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Forrester total economic impact of PayPal checkout: Summary of benefits

Forrester

Forrester

April 18, 2024

April 18, 2024

3 mins read

PayPal commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI)1 study and examine the potential return on investment (ROI) enterprises may realize by deploying PayPal Checkout and PayPal Pay Later.

Forrester interviewed representatives at four organizations using PayPal Checkout and concluded that PayPal Checkout has the following three-year financial impact.2

Three-year, risk-adjusted cost savings

Summary of benefits2

  • 136%: Return on investment (ROI)
  • $75.2M: Benefits present value (PV)
  • $43.3M: Net present value (NPV)

When customers see PayPal as an option, they’re quick to check out. It’s a familiar method. Customers don’t have to think about it.

Digital payment manager

Supply chain

PayPal checkout by the numbers2

  • 10% increase in AOV with PayPal Checkout
  • 35% increase in AOV with PayPal Pay Later compared to PayPal Checkout AOV
  • 1 percentage point increase in conversion rate with PayPal
  • 2% increased customer retention rate

We saw a higher add-to-cart number, a lower cart abandonment, and a higher conversion number for products with PayPal Checkout enabled

VP of E-Commerce

Retail

Read the full report to learn more about the value PayPal Checkout can provide your organization: Total Economic Impact of PayPal Checkout.

Forrester TEI Infographic Report (PDF)

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Forrester TEI Infographic Report (PDF)

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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.
© Forrester Research, Inc. All rights reserved.
1Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
2This document is an abridged version of a case study commissioned by PayPal titled: “The Total Economic ImpactTM Of PayPal Checkout,” December 2023. The merchant used as the basis for this study is a North America-based retail merchant with global operations and $5 billion in annual revenue. The average order value (AOV) with traditional PayPal checkout is $77 and with PayPal Pay Later is $104. Individual results may vary.

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