WisdomInterface
WisdomInterface
August 30, 2024
1 min read

The Total Economic Impact™ Of PayPal Checkout

The analysis evaluates the financial impact of implementing PayPal Checkout for organizations, showing increased conversion rates, higher average order values, customer retention, and reduced payment acceptance costs.

Key Insights

  • Over three years, the increased conversion rate of 1 percentage point is worth $28.2 million in profit to the composite organization.1
  • Over three years, the incremental profit from increased PayPal Checkout average order value (AOV) is worth $8.5 million. This is the result of an increased PayPal Checkout AOV of 10% compared to the AOV with traditional payments.1
  • The increased customer retention is worth $1.3 million over three years, as customers purchase more frequently with PayPal Checkout compared to traditional methods.1
  • Over three years, avoided credit card processing fees amount to over $24.1 million.1

1Forrester, commissioned by PayPal, “The Total Economic Impact of PayPal Checkout”. December 2023. The merchant used as the basis for this study a North America-based retail merchant with global operations and $5 billion in annual revenue. The average order value (AOV) with traditional PayPal checkout is $77, and with PayPal Pay Later is $104. Individual results may vary.

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