Increase Your Revenue by Speeding Up Checkout
December 6, 2018
This article is part of our ongoing Mobile Optimization Initiative series designed to help Magento merchants close the mobile revenue gap.
These days, store owners are constantly looking for ways to make their customers happy and increase their site’s revenue at the same time, but it’s not always easy to know where to start and best practices change as quickly as the technology does. The difference between a completed order and an abandoned cart can be a matter of milliseconds.
Our experiences in the Mobile Optimization Initiative have shown us that removing barriers to mobile shopping, especially at checkout, are critical to conversion. The experiments show that PayPal Express Checkout and PayPal Credit really do make a difference.
PayPal Express Checkout + Credit is a feature included in the native PayPal Express Checkout module included in your Magento installation. With PayPal Credit, merchants still get paid upfront just like a traditional PayPal purchase, meaning there is no additional financial risk associated with offering credit. It also offers interest-free financing on orders over $99, combined with the ease and speed of checking out with PayPal.
Why we tested PayPal Express Checkout and PayPal credit:
25% of Millennials currently use online credit when shopping online
53% of PayPal Credit users said they would not have made their most recent purchase if the credit option was not available
21% of PayPal credit users said they spent more online because the credit option was available
PayPal Express Checkout A/B Testing Findings
The data from the Mobile Optimization Initiative test shows a study-wide average of an 8.72% increase in RPV for sites that injected PayPal into their shopping cart. Our clients that participated in the study actually saw even better stats with an average conversion rate increase of 20% and a revenue per visit increase of over 13%. I always knew adding PayPal to a site was a no-brainer to a site’s increase in revenue and conversion rate, but I must say I was rather shocked by these results!
PayPal Credit A/B Testing Findings
We also tested adding the PayPal Credit option to the PayPal Express Checkout payment method. We saw even better numbers for this test. Our clients saw an average conversion rate increase of 26.5% and revenue per visit increase of 18.25%! From our findings, if you are going to turn on PayPal Express Checkout, you need to also turn on PayPal Credit.
How To Enable PayPal Credit On Your Magento Store
Log into your Magento account and go to your Magento Admin Panel
Stores>Configurations>Payment Methods
Go to PayPal Express Checkout and select Configure
Within Required Settings under Enable PayPal Credit select Yes
If desired, select your PayPal Credit banner placement for home, category, product, and cart pages
Check your website for confirmation. The PayPal Credit button (and banners) should now be live
About Ross Richard and IWD Agency
Ross Richard is the Director of the R&D department at IWD Agency. He manages IWD’s entire product line of Magento extensions. IWD is an eCommerce agency located in Baton Rouge, Louisiana. Specializing in Magento development, their expert team of eCommerce specialists provide quality eCommerce, B2B, and marketing solutions for brands looking to expand their online presence.