Beginning in August, users of US-based Braintree and PayPal payment gateways can utilize PayPal Fastlane for faster checkout. Fastlane simplifies guest checkout by enabling online shoppers to finalize their purchases with a single click. This service uses PayPal’s comprehensive network and payment processing prowess to streamline the checkout process, increase conversion rates, and enhance customer satisfaction.
Key Takeaways
- Enhanced Checkout Experience: PayPal’s Fastlane simplifies the guest checkout process, enabling consumers to complete purchases quickly, often with just one click, which can significantly improve conversion rates for US merchants.
- Increased Conversion Rates: Merchants using Fastlane have reported higher conversion rates, with studies showing up to a 50% improvement in performance compared to traditional guest checkouts.
- Customer Recognition and Security: Fastlane efficiently identifies returning customers through their email addresses, allowing for quick retrieval of stored data with advanced security measures like tokenization and encryption to protect customer information.
- Easy Integration and Customization: Fastlane is available on PayPal Complete Payments and Braintree and will soon expand to other platforms. Merchants can easily activate and customize the service to align with their store’s branding through a simple setup process.
PayPal Fastlane Streamlines Guest Checkout, Boosting Conversion Rates for US Businesses
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PayPal recently launched its Fastlane service, which is designed to make the guest checkout experience more efficient for US businesses. Fastlane addresses typical obstacles in guest checkout, such as lengthy forms and the need to remember passwords, which often lead to customers abandoning their shopping carts. It allows consumers to complete purchases quickly, typically with just one click.
Introduced in January, PayPal Fastlane holds customer information like names, phone numbers, emails, payment details, and shipping addresses. When customers shop on a merchant’s website, they can quickly fill in their information using a verification code received via email. PayPal identifies users by details like emails or phone numbers to retrieve information from Fastlane and offers new users the option to enroll during checkout.
PayPal said in a statement that many merchants experience lost sales due to prolonged guest checkout processes. Despite being time-consuming, many consumers still prefer guest checkout.
The company developed PayPal Fastlane to overcome these obstacles, focusing on the needs of both merchants and consumers. PayPal Fastlane identifies consumers early in the checkout process through their email, enabling them to use the information they store after verifying it with a one-time passcode. This allows them to quickly complete their purchases, often with just one click.
Additionally, the release mentioned that consumers who are not recognized during checkout can set up a Fastlane profile, enabling quicker future purchases without the need to fill out forms or create new passwords.
The motivation for creating PayPal Fastlane is rooted in the inefficiencies of traditional guest checkout processes. Despite the option to create user accounts, 43% of consumers still prefer guest checkout, with 72% choosing it even when they have an account. Furthermore, 66% of consumers expect checkout to last less than four minutes, a benchmark often missed by conventional guest checkouts due to extensive forms and multiple steps.
PayPal reports a noticeable improvement in conversion rates with the adoption of Fastlane. From early April to mid-June, a study showed that 86% of shoppers at Black Forest Décor—a retailer specializing in rustic bedding and cabin décor—completed purchases using Fastlane, compared to 76% who opted for standard guest checkout. Customers using PayPal Fastlane also completed transactions in under two minutes, significantly faster than the roughly 3.9 minutes for those using the traditional method.
BigCommerce, another primary partner of PayPal and the first ecommerce platform to incorporate PayPal Fastlane has collaborated with its merchants over several months to evaluate the Fastlane experience. These evaluations show that guest shoppers using PayPal Fastlane have a conversion rate of over 80%, perform up to 50% better than those not using Fastlane, can complete their checkout in approximately two minutes, and reduce their checkout time by 32%.
PayPal Fastlane helps sellers quickly recognize returning customers through their email addresses, enabling them to access their saved data with a one-time passcode. This method considerably reduces the time and effort needed to complete a transaction, meeting consumer expectations for quick and convenient shopping experiences.
The service is now offered on PayPal Complete Payments and PayPal Braintree and will soon be available on additional platforms like Adobe Commerce and Salesforce Commerce Cloud. The integration process for merchants is designed to be simple, which could lead to rapid adoption.
Should Your Business Offer Fastlane?
The efficiency of your storefront’s checkout process can determine whether a shopper completes a purchase or abandons their cart. This impact is particularly significant for guest shoppers who usually manually input their shipping and payment details.
PayPal Fastlane allows your shoppers to set up a payment profile at any participating business. Once a Fastlane profile is established, shoppers can confirm their identity with a mobile code on subsequent purchases to automatically fill in their details, enabling them to finalize their checkout with a single click.
Fastlane also incorporates advanced security measures, including tokenization and encryption of customer card details, to ensure compliance with PCI DSS standards. This helps protect customer data and reduces the burden on merchants to manage these compliance requirements independently.
How Can You Get Started with PayPal Fastlane?
To begin using Fastlane by PayPal, make sure your store is in the United States and uses USD for transactions. Fastlane is accessible for new users who connect through PayPal or Braintree gateways, and it is automatically turned on during the initial setup. If you’re an existing user, you can activate Fastlane by going to the settings section of your preferred gateway under the “Payments” category in your control panel. Select the “Enable Fastlane by PayPal” checkbox and save your settings.
Once Fastlane is active, you can personalize the checkout process. This includes altering how privacy information is shown to customers and changing the design of Fastlane components to align with your store’s branding. These adjustments are made through your store’s control panel.
For further instructions on setting up Fastlane and understanding what to expect from your shoppers, please consult the resources available in your platform’s Knowledge Base.
About PayPal
PayPal Holdings, Inc. develops technology for digital payment processes. Its product line includes PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant. The company operates a proprietary global technology platform that connects both merchants and consumers, supporting various payment transactions. Users can make purchases, pay for goods, or transfer and withdraw funds using their accounts.
PayPal users can also pay merchants using multiple funding sources, such as bank accounts, PayPal Credit, PayPal balance, and debit or credit cards. The company provides personal payment solutions via its website and mobile apps, including Xoom and Venmo. It was established in December 1998 and has its headquarters in San Jose, California.
Conclusion
PayPal’s introduction of Fastlane marks a significant improvement in the checkout experience for US businesses and their customers. By simplifying the guest checkout process to just a few clicks, Fastlane effectively addresses the common challenges that lead to cart abandonment, such as lengthy forms and forgotten passwords.
The early success reported by merchants, including higher conversion rates and faster transaction times, highlights the effectiveness of this service. With easy integration and robust security features, Fastlane is poised to become a valuable tool for merchants looking to streamline their checkout processes and enhance customer satisfaction.
