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Right now we only accept payment by Debit or Credit Cards. We see a lot of customers getting to the cart confirmation and then not completing the order. I personally feel this is because the page looks like too many inputs, too much work and contrasts the easy navigation of the rest of our website. Adding Paypal would replace our card details and address boxes with a link through to PayPal offering them a simpler (and faster) way to pay.

Are there any studies which show adding another payment processor (Such a Paypal) increases UX by speeding up the process in a way that they are more inclined to complete the purchase?

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First do you have wish list or some other method for customers to group items they are interested in? Second have you compared your cart abandoment to any published baymard.com/lists/cart-abandonment-rate rates to see what side of the norm you are on? –  James Jenkins Nov 20 '13 at 17:47
    
We're about 75-80% so I guess we're well within the normal level, it'd be nice to see if we can push it down a tiny bit though, thanks! –  Jamie Taylor Nov 21 '13 at 9:18
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up vote 5 down vote accepted

I don't know of any reliable research but:

  • these guys report 33.7% increase in conversion rate after adding paypal.
  • a comment for this article suggests it works.
  • so does this blog.
  • a cautionary note is in this article which is really worth reading if you are to replace current methods with paypal (not a good option - you better add it).

But seems to me most logical that adding paypal would increase conversion rate. While the problem might be elsewhere, adding paypal should not drop conversion rate, and to be frank - it is rather easy to implement and you can tell for yourself by trying it (and would be nice if you report back results).

Personally, I always use paypal checkout when available because all I need is to type my password and the merchant gets none of my card details (increased security). It simplifies the payment procedure and reduces the steps required to complete the purchase. While probably not many exit because of the lack of a paypal option, it is the extra steps you need to go through where users exit.

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It seems to me that your own question is contradicting itself.

Namely, you say:

Adding Paypal would replace our card details and address boxes with a link through to PayPal offering them a simpler (and faster) way to pay.

But then you ask:

Are there any studies which show adding another payment processor (Such a Paypal) increases UX by speeding up the process in a way that they are more inclined to complete the purchase?

Basically, adding, yes, if done properly. Replacing, I'd wager not just no… Hell no!

PayPal is used quite widely, but there's a very vocal set of anti-PayPal users around, alongside a set of users who cannot be bothered to (or don't know how to) sign up with PayPal.

Keep these additional consideration in mind:

Firstly, or so it did last I checked, PayPal only ever allows you to use a credit card once without creating an actual account. Because, it gets tied to an account in the background, but that account is not associated to an email — i.e. you cannot get the password reset. Speaking personally, I got burnt by this at least twice when trying to make a purchase, and I lost a few customers myself over the years due to PayPal disallowing them to re-use their card. (Things might have changed since, but I've very little faith that it did.)

Secondly, letting PayPal manage your checkout/authorize/capture/chargeback/refund process is a mess of biblical proportions, unless you're in the business of shipping physical things using FedEx. Anything short of that is subjected to random capriciousness, and not just by customers; also by PayPal itself. Your funds get randomly locked for weeks on end because your business is unusually active over the WE, customers receive your product and get a non-appealable refund directly from PayPal, you name it. It's ugly, the seller is always on the receiving end, and getting someone from PayPal on the phone is about as easy as getting the President of the USA.

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Sorry, I phrased the question wrong, I meant it would allow the customer to replace the long card process with a simple PayPal login. I'm aware of the issues with PayPal and have even experienced them first hand. Years ago (Before I joined the company) We used PayPal and the only reason we left was because of the fees. As far as Charge-backs go, I realize they have a shitty system. Unfortunately they also almost have a monopoly on "e-money". –  Jamie Taylor Nov 21 '13 at 12:48
    
Fair enough. Btw, if you've a "long card process" that you intend to augment by offering "a simple PayPal login" in addition, it might also mean that your card process needs to be revisited somewhat. Not saying that adding PayPal will hurt, of course. It never does, in my own experience. Just suggesting that fixing the "long" card process might yield returns as well. –  Denis Nov 21 '13 at 12:53
    
Oh yes, of course, I've mentioned suggestions to my boss about removing a few steps or clearing up a few things. We're not just going to leave it as is :) –  Jamie Taylor Nov 21 '13 at 14:28
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Adding paypal and keeping current debit/credit cards available won't decrease it, worst case scenario people won't choose it and stick to what they know. Yet, I always choose paypal when shopping because I can use it internationally. Last month, I was in the US and wanted to do some online shopping, I look up in google sfor some stores and some pages didn't take my order unless I have a us billing address,regardless if I wanted to pick it up on store, or ship to the US. With paypal, I was able to do it. So, personal no-study-to-back-up opinion: Its easier for me, if its not a very well known brand it gives me more confidence and I know its going to be accepted worldwide. Not sure how much international shoppers mean to you.

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We currently don't ship internationally but I do think you've hit the nail on the head with the trust issues, thanks! –  Jamie Taylor Nov 22 '13 at 8:35
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That question can be asked in this manner: does not offering the PayPal payment solution make a business lose sales ?

I conducted an experiment where people had to select a payment method to complete their order, or cancel their order if no method suited them. The available methods were: bank cards (all of them), Google Checkout, Amazon Payments and wire bank transfer.

72% chose bank cards
12% chose Amazon Payments
9% chose Google Checkout
4% cancelled the order
3% chose wire bank transfer

So the answer is yes, but it all depends on what you sell, to whom, where and how.

An important note about the trust factor: lack of trust must not be palliated by the payment method. If your customers think "I'll use PayPal so that if they try to scam me I'll get a refund" then you have failed your mission as customers should never ever think you could scam them or that there is some sort of risk.

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