PayPal Users Are More Likely to Complete Their Purchases

April 30, 2018, Written By John H. Oldshue
PayPal Users Are More Likely to Complete Their Purchases

According to a new study from PayPal and comScore, online shoppers are more likely to complete their purchases when using PayPal. The analysis showed PayPal users had an 88.7% conversion rate, compared to 55.3% for digital wallets and 48.7% for all other payment types.

Conversion rates are used in many industries to measure when a “lead” or potential customer turns into a buyer. For this study, comScore defined the conversion rate from “the point when consumer selects a payment type to completion of purchase within the same browsing session.” The results showed consumers who select PayPal are significantly more likely to finalize their purchases.

The study included payments made through PayPal Express Checkout, PayPal Mark, and PayPal One Touch, as well as Chase Pay, Apple Pay, MasterPass, Visa Checkout, and direct debit or credit card transactions.

One of the growing concerns among online retailers is cart abandonment. This occurs when a shopper adds items to their cart but leaves the site before completing the purchase. PayPal’s conversion rates show that PayPal users have lower cart abandonment rates.

But why is that?

There are a few reasons why PayPal shoppers could be more likely to convert than other shoppers. It may be a matter of trust. Customers feel safe paying through PayPal even if they are unfamiliar with the website from which they are making a purchase. If the website turns out to be fraudulent, PayPal will, in most cases, dispute the charges and refund the money. PayPal also acts as a middleman between the merchant and the customer, preventing the merchant from storing the shopper’s credit or debit card information.

Many mobile wallets provide that same level of safety for their customers. This likely explains why digital wallets had a higher conversion than credit or debit card payments. PayPal’s longstanding presence online could help explain why its conversion rate is higher than the rate for mobile wallets. PayPal has been around well before Apple Pay and Samsung Pay came to fruition.

The information contained within this article was accurate as of April 30, 2018. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About John H. Oldshue

John Oldshue is the creator of He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for
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