In August 2024, PayPal, a well-known global payments platform, and Fiserv, a prominent provider of financial services technology, announced they are broadening their collaboration to enhance the checkout process for US merchants. This PayPal Fiserv partnership will integrate PayPal’s payment solutions—including PayPal itself, Venmo, and the Fastlane service—into Fiserv’s extensive merchant-serving ecosystem, which includes small businesses and large enterprises. Through this partnership, businesses will access a unified connection point to Fastlane by PayPal to streamline and quicken the guest checkout flow.
Key Takeaways
- PayPal Expands Checkout Efficiency with Fiserv: PayPal and Fiserv have deepened their collaboration to streamline the checkout process for US businesses by integrating PayPal’s Fastlane, PayPal, and Venmo services into Fiserv’s ecosystem.
- Boosting Conversion Rates: The Fastlane solution is designed to reduce checkout times by 32% and increase conversion rates by up to 50%, significantly improving the efficiency of guest checkouts and reducing cart abandonment.
- Simplifying Guest Checkout: Fastlane by PayPal enables users to complete purchases with fewer clicks, eliminating the need to re-enter personal information and creating a faster and smoother checkout process.
- Long-Standing Partnership: This expanded collaboration builds on a decade-long partnership. Offering a range of payment solutions to millions of businesses reinforces PayPal and Fiserv’s commitment to simplifying commerce operations for their clients.
PayPal Expands Partnership with Fiserv to Streamline Checkout and Boost Conversion Rates
PayPal has broadened its collaboration with Fiserv to improve the checkout process for businesses across the US. This initiative aims to facilitate integrating PayPal and Venmo services within Fiserv’s client network, enhancing the efficiency of guest checkouts via PayPal’s Fastlane.
This development enhances a longstanding partnership between the two firms, which has provided a wide array of merchant and payment services to millions of businesses worldwide over the past decade. With this expansion, Fiserv’s clients will have more straightforward access to PayPal’s offerings, including the Fastlane service, known for significantly boosting conversion rates and decreasing checkout durations for guest shoppers.
Fastlane by PayPal utilizes the company’s payment expertise to enable users to complete purchases with fewer clicks. PayPal’s updated guest checkout service enables shoppers to buy online items without the need to re-enter passwords, shipping addresses, or other card payment details if this information is already stored in PayPal’s system.
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A standout feature of the collaboration is the integration of PayPal’s Fastlane, a guest checkout solution that leverages PayPal’s payment expertise. Fastlane offers merchants a fast, streamlined checkout option for customers not logged into an account.
PayPal’s data indicates that Fastlane can boost conversion rates by as much as 50% and shorten checkout times by 32%, markedly enhancing payment process efficiency. Speeding up the checkout experience, particularly for guest shoppers, can increase sales and reduce abandoned shopping carts, a frequent issue in e-commerce.
Businesses utilizing Fastlane have experienced significant improvements in their checkout metrics. PayPal’s reports show that guest shoppers at these businesses convert at rates over 80%. This substantial rise in conversions—50% higher than those experienced by non-Fastlane users—demonstrates the effectiveness of a seamless checkout process in influencing customer decisions.
Reducing obstacles during checkout is crucial, as it increases the likelihood of purchase completion. In the competitive e-commerce landscape, where enhancing user experience and boosting sales are paramount, minimizing checkout barriers is essential.
Frank Keller, Executive Vice President and General Manager of the Large Enterprise and Merchant Platform Group at PayPal, expressed enthusiasm about expanding their partnership with Fiserv, aiming to offer their innovative products and solutions to a wider market. He highlighted this alliance as a step forward in their goal to improve checkout efficiency by collaborating with top-tier payment service providers and e-commerce platforms.
For over ten years, PayPal and Fiserv have collaborated on a range of superior merchant and payment services, including payment processing, payouts, network services, and other e-commerce functionalities, impacting millions of merchants worldwide. PayPal regards Fiserv as a fundamental strategic partner that provides the technology and capabilities essential for PayPal’s focus on customer-centric innovations across various domains and product lines.
Jennifer LaClair, Head of Merchant Solutions at Fiserv, remarked that their company is dedicated to reducing the complexities of commerce, thereby generating value for their clients. By simplifying business operations to foster new, engaging customer experiences, their enhanced partnership with PayPal aligns with Fiserv’s commitment to boosting client success through straightforward, advanced solutions that improve and expedite the commerce process.
Alongside its partnership with Fiserv, PayPal has recently expanded its new guest checkout features to include Adyen and Shopify clients. This enhancement allows merchants within these networks to utilize PayPal’s services.
Previously, PayPal and Adyen had collaborated to offer PayPal’s Venmo and buy now, pay later options to Adyen’s merchant base.
Similarly, other major payment companies are also forging partnerships to boost their checkout capabilities. Stripe has entered into a partnership with the buy now, pay later firm Zip to integrate installment payment options at the checkout stage. Additionally, American Express has partnered with Nigerian payment provider Flutterwave, enabling AmEx cardholders to make payments for selected online businesses.
About PayPal
PayPal Holdings Inc.’s technology platform facilitates digital transactions and enhances commerce experiences. The company primarily focuses on processing monetary transactions for individuals and businesses and provides various payment options, including person-to-person transfers.
Key services offered by PayPal include proprietary payment systems, transaction authorization and completion capabilities, and immediate fund access and distribution. PayPal is linked with prominent brands like Venmo, Braintree, and Xoom. Its services are widely utilized by both consumers and merchants for online and offline transactions and payment management. PayPal supports a comprehensive international network that bridges merchants with consumers. It is based in San Jose, California, USA.
In January, PayPal launched Fastlane, an initiative designed to streamline the checkout process by facilitating one-click guest checkouts for users who store their information with PayPal. According to PayPal’s announcement, Fastlane improves the checkout by removing common obstacles such as the need to update credit card and shipping information and avoiding disruptions like password requests and slow response times, which can hinder the shopping experience.
On August 6, the company broadened its access to this one-click checkout tool, making it available to any business utilizing PayPal’s Complete Payments or Braintree platforms.
About Fiserv
Fiserv, Inc. offers a comprehensive suite of integrated information management and electronic commerce systems and services. The company delivers a variety of solutions, including transaction processing, electronic bill presentation and payment, business process outsourcing, document distribution services, and software and system solutions. Within its Payments segment, Fiserv provides services that encompass electronic bill presentation, mobile and online banking software, person-to-person and account-to-account transfer services, and credit and debit card processing.
This segment also covers payment infrastructure and other related electronic payment services. The Financial segment caters to financial institutions by offering services like item and account processing, source capture, servicing products, loan origination, consulting, cash management, and other support for financial transactions. The Corporate and Other segment includes intercompany eliminations, amortization of acquisition-related intangible assets, unallocated corporate costs, and other non-operational activities such as business sales gains and associated transition services. Fiserv was established by Leslie M. Muma and George D. Dalton on July 31, 1984, and is based in Brookfield, WI.
Conclusion
The expanded collaboration between PayPal and Fiserv marks a significant advancement in optimizing the checkout experience for US merchants. By integrating PayPal’s payment solutions, including Fastlane, into Fiserv’s extensive ecosystem, the partnership aims to simplify and expedite the checkout process for both businesses and their customers. This integration promises to enhance transaction efficiency, boost conversion rates, and reduce checkout times, addressing key pain points in e-commerce.
With Fastlane’s one-click checkout functionality, merchants can offer a more streamlined and user-friendly payment experience, which is crucial for minimizing cart abandonment and driving sales. This partnership not only reinforces the longstanding relationship between PayPal and Fiserv but also aligns with broader industry trends where improving checkout efficiency remains a top priority. As both companies continue to innovate and expand their offerings, the enhanced collaboration is set to deliver significant benefits to a wide range of businesses and their customers.
