Nielsen: PayPal may help drive conversions, spend, and satisfaction

Evolving customer preferences and payment methods create opportunities for enterprise businesses to redefine their growth strategies. Improvements in customer acquisition, conversion, and retention efforts can unlock opportunities to reach valuable, highly engaged customers and drive revenue growth.

Customers expect increasingly seamless and flexible shopping experiences: fast checkouts, minimal clicks, and preferred ways to pay. Consequently, they are selective about the businesses they patronize and where they complete their purchases. In fact, large enterprises experience only a 6.1% average e-commerce conversion rate in the United States¹. A payments solution like PayPal can help large enterprises optimize the customer journey to increase conversion rates and revenue.

The latest research from the global market research and analysis firm Nielsen, commissioned by PayPal,² found that PayPal may help drive value for large enterprises through improved conversion, increased customer spending, and differentiated shopping experiences.

Customers’ brand preference for PayPal may help large enterprises improve conversion

Surveyed PayPal customers choose to complete online purchases with PayPal over other payment methods because PayPal is a trusted brand, and it’s a fast and simple way to pay.³ This strong reputation may translate into improved conversion, as PayPal customers are 25% more likely to buy when they pay with PayPal,³ and they may complete more checkouts. Surveyed large enterprises that use PayPal see 33% more completed checkouts from the point at which customers start to pay, compared to typical methods.⁴

Within the software and electronics industries, PayPal customers are 54% more likely to buy when they pay online with PayPal.³ Companies – like the people search website Spokeo – have seen an even bigger impact.

Spokeo sees a quick impact on conversion with PayPal

Spokeo turned to PayPal when its executives wanted to offer additional payment methods beyond credit cards. After reviewing several payment options and assessing customer demand, they chose to add PayPal at checkout.

Spokeo conducted a controlled A/B test to analyze PayPal’s conversion and overall impact upon integration. The results revealed a 20% increase in the company’s conversion rate within the first week of testing,⁵ and an approximate 25% lift in conversion.⁶ After a sitewide rollout, PayPal accounted for 35% of total sales and a 14% gain in new customers.⁶

PayPal provided immediate and positive results at checkout, but it also delivered an extra benefit: “PayPal has opened doors for us to showcase our services and be accessible to customers who may not know us,” says Eric Liang, Spokeo co-founder and CIO.

Customers may purchase more with PayPal

PayPal may help increase average order values (AOVs) in select industries like grocery, where surveyed shoppers who use PayPal spend 12% more than shoppers who used other payment methods.³ PayPal users also buy 60% more frequently compared to other digital buyers.⁷ And PayPal helped supermarket chain Giant Eagle accomplish both.

Giant Eagle unlocks higher customer average purchases and repeat visits with PayPal

Giant Eagle turned to PayPal to improve the ease and speed of checkout while enabling unified shopping experiences across platforms and physical locations. In 2022, Giant Eagle became the first supermarket to launch QR codes for PayPal and Venmo for in-person payments.

Adding PayPal and Venmo into the grocery checkout experience resulted in sizable benefits for Giant Eagle. Those paying with Venmo have the highest average AOVs among all payment methods,⁸ and customers using PayPal have the highest repeat buying rates.⁹ “How often a customer comes back is a great measure of how we’re doing in providing the service our customers need,” said Dan Magrish, senior director of gift cards and payments at Giant Eagle.

Larger enterprises may see an increase in repeat buyers when using PayPal

PayPal users who are satisfied with their purchase experience may also benefit large enterprises that want to turn one-time shoppers into lifetimers. PayPal may encourage customers to come back, as the payment method can bring 20% more repeat buyers on the same website.⁷

Surveyed customers who make online purchases with PayPal are 28% more likely to have positive purchase experiences.³ And customers who use PayPal to buy health and beauty items online are 57% more likely to have positive purchase experiences.³ When the lifestyle appliance brand BlendJet wanted an easy checkout solution for a worldwide customer base shopping for health items, PayPal delivered more than a simpler way to pay.

BlendJet boosts sales and customer satisfaction with PayPal

BlendJet is a brand that cares deeply about delivering positive customer experiences. Rave customer reviews and social media posts from satisfied customers highlight its success.

When it considered global expansion, BlendJet knew it had to deliver a simpler checkout experience while maintaining high customer satisfaction. Since 90% of BlendJet’s purchase transactions are completed on mobile devices, it was important to offer a secure, trusted, and frictionless payment method with global reach.⁹

BlendJet wanted to give its customers the ability to complete purchases with just a few steps while confident in the safety of their payment information. Since PayPal saves customers from having to enter all their payment information every time they purchase, customers found BlendJet’s checkout process to be fast and easy.

According to the company’s co-founder and CEO, Ryan Pamplin, the trust that BlendJet customers have in PayPal helps drive purchases. “People use PayPal all around the world. So having PayPal as a payment option has been a critical function for our cross-border e-commerce growth,” he explains.

Transactions with PayPal Checkout now represent one-third of BlendJet’s total sales.⁹ “We’re data-driven and we like to split test things,” Pamplin adds. “When split testing PayPal, it was clear early on that offering PayPal as a payment method increases our conversion rate.”

Large enterprises stay ahead with PayPal

PayPal has the right tools and proven solutions to help large enterprises across industries reach and retain loyal customers and drive revenue growth. PayPal’s flexible infrastructure empowers businesses to adapt to new buying trends, while continuously working behind the scenes to innovate payments, help boost engagement and conversion, and deliver top-notch customer experiences.

Large enterprises that work with PayPal to redefine their growth strategies can increase their confidence to thrive in an ever-changing world – all from a brand that customers trust.

Discover how PayPal can help improve the customer experience.