PayPal May Increase Consumers’ Willingness To Buy From New Businesses
Consumers may be more willing to buy from new businesses if PayPal is an accepted payment option, according to a new study from Ipsos.
In a simulated scenario, 52% of PayPal users were willing to buy from an unfamiliar business with PayPal as a payment option, compared to 24% when PayPal was not an option. Consumers were also more willing to make cross-border purchases (62% vs. 35%) and purchases valued $200 or more (61% vs. 34%).
These numbers drop slightly when surveying non-PayPal users. Among non-users, 37% were willing to shop with an unfamiliar business with PayPal present, compared to 25%.
Ipsos also surveyed consumers on their checkout experience. Nearly half (47%) of consumers said they would return to a store if they liked the payment process, and 44% were more willing to trust merchants with a good payment process. In addition, 30% of consumers said they only shop on websites that accept their preferred payment method, and 44% said they would like to know if their preferred method was accepted upfront.
In terms of what consumers are looking for in a payment processor, security was the top priority (83%). That was followed closely by purchase protection (71%), smooth purchasing process (69%) and simplicity (65%).
The survey assessed 10,500 people across seven markets. Of those participants, 6,930 were PayPal users.