Will 2016 be the year checkout conversion rates increase?

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Last week we covered PayPal’s One Touch service – which according to the company now boasts over 10 million users, just six months after it was launched. The service asks users to enter their personal and financial details just once with all following transactions being automatically authenticated with one click.

 

Check it out

In the article, we mentioned that the arena of conversion is simmering with various competitors – including Visa, which coincidentally also has over 10 million users – all vying to provide consumers with the holy grail of a seamless checkout experience. Now, the payments giant actually published new data regarding its own quick checkout service, Visa Checkout.

The data comes from research conducted by comScore, which found that enrolled customers have completed 86 per cent of transactions, and more importantly, have a 51 per cent higher conversion rate when compared to customers using a merchant’s traditional online checkout.

Interestingly, faster checkout not only keeps customers coming back, but also attracts new ones as more than 46 percent of customers who took advantage of a Visa Checkout promotion were new to that retailer. However, it should be noted that that data comes from survey of just six Visa Checkout merchants.

We are seeing tremendous Visa Checkout growth as we enter 2016 and are greatly encouraged by the enthusiastic response from consumers and merchants alike,” said Sam Shrauger, senior vice president of Visa’s Digital Solutions. “By re-engineering the Visa card for the digital world, we’re delivering a better way to pay through connected and mobile devices,” she continued.

 

Visa focusses on mobile

Visa’s data also highlighted some interesting data about mobile. According to the company, its Checkout customers are increasingly making purchases on mobile. Nearly half (45 per cent) of them used a smartphone, tablet, or other mobile device in making an online purchase during the 2015 holiday period. Just six months ago, it was closer to one-third. Between July and November, the share of Visa Checkout customers using a mobile device grew by 10 percent.

 

Companies making effort to tackle low conversion rates

As Visa points out, “Checkout abandonment rates have been an ongoing challenge for merchants trying to increase sales in digital channels, particularly on smaller screens of mobile phones”. However, it seems that many companies are finally coming round to tackling the issue as US corporations such as Starbucks, Walgreens, NFL Shop, HSN and Match have all integrated Visa’s service.

“Delivering a seamless payment experience for our customers is a priority for us,” said Ryan Records, vice president of Starbucks Global Card, Commerce & Payment. “Integrating Visa Checkout as a way to reload your Starbucks card in our world-class digital platforms is a great way to provide our customers with the reload options that are most convenient and relevant to them,” he added.

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