Frictionless Commerce: Two Factors That Impact Sales

Aug 19 2021 | 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.
 
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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 

Due to COVID-19, the shift from purchasing goods in physical stores to online has accelerated – with 62% of internet purchases made in Latin America were paid for using digital payment methods.1

As consumer preferences change, one thing stays the same: The secret to improving online sales is through simplicity.

The behaviour scientists at the Stanford Persuasive Tech Lab created the Fogg Behavior Model to show how technology design can change people's behaviours. For a behaviour to occur, one of the key elements is simplicity. The easier an action is to take, the less motivated the customer needs to be to take that action.
 
motivation-quote
 

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 Commerce Platform for Enterprise makes it easy to design and optimize your checkout experience across channels and devices. As one of the world’s leading payments platforms, PayPal offers digital wallets, credit and debit cards, and alternative payment methods – allowing your customers to choose their preferred way to pay and in turn, making it easier for them to complete their online purchases. And with PayPal One Touch, enterprises reduce clicks to checkout to just one – allowing for a seamless checkout process.

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.2 But security is only part of the equation. Enterprises also need to protect themselves from rising fraud – some of these attempts to defraud businesses include:
 
  • Chargebacks - leads to additional fees, loss of inventory, services, and can even lead to them not being able to accept a specific type of credit card. 
  • Credential Stuffing - The use of mass login attempts to verify the validity of stolen username/password pairs 
  • Account Takeover (ATO) – Using unauthorized access to an account belonging to someone else, usually prevalent in gaming, technology where instantaneous approvals of transactions are needed 
The right features can help fight fraud while improving authorization rates and can increase trust and loyalty by creating a secure customer checkout experience.
 
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PayPal Commerce Platform for Enterprise’s advanced Fraud Protection technology 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 Commerce Platform 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 here

 
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.

Sources:
1 Worldwide; March 12 to 14, 2020; 10,000 respondents; 16-74 years; Online survey, Statista 2021
2 The 2020 Global Identity and Fraud Report, Experian, 2020.

Frequently asked questions.

Website Payments Standard (WPS) offers a straightforward and quick way for you to securely accept payments on your website. Customers can pay by using their credit or debit card, or through their PayPal account. You handle the sales while we handle everything from the checkout process to security and mobile compatibility. Plus:
  • No advanced programming is needed.
  • Your customers don’t need a PayPal account to pay you.
  • It’s optimised for customers on smartphones or tablets.
And unlike many full payment-processing solutions, Website Payments Standard has no application, setup or monthly fees, or long-term commitments. You only need to pay a small fee when you make a sale. Learn more about PayPal fees.

How does it work?
Adding WPS to your website doesn't require advanced technical knowledge. You can simply add PayPal payment button code to your website. When your buyers click on the buttons, they’ll be directed to PayPal’s payment page to pay you.
  • If you need a shopping cart: Choose a shopping cart that's already integrated with PayPal, or add our "Add to Cart" button to your website.
  • If you already have a shopping cart: Select PayPal as your online payment service. If you have a custom-built cart, add PayPal by cutting and pasting HTML code into your checkout.
Website Payments Pro – Hosted Solution is a customisable payment system that allows Hong Kong merchants to accept payments funded by all major credit and debit cards. You can create the online checkout experience that’s right for your customers – from branding, look-and-feel, to back-end integration.

Here are some features and benefits of Website Payments Pro – Hosted Solution:
  • Easy integration with popular shopping carts.
  • Keep your customer engaged with your site through the checkout.
  • Accept credit and debit cards in 16 currencies.
  • Accept payments over the phone, fax, or mail orders with Virtual Terminal.
To learn more about the product, fees, and application details, please visit Website Payments Pro – Hosted Solution.
PayPal Checkout is a way to integrate and streamline the checkout process on your website or mobile app. Your customers can pay on your website or mobile app with thier card or PayPal account, using their shipping and billing information already stored securely at PayPal so they don’t have to re-enter it on your site. They'll remain on your site or page throughout the checkout process. By setting up your own customised layout, you can ensure a smooth and uninterrupted shopping experience for your customers.

How does it work?
PayPal Checkout can be integrated directly into your website or as an add-on to a shopping cart. If you already have a shopping cart or are working with a provider that is pre-integrated with PayPal, it’s likely that all you’ll need is your PayPal login or PayPal API credentials for integration.

With some knowledge of API programming, you can also add PayPal Checkout to your website without a shopping cart. You can view more details and the required steps in our integration guide in the Developer portal.
If you have your own website, here are the payment solutions we offer in Hong Kong:

Website Payments Standard
You can simply add PayPal payment button code to your website. When your buyers click on the buttons, they’ll be directed to PayPal’s payment page to pay you.
  • If you need a shopping cart: Choose a shopping cart that's already integrated with PayPal, or add our "Add to Cart" button to your website.
  • If you already have a shopping cart: For PayPal-compatible carts, select PayPal as your online payment service. If you have a custom-built cart, add PayPal by cutting and pasting HTML code into your checkout.
PayPal Checkout
An API-based solution that simplifies your buyers' shopping experience, and keeps them engaged on your webpage or mobile app throughout the entire checkout flow. View our integration guide (in English).

Both payment solutions have no setup or monthly fees, and the transactions eligible for our Seller and Buyer Protection policies are safeguarded by PayPal. You're only charged a fee when receiving a payment.

For technical support on implementing the payment solutions, please visit our dedicated Merchant Integration Tech Support Community and PayPal Developer Centre (in English).

Note: To enhance your account safety and remove initial account limits, please confirm your email address and verify your account first.
The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.