Frictionless Commerce: Two Factors That Impact Sales

Mar 11 2024 | PayPal Editorial Staff

Mastering frictionless commerce and giving consumers what they want can be the difference between a conversion and an abandoned cart. But what does friction-free checkout look like?

Seamless and secure online checkout is key to conversions 

Online shopping has changed the way we buy – and it’s also changed the way we pay. Consumers no longer hand over cash to make a purchase. Instead, they choose from any number of payment methods and hand over sensitive personal data. They no longer have to wait in lines at the register, so they expect quick, convenient checkout. It’s all part of the frictionless commerce equation. Enterprise merchants who can solve this equation will deliver an experience that can keep customers coming back. 

Mastering frictionless commerce and giving consumers what they want can be the difference between a conversion and an abandoned cart. But what does friction-free checkout look like? From the consumer’s point of view, it means a simple, intuitive experience that makes it easy to pay. For the enterprise, it means having the security features they need to protect data, fight fraud, and help increase customer trust and LTV.  

Taken together, simplicity and security can have a major impact on conversions. Let’s break down these two must-haves even further – and solve the frictionless commerce equation. 

Simplicity: Making online checkout seamless 

By 2021, global ecommerce retail sales are projected to top $4.9 trillion.1 Much of that shopping will occur on smartphones: 24% of consumers use a mobile phone to shop at least once a week, compared to 23% who use a computer.2 As consumer preferences change, one thing stays the same: The secret to unlocking online sales is simplicity.

The behavior scientists at the Stanford Persuasive Tech Lab created the Fogg Behavior Model3 to show how technology design can change people's behaviors. For a behavior to occur, three elements must converge at the same moment: Motivation, Ability, and Prompt. By focusing on the simplicity of the target behavior, you increase Ability. And the easier an action is to take, the less motivated the customer needs to be to take that action.

What does that mean for an enterprise merchant? Simplicity is synonymous with seamlessness. Consumers don’t want to waste time figuring out how to pay. From desktop to tablet to smartphone, they want intuitive design, fewer clicks, and easy payment options that don’t send them running for their wallets to type in credit card numbers. 

PayPal for Enterprise makes it easy to design and optimize your checkout experience across channels and devices. We’re the only platform that offers PayPal, digital wallets, credit and debit cards, ACH, and local alternative payment methods from around the globe. And with PayPal One Touch, enterprises reduce clicks to checkout to just one – a big factor affecting frictionless commerce. 

PayPal for Enterprise is a single integration that can help take your online checkout from a confusing calculus problem to simple arithmetic. Then it’s time to solve for the second part of the frictionless commerce equation.

Security: Prioritizing data and fraud

Customer trust is essential to any online business – and data security is its foundation. Two-thirds of consumers say security is the most important factor when deciding whether to interact with a business.4 But security is only part of the equation. Enterprises also need to protect themselves from rising fraud: Large online retailers saw a 47% increase in fraud attempts in 2019 compared to the previous year.5 The right features can help fight fraud while improving authorization rates and can increase trust and loyalty by creating a secure customer checkout experience.

PayPal for Enterprise’s advanced Fraud Protection uses an adaptive predictive risk algorithm to help spot fraud while allowing legitimate transactions. PayPal’s fraud detection and monitoring are 24/7 and every transaction is monitored for fraud. Enterprises could see higher auth rates and lower fraud losses. We also provide automated tools to help you manage chargebacks, retrievals, and pre-arbitrations at scale without the need for additional integrations. And we use the latest security protocols like network tokenization and encryption to help you fight fraud.  

Payment processing should enhance the shopping experience, not interfere with it. Every part of the process, from the shopping cart to the back end, can be used to help drive conversions. With PayPal for Enterprise, it’s easier than it seems. Learn how we can help enterprises navigate the new era of payments and start their journey toward frictionless commerce.


The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.

1 Global Ecommerce 2019, eMarketer, July 2019. 
2 Global Consumer Insights Survey 2019, published 2019 by PwC. 
3 Fogg Behavior Model,, 2019. 
4 The 2020 Global Identity and Fraud Report, Experian, 2020. 
5 True Cost of Fraud Study for 2019, published 2019 by LexisNexus Risk Solutions. 

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