PayPal & Adyen Strengthen Partnership to Enhance US Checkout
PayPal has expanded its partnership with Adyen to offer Fastlane by Paypal to Adyen’s enterprise and marketplace customers in the US.
The move is aimed at streamlining the checkout process and boosting conversion rates for businesses leveraging Adyen's platform.
Exploring Fastlane by PayPal
Since its release, Fastlane by PayPal has demonstrated impressive results, with conversion rates exceeding 80% and a reported 32% reduction in checkout time compared to traditional methods.
The system allows shoppers to save their card and shipping information more efficiently during their initial checkout with a participating merchant, enabling automatic pre-filling of this data for future purchases across all Fastlane-enabled platforms.
Alex Chriss, President and CEO of PayPal, says: “Adyen's customer base and relationships with enterprises make them the ideal first Fastlane payment processing partner. This strategic partnership aligns with our goal to make PayPal available everywhere customers shop globally.”
A boost for the ecommerce sector
The growing partnership between PayPal and Adyen is set to have a far-reaching impact across the US ecommerce landscape, given Adyen’s extensive customer base.
Pieter van der Does, Co-founder and co-CEO of Adyen, adds: “The expanded partnership with PayPal further strengthens Adyen's ability to provide global enterprises with seamless payment flows and top-quality guest shopping experiences.”
This latest development builds upon an existing relationship between PayPal and Adyen, which has previously allowed Adyen's customers to offer PayPal's suite of payment solutions, including Venmo and Buy Now, Pay Later (BNPL) options.
While the initial rollout of Fastlane by PayPal via Adyen will focus on the US market, there are plans to extend this offering globally in the future.
For now, the partnership represents an opportunity for PayPal to expand its reach and cement its position as a leading payment platform.
As Alex Chriss highlights: “PayPal has evolved into a platform of choice for the world's largest commerce brands, technology companies and payment processors offering seamless and connected commerce experiences to hundreds of millions of consumers and businesses.”
Meanwhile, for Adyen, the collaboration enhances its value proposition to enterprise clients by offering an additional tool to optimise checkout processes and potentially increase sales.
Van der Does underscores the significance of this: “PayPal is a payment brand name that shoppers trust, and we're excited to take our collaboration another step further in the US, utilising our combined expertise to raise the bar for our customers.”
Seamless checkout experience key to retention
Perhaps most importantly, it is the customers of enterprises and marketplaces in the US that can now reap the benefits of a faster checkout process.
A 2023 study by the Baymard Institute found that 17% of US online shoppers have abandoned a cart due to a 'too long/complicated checkout process'.
With faster conversion rates, Adyen’s business customers can expect greater retention, as evidenced by a 2024 Forrester Research survey which reveals that 68% of online shoppers are more likely to return to a retailer that offers a quick and easy checkout process.
A similar report by McKinsey & Company in 2023 indicated that improving the checkout experience can lead to a 35% increase in customer retention rates for e-commerce businesses.
This improvement in retention can have a significant impact on a company's bottom line, as increasing customer retention rates by just 5% can increase profits by 25% to 95%, according to research by Bain & Company.
The partnership between PayPal and Adyen, therefore, addresses a crucial aspect of e-commerce that directly impacts customer satisfaction, loyalty and ultimately, business profitability.
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