Finally Paypal's New Two Click Checkout

by jbode
23 replies
Hey just found this news story about PayPal developing a new 'two click' checkout process.

Sam Shrauger, PayPal's vice president said, "The decision to purchase digital goods and content usually happens on impulse, so the act of paying needs to be as quick as that impulse."

Here's the news story
PayPal, Facebook Team on Micropayments Service - Web Services Web 20 and SOA from eWeek
#checkout #click #finally #paypal
  • Profile picture of the author Caleb Spilchen
    The fees there are not that awesome.

    Caleb
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    • Profile picture of the author craigc1980
      I would have to agree with Caleb

      Will it actually be worth the fees?

      Maybe or Maybe not
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      • Profile picture of the author Caleb Spilchen
        Originally Posted by craigc1980 View Post

        I would have to agree with Caleb

        Will it actually be worth the fees?

        Maybe or Maybe not
        And I really love how paypal is trying to make money off the buy on impulse... Even more way for people to waste there money, I would rather a customer, who wants my product, rather then one who regrets it later. Imagine if they made it harder to check out, refund rates would go down, right?

        Caleb
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        Canadian Expat Living in Medellin, Colombia

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        • Profile picture of the author aritrim
          Originally Posted by Caleb Spilchen View Post

          And I really love how paypal is trying to make money off the buy on impulse... Even more way for people to waste there money, I would rather a customer, who wants my product, rather then one who regrets it later. Imagine if they made it harder to check out, refund rates would go down, right?

          Caleb
          Definitely!!

          Some products require a checkout page with a basic IQ test. Will lower down refunds more.
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        • Profile picture of the author Black Hat Cat
          Banned
          Originally Posted by Caleb Spilchen View Post

          And I really love how paypal is trying to make money off the buy on impulse... Even more way for people to waste there money, I would rather a customer, who wants my product, rather then one who regrets it later. Imagine if they made it harder to check out, refund rates would go down, right?

          Caleb
          Was this a parody post?
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  • Profile picture of the author Geek3
    Ha... anything to help with impulse buying.. not sure if that's such a great thing in terms of the fees it will bring, but I know it's the right course for them. Impulse buying is what helps my industry move forward.
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  • Profile picture of the author Rus Sells
    This move does not seem to be focused on "our" type of digital products but more for people who are buying credits for gaming, or did I read the article incorrectly?
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  • Profile picture of the author Canada
    Don't they already have this micropayments thing? Or is it just that they're going to make the process quicker?
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  • Profile picture of the author jbode
    @Rus No that's what Facebook is using the paypal micropayment platform for, but it's not limited to just those kind of purchases.

    @Canada From what I understand they are making the process quicker 'two clicks' as stated in the article.

    From a buyer standpoint... I like it, faster and easier is good

    From a seller standpoint... I'm betting conversions will increase, if your product is good then refunds shouldn't be much different in my opinion.
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    • Profile picture of the author JohnMcCabe
      Originally Posted by Caleb Spilchen View Post

      And I really love how paypal is trying to make money off the buy on impulse... Even more way for people to waste there money, I would rather a customer, who wants my product, rather then one who regrets it later. Imagine if they made it harder to check out, refund rates would go down, right?

      Caleb
      Caleb, you're assuming that all buyers share your views of what is or isn't a waste of money, and that isn't realistic. What you look at as people "wasting their money", others might consider a fun splurge.

      Game credits would be one splurge, as would things like music downloads and other low-priced goods.

      PayPal doesn't, and shouldn't, be making judgments on the merits of a purchase. That's not their job. Their job is to facilitate the transfer of money between two parties, and to generate fees for providing that service.

      If they made checkout harder, I doubt it would change refund rates at all. It might depress the raw number of refunds, which would be abandoned carts and aborted purchases instead...
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      • Profile picture of the author Caleb Spilchen
        Originally Posted by JohnMcCabe View Post

        Caleb, you're assuming that all buyers share your views of what is or isn't a waste of money, and that isn't realistic. What you look at as people "wasting their money", others might consider a fun splurge.

        Game credits would be one splurge, as would things like music downloads and other low-priced goods.

        PayPal doesn't, and shouldn't, be making judgments on the merits of a purchase. That's not their job. Their job is to facilitate the transfer of money between two parties, and to generate fees for providing that service.

        If they made checkout harder, I doubt it would change refund rates at all. It might depress the raw number of refunds, which would be abandoned carts and aborted purchases instead...
        Never thought about it that way.

        But, more check outs is more to PayPals bottom line, which is what I'm sure they care about most.

        Caleb
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        • Profile picture of the author JohnMcCabe
          Originally Posted by Caleb Spilchen View Post

          Never thought about it that way.

          But, more check outs is more to PayPals bottom line, which is what I'm sure they care about most.

          Caleb
          And somehow this is a bad thing? Last time I checked, PayPal was a card-carrying for-profit business, not a charity...
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        • Profile picture of the author Rob Howard
          Originally Posted by Caleb Spilchen View Post

          Never thought about it that way.

          But, more check outs is more to PayPals bottom line, which is what I'm sure they care about most.

          Caleb
          Caleb, I'm no fan of paypal either - necessary evil in most cases...

          With that said, I'm sorry, but this is a ridiculous statement. Of course they care most about their bottom line - they're a business.

          I would hope that you, as a business owner, also care about your bottom line.

          Rob
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          • Profile picture of the author Caleb Spilchen
            Originally Posted by ccmusicman View Post

            Caleb, I'm no fan of paypal either - necessary evil in most cases...

            With that said, I'm sorry, but this is a ridiculous statement. Of course they care most about their bottom line - they're a business.

            I would hope that you, as a business owner, also care about your bottom line.

            Rob
            The way I said that was not the way that you guys are taking it. What I meant by it Rob, was that they care about there bottom line, and so if I was paypal, I would probably do the same thing to boost my business, I apologize if what I said was not taken as what I meant. I'm trying

            Caleb
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            Canadian Expat Living in Medellin, Colombia

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            • Profile picture of the author Rob Howard
              Originally Posted by Caleb Spilchen View Post

              The way I said that was not the way that you guys are taking it. What I meant by it Rob, was that they care about there bottom line, and so if I was paypal, I would probably do the same thing to boost my business, I apologize if what I said was not taken as what I meant. I'm trying

              Caleb
              Oh, ok!

              Rob
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  • Profile picture of the author ezimedia
    HI

    This will really help my new classifieds sites.. for ppl that do not want to pay for ads over $12... so it is good for me..
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  • Profile picture of the author paulie888
    This move makes sound economic sense for Paypal, especially in light of the fact that they're trying to pander to Facebook which is apparently their largest marquee customer. The products in question here are most likely very inexpensive, digital impulse purchases that are bought without a second thought.

    All the top-tier customers listed in the article are pretty big web properties that rely on volume, and they are probably not concerned with the increase in fees for this new "two-click" payment system as ultimately all they want is to make the checkout process as quick and painless for the customer as possible, therefore increasing sales. The items involved (things such as digital media and credits on Facebook) typically cannot be refunded, so that is the least of their worries.

    Paul
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  • Profile picture of the author Zeus66
    Paypal powers-that-be I'm sure crunched the numbers on this before announcing it. The uptick in refunds this might cause (impulse buyers become buyer's remorse types) must be offset and then some by the anticipated increase in overall profits this will afford them.
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    • Profile picture of the author paulie888
      Originally Posted by Zeus66 View Post

      Paypal powers-that-be I'm sure crunched the numbers on this before announcing it. The uptick in refunds this might cause (impulse buyers become buyer's remorse types) must be offset and then some by the anticipated increase in overall profits this will afford them.
      I'm sure that the majority of these digital products are digital media and credits, and typically they're not refundable. So for the most part they're just increasing their bottom line due to the increase in impulse purchases, which this new two click system is designed to facilitate.
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  • Profile picture of the author theIMgeek
    I've yet to play with the MicroPayments system from PayPal because they require you to set-up a seperate account for it. (and last I checked, it was only available to US businesses)

    I'm looking forward to the day you can run both micropayments and regular through the same account... except that would mean waiting fo PayPal to actively choose to charge less transaction fees... so I'm not holding my breath.

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  • Profile picture of the author jointaldc
    Originally Posted by jbode View Post

    Hey just found this news story about PayPal developing a new 'two click' checkout process.

    Sam Shrauger, PayPal's vice president said, "The decision to purchase digital goods and content usually happens on impulse, so the act of paying needs to be as quick as that impulse."

    Here's the news story
    PayPal, Facebook Team on Micropayments Service - Web Services Web 20 and SOA from eWeek
    The VP basically said it there, that because people are impulsive on buying things, they want to capitalize on that impulse and charge those fees. He's just capitalizing on peoples buying emotions, smart, but kinda hurts the content makers, because even though some people are impulsive, the fee could make them think back on level ground.
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