August 26, 2015
Visa Inc. announced that the users of its payment service Visa Checkout are 17 percentage points more likely to complete their online purchase than compared to the ones using PayPal Express Checkout.
Visa Checkout is designed to make online shopping as easy as swiping a physical card. After signing up once, Visa Checkout removes the need to enter card details during the online checkout process wherever consumers see the Visa Checkout button.
Visa claims 66% of its customers completed their online purchase after putting items in their shopping cart compared to the 49 percent of users completing their online shopping with PayPal Express Checkout.
Retail analytics firm comScore Inc. collated the data for Visa.
PayPal’s digital payment service allows users to log into their accounts on a retailer’s website.
Anuj Nayar, Senior Director of Platform, Merchant and Next Gen Commerce Engagement, said that PayPal has not seen this report yet.
In addition to PayPal Express Checkout, the company has launched one new online payment service called PayPal One Touch. PayPal launched One Touch for native mobile, one of the industry’s first single-touch payment experiences on iOS and Android. Since then, One Touch has improved the buying experience for consumers and merchants alike. To take the One Touch platform ahead, PayPal recently launched One Touch for the Web, enabling consumers to pay without user IDs and passwords on the Web after their first login, just like on mobile devices.
"Initial reports indicate that One Touch radically improves checkout conversion for merchants and time to check out for consumers beyond anything else available in the market today," he said to Reuters.
"What has become more and more pronounced is as the size of the screen gets smaller—whether it's a tablet, mobile or a watch—the less likely it becomes a consumer will finish his purchase," Sam Shrauger, Senior Vice President of Visa's Digital Solutions, told Reuters.
A year since its launch, Visa Checkout has 6 million registered users whereas PayPal has 169 million active customer accounts.