Consumers Are 54% More Willing to Buy When a Business Accepts PayPal
According to a recent Ipsos study of 10,500 consumers across the U.S., U.K., Germany, Australia, Italy, Spain and Brazil, consumers are much more likely to buy from an online business that offers PayPal. On average, there’s a 54 percent increase in consumer willingness to buy when PayPal is available as a checkout option. When buying in situations where consumers have increased concerns — like on mobile, across borders, from unfamiliar brands and when buying high-priced items — the effect of accepting PayPal is even greater.
Interestingly, having PayPal on a business’s site increases a consumer’s willingness to buy among both PayPal and non-PayPal users. While on average, the study found a 54 percent increase in willingness to buy across all markets when a business accepts PayPal, consumers in markets like Germany (+137 percent), Australia (+66 percent) and Italy (+57 percent) were even more likely to buy if a business accepted PayPal.
The study also found that 59 percent of PayPal users have abandoned a transaction because PayPal wasn’t accepted, and 25 percent of people have abandoned a transaction because their preferred payments provider wasn’t there. The study found that presenting a variety of payment options and digital wallets can also drive consumer willingness to buy. That’s why PayPal has been so focused on enabling choice for its customers. Through PayPal Checkout with Smart Payment Buttons™ and Braintree, for example, it enable businesses to offer a wide range of relevant forms of payments, including cards, bank accounts, PayPal, Venmo, PayPal Credit, other digital wallets and local alternative payment methods.
Finally, the study found that 44 percent of consumers are more likely to trust and shop with businesses with a preferred payment provider and good payments process.