiences. Learn more about:

• Which common triggers can lead to online conversions, and how to help increase conversion rates.
• How PayPal may help attract new customers and help increase repeat purchases.
• How PayPal may help increase AOV and unplanned purchases.
• PayPal’s positive impact on specific industries.
• How BNPL may help improve checkout conversions and overall shopping experiences.

Large enterprises that work with PayPal can be confident that they can better thrive in an ever-changing world. To learn more about how PayPal can help drive revenue growth, visit PayPal.com/Accept-PayPal.