ProductPayPalInnovation
November 17, 2020 | Marcy Campbell, GM & VP of North America, Australia Sales & Global Sales Operations
According to McKinsey & Company, U.S. ecommerce penetration has seen 10 years of growth in three months alone1. At PayPal, we’ve seen these changes firsthand as our merchants shift their focus to omnichannel experiences to match consumer buying behaviors.
However, traditional customer engagement and brand building tools are no longer enough to keep up with competition and stand out from the crowd. As brands continue to pivot their business to adapt to the new normal, payments partners are increasingly seen as a key strategic asset in the arsenal of CEOs, CMOs and the broader C-suite across the globe. In addition to needing a payments processor and support at checkout, merchants who are looking for new ways to engage and grow relationships with their customers are turning to PayPal to help with loyalty solutions, targeted offers and brand building. By leveraging our Shopping tools such as Store Cash and Honey Offers, PayPal can help merchants identify, engage and convert potential lost shoppers and turn them into loyalists.
The trends driving PayPal’s enterprise merchants include reimagining the digital footprint, planning for the re-emergence of in-store buying, and bolstering online marketplaces.
Reimagining the digital footprint
For many of our enterprise merchants, the last several months have served as an opportunity to reimagine their digital footprint and revisit their online experience to ensure customer satisfaction is always front and center.
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Gap Inc. customers shopping online at the Gap, Banana Republic, Old Navy, Athleta, Intermix, and Janie and Jack, can now use PayPal when checking out.
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As one of the most visible meal delivery services with 45% of the U.S. market share, DoorDash is now offering U.S. customers the ability to checkout with PayPal. This includes DoorDash’s recently introduced DashMart, a new type of convenience store that delivers household essentials to customers’ doorsteps.
With Gap Inc. and DoorDash, we’ve worked closely to create a seamless and simple checkout experience for consumers online by offering customers the flexibility and power to choose how to pay.
Planning for the resurgence of in-store
We are always thinking about how to help prepare our merchants for the next phase of their evolution. For many, this includes blending the simplicity of online shopping with the touch and feel of the physical world, blurring the lines between the two forums to create the ultimate customer experience. In the case of CVS Pharmacy, Best Buy and the Phoenix Suns, that also includes safe transactions in-person.
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In July, we announced CVS Pharmacy as the first national retailer to integrate PayPal and Venmo QR code technology in its checkout experience at all 8,200 standalone stores across the country. Through PayPal’s partnership with payments technology company InComm, shoppers will be able to securely pay for their items without needing to touch a keypad or sign a receipt.
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We’ve seen several merchants shift to a buy online, pick-up in store (BOPIS) model, including Best Buy who offers PayPal as a checkout option. By offering the option to place an order online or through mobile, Best Buy can provide safety and peace of mind for both consumers and employees.
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With the Phoenix Suns, we’ve been able to reimagine the arena experience working in partnership with the organization to integrate PayPal into the Official Suns Mobile App so fans can make quick and safe touch-free payments from their seat, or at the point of sale. As the Phoenix Suns plan for safe re-entry into the Talking Sticks Arena, having a touch-free environment can put the Suns ahead of the game.
In a study with PYMNTS commissioned by PayPal, we found 57% of consumers surveyed say merchants’ digital payment offerings impact their willingness to shop in their stores and one-third of respondents would not consider making purchases in a physical store without digital payments3. This further emphasizes the importance of a touch-free or digital experience.
Doubling down on our marketplace efforts
Marketplace partnerships allow us to reach new merchants and provide existing merchants with expanded access to best in class tools and services. Some of the latest enhancements to our marketplace partnerships include Google, Facebook Shops and Instagram.
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We’ve had a long-standing partnership with Google, including facilitating payments with Google Play, integration into Google Pay and many others. This year, we expanded our partnership to enable sellers to link their existing PayPal accounts to Google and use PayPal for payment processing when they sell products directly on Google. To date, we’ve seen a significant number of small business merchants link their accounts to Google, helping to improve their business performance and expand their network.
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With the holiday shopping season approaching, PayPal’s checkout integration for Shops and Instagram will help businesses and consumers better connect and transact. Consumers can checkout directly in the apps without having to leave either platform, and small businesses can take advantage of this already established social infrastructure and help increase conversion.
What’s next?
These new and expanded partnerships with Gap Inc., DoorDash, CVS Pharmacy, Best Buy, Phoenix Suns, Google, Shops and Instagram are all examples of how we are working with merchants to reimagine what’s possible with payments and to help provide a superior customer experience in an omnichannel world. If you need help reimagining your payment experiences, visit our enterprise website to learn more.
[1] Bank of America; Forrester Analytics; ShawSpring Research; US Department of Commerce; McKinsey analysis
[2] Forrester; State Of Alternative Payments Acceptance In US Retail
[3] PYMNTS and PayPal commissioned report, How We Shop: Measuring The Rapid Digital Shift