PayPal Extends One Touch Payments to Web

By Sam Gopal | 29 Apr 2015

PayPal has extended on One Touch for mobile capability to include web, allowing customers to pay for goods across sites that accept PayPal with a single log in.

Payments giant PayPal wants to reduce the friction found in paying for goods online by rolling out seamless, one-touch payments across the web, letting customers checkout from a merchant’s website without having to enter in their user ID and password again. The system, called One Touch for Web, is an expansion of PayPal’s earlier efforts on mobile.

Last year, PayPal allowed for one-touch payments on phones running Apple’s iOS and Google’s Android operating systems, allowing users to log in once with PayPal to pay for goods across different mobile apps, providing an easier way for consumers to shop and pay for goods on mobile devices. This week, PayPal extended on this capability with web, allowing customers to pay for goods across millions of websites that accept PayPal with only a single log in.

Now, if you log in to an e-commerce site and use PayPal, you’ll be prompted to enter your username and password to use your credit or debit cards on file. After that log in, any other attempt to purchase an item on the web using PayPal will proceed with only a one-click confirmation of the purchase, with information stored and shared between supported apps.

It’s believed that by reducing the need to keep re-authenticating with PayPal, customers will spend more. Lyft, an on-demand transportation service, reported it doubled its conversion rate on PayPal since it enabled one-touch functionality on its mobile apps in March. StubHub, the eBay-owned ticket marketplace, reported a double digit increase in sales.

One Touch was a mobile-first product due to the huge fall-off in mobile conversions, because entering in information on smartphone’s small screens is even harder than it is on desktop. With more than half of e-commerce shopping experiences taking place on mobile devices, but only 10 to 15 percent of purchases occurring on mobile, the complicated nature of mobile checkout necessitated the need for One Touch on mobile.

Despite mobile commerce growth, payments made on the web still accounts for the majority of e-commerce, therefore launching one-touch payments for websites is a massive opportunity.

On mobile, the platform was built using technology from PayPal acquisition Braintree, and is found in a number of applications including those from Jane.com, ParkWhiz and ThreadlessAirbnb and Munchery.

“For the millions of merchants that use Paypal, the majority of them won’t have to do any extra work to get this,” said Bill Ready, the Senior Vice President of Merchant & Next Generation Commerce at PayPal told TechCrunch. “This will just work.”

In total, 165 million PayPal customers will soon be able take advantage of the new feature, the company says.

The future is looking bright for PayPal as an independent company, as the payments giant prepares to spin-off from parent company eBay. In the first quarter of 2015, PayPal saw payment volume rise 18 percent to US$61 billion, with the number of transactions using PayPal growing 24 percent to over one billion, and 3.6 million new active accounts in the quarter. Mobile, is a key growth area, with payments through PayPal on phones up 40 percent year-over-year and representing 30 percent of all PayPal transactions.

The launch of One Touch for web comes at a time when rival payments platform Stripe has made serious advances in acquiring customers of its own, in some cases, away from PayPal. The company says it now processes billions of dollars annually for businesses including well-known web brands like Rackspace, Shopify, Reddit, Foursquare, Dailymotion and others. It’s also powering marketplaces via Stripe Connect for companies like Lyft, Kickstarter, Indiegogo, TaskRabbit, Fancy and more. Plus thousands of apps have integrated Stripe APIs and payment service, including Twitter and Facebook.

PayPal’s OneTouch for Web has arrived in the US but will expand internationally in the months ahead, and the system will be automatically enabled for most of PayPal’s current merchants.

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