PayPal announced the launch of One Touch for Web, enabling users to pay for things around the web without user IDs and passwords after their first login. The feature was first launched on mobile devices back in August.
Since the mobile launch, merchants including Airbnb, Boxed, Jane.com, Lyft, Munchery, and YPlan have added One Touch to their services.
"Not only did consumers love the experience, but we heard from many of our merchants that One Touch led to an immediate increase in sales, average order values, customer adoption and loyalty," said Bill Ready, Senior Vice President, Global Head of Merchant and Next-Generation Commerce at PayPal. "For example, Yplan reported a double digit increase in conversions since using One Touch, and StubHub reported a double digit increase in total sales and transactions through PayPal on iOS with One Touch since enabling One Touch for mobile last fall. And because One Touch enables consumers to pay without entering any payment information even at signup, it helps to increase customer adoption."
"With the extension of One Touch for mobile and web browsers, merchants can now offer their customers this same great buying experience across the Web, enabling more seamless and secure shopping," he added. "Most PayPal merchants will automatically have One Touch enabled for their customers, without needing to do any integration. Consumers that choose to pay via One Touch will soon be able to securely checkout across millions of PayPal enabled websites in a single touch, without having to re-enter their login information. And since we’ve extended the product beyond native mobile, One Touch will soon be available to PayPal’s 165M customer accounts regardless of whether they have the PayPal mobile app."
The change has already begun rolling out in the U.S. It will expand internationally over the coming months, the company says.
PayPal released this infographic illustrating the time and effort One Touch saves:
According to Reuters, PayPal hopes the feature will reduce the "$4 trillion in merchandise abandoned in retailers' online shopping carts every year due to complicated checkout procedures."
Shopping cart abandonment is indeed still a major issue for online businesses, and things have only gotten worse. Unfortunately, PayPal's solution will do little to influence one of the biggest reasons people abandon their carts, and that's shipping costs.
Last fall, UPS and comScore partnered on a study, which found that as many as 81% of online shoppers in the U.S. indicated free shipping played a major role in their experience. 9 out of ten shoppers said they abandon shopping carts, while 6 out of 10 said they’ve done so after finding out that shipping costs made the price higher than expected. Half said they abandoned carts because their order value wasn’t large enough to qualify for free shipping.
Other reasons included people not being ready to purchase, but wanting to save the cart for later or wanting to get an idea of the cost for comparison, getting distracted and forgetting to complete a purchase, and preferred payment options not being offered.
Image via PayPal