CHOOSING A PAYPAL PRODUCT An overview for PayPal partners 2008 PayPal Inc. All rights reserved. PayPal and the PayPal logo are registered trademarks of PayPal, Inc. Designated trademarks and brands are the property of their respective owners.
INTRODUCTION Remove barriers to online purchases Your customer needs a payment solution to accept and process payments on their website. Naturally, they want to make it as easy as possible for shoppers to buy items, and they want to minimize shopping cart abandonment. That means your primary goal is to help your customer remove barriers that might prevent a shopper from completing a sale. As you consider integrating payment solutions for your customers, keep in mind that PayPal has a solution for every merchant challenge. PayPal offers a wide range of products that can meet the needs of all sizes of web merchants, whether they need a full merchant account solution or just want to add PayPal payment capabilities to their website. These products not only stand up to the heavy load of busy websites, but can also integrate smoothly. In addition, when your merchant accepts PayPal, they can start attracting millions of PayPal account holders worldwide. PayPal account holders transact more than $8.1 billion through PayPal every quarter, and many of them strongly prefer paying with PayPal. 1 When you assist your merchants in selecting the right PayPal technologies, you ll help their online businesses thrive while also improving your relationships with them. 1 According to the November 2007 PayPal SMB Sales Lift Survey, 51% of respondents would not have completed a recent transaction if the merchant site had not accepted PayPal payments. 2
SELECTING THE RIGHT PAYPAL SOLUTION Deciding which PayPal solution to integrate is simple. First, find a solution that provides the features your merchant is looking for. Next, make sure you re comfortable with the technology involved. Let s examine four common merchant scenarios and identify the most appropriate PayPal product for each. Scenario #1 Scenario #2 Begin accepting online credit card payments as quickly as possible Minimize or avoid startup costs Build an all-in-one solution for accepting online, phone, fax, and mail payments Accept credit cards directly on their website and offer the fastest checkout available with PayPal Avoid the hassle of establishing separate relationships with an internet merchant account (IMA) provider, payment processor, and payment gateway Recommended Solution: Website Payments Standard Provides the easiest way to add credit card and PayPal processing to a website Does not require credit approval Allows merchants to integrate payment capabilities via a hosted checkout solution Recommended Solution: Website Payments Pro Delivers an all-in-one solution for processing credit card and PayPal payments for website, phone, fax, or mail orders Gives your merchant all the features of an IMA and payment gateway in one solution and at a low cost Lets your merchant use PayPal as their credit card processor while also adding PayPal Express Checkout as an alternate payment option Comes with Virtual Terminal which lets merchants accept phone, fax, and mail payments at no extra cost Requires credit approval 3
Scenario #3 Scenario #4 Add PayPal as an additional payment option Increase sales Improve conversion rates Access new customers Use gateways to process payments using an existing IMA Recommended Solution: Express Checkout Provides your customers with a fast checkout experience in as few as three clicks Improves conversion PayPal Express Checkout may enable an increase of 40% over typical shopping cart conversion rates 2 Attracts new customers by tapping into PayPal s network of 63 million active, account holders 3 Increases sales by an average of 14% Recommended Solution: Payflow Gateway Lets merchants transfer payments to an existing merchant account provider Comes with prebuilt connections to most leading payment processors Lets merchants offer Express Checkout Help your merchant boost sales: add PayPal Express Checkout as a payment option How can your merchants benefit by accepting PayPal payments on their websites? According to a 2007 PayPal survey of PayPal users who had recently made a purchase on one of 20 small to medium-sized business sites, 51% would not have completed their purchase if PayPal payments were not accepted. 4 Based on incremental buyer percentages and average sales order conversion rates, PayPal has determined that adding Express Checkout to a small to medium-sized business website can increase sales by an average of 14%. 5 2 MarketLive Performance Index, Q1 and PayPal internal data, March 2007. 3 According to a Q1 2006 PayPal phone survey of small and medium-sized businesses with at least $120,000 USD in annual sales online, adding PayPal as a payment option increased sales by an average of 14%. 4 PayPal SMB Sales Lift Survey, November 2007. The survey polled 5,812 users who had made purchases on one of 20 sites with annual volume of $25,000 to $10 million USD. 5 According to a Q1 2006 PayPal phone survey of small to medium-sized businesses with at least $120,000 in annual sales online, adding PayPal as a payment option increased sales by an average of 14%. 4
How it works Website Payments Standard Once Website Payments Standard has been added to your merchant s website, shoppers can click the Add to Cart or Buy Now button when they find the right product or service. From there, they go to a secure PayPal page to pay. If they pay with a credit card, they don t need to have a PayPal account they can simply fill in billing, shipping, and payment information. If they pay with PayPal, this information is already stored in their PayPal account. After checkout, all shoppers return to a confirmation page on the merchant s site. Website Payments Pro After Website Payments Pro has been integrated, shoppers can choose how to pay for their shopping cart items: with Pay- Pal or with a credit card. If they pay with a credit card, they fill in billing, shipping, and payment information on the merchant s website. If they use PayPal, this information is already stored in their PayPal account, and they can check out with as few as three clicks. In either case, PayPal securely processes the payment. Express Checkout Express Checkout provides shoppers with a fast, easy checkout process. After adding items to a shopping cart, shoppers click the Check Out with PayPal button. They log in to PayPal, where they can view their stored shipping and billing information. After they finish making any adjustments to their shipping or payment information, shoppers click Continue and return to the merchant s website to complete their order. The whole process takes just seconds. Payflow Gateway Payflow Gateway allows merchants to route transactions for approval and processing. It consists of two solutions: Payflow Link and Payflow Pro. With Payflow Link, shoppers place orders on customizable pages hosted by PayPal. With Payflow Pro, they securely make purchases through the merchant s website storefront. In either case, the shopper s information is encrypted and then securely routed through the network of processors and financial institutions. The transaction authorization from the shopper s bank is encrypted and sent back through the gateway, so that the merchant can review it. After the merchant decides to fulfill the order, the shopper s bank will credit the merchant account. How merchants benefit Website Payments Standard Website Payments Standard offers several advantages to merchants who are just launching their online business, or those wishing to expand without increasing their overhead. It allows merchants to accept credit card payments at a low pertransaction fee (with no set-up fee or monthly fee). Merchants who use Website Payments Standard (or Website Payments Pro) don t need a separate IMA which is usually required for accepting credit card payments and often involves a lengthy application and approval process. And shoppers don t need a PayPal account. With Website Payments Standard, merchants avoid the liability of protecting shoppers credit card data because shoppers enter this information only on secure PayPal pages. This flexible solution lets merchants accept payments for products or services, donations, subscriptions requiring recurring payments, and gift certificates. Merchants who need to process payments received by phone, fax, or email can use Virtual Terminal with Website Payments Standard for a monthly fee. 5
Website Payments Pro Website Payments Pro is an all-in-one solution. Merchants don t have to find an IMA, payment processor, and gateway and then set up agreements with several credit card companies. Instead, Website Payments Pro provides all these elements in one product, so merchants need only maintain a single payment processor relationship. Website Payments Pro can also help merchants improve their sales tracking, by letting them see their entire sales volume at once. And merchants just pay one low monthly fee to process all credit cards as well as phone, fax, and mail orders with this solution. Website Payments Pro also gives merchants greater control over the purchasing experience. By letting shoppers make credit card payments directly on their website, merchants increase their opportunities to provide special offers and bonuses after a sale. In addition, merchants who use Website Payments Pro may bring in more revenue: The solution includes Express Checkout, which can boost sales by 14%, according to PayPal s research. 6 With Website Payments Pro, when buyers choose to check out with PayPal, the process takes as few as three clicks. The result? Fewer abandoned shopping carts. Adding PayPal lets merchants tap into an enormous pool of convenience-seeking shoppers. Express Checkout According to PayPal s research, merchants who start accepting PayPal payments by implementing Express Checkout may see an increase of 40% over typical shopping cart conversion rates, 7 as well as a 14% increase in overall sales. 8 Why? Avid PayPal users who comparison-shop on several websites are more likely to buy from the merchant that accepts easier, safer PayPal payments. By eliminating steps from the payment process, Express Checkout lets shoppers move more quickly through online checkout. Many merchants find that this reduces the rate of cart abandonment. Merchants interested in cross-selling and up-selling products appreciate Express Checkout because their shoppers return to the site after they complete the payment process with PayPal. Express Checkout also helps streamline the checkout experience. Another key benefit: Express Checkout helps protect your merchant s profit margins. It requires no set-up fee, no monthly fee, and has low per-transaction fees. Payflow Gateway With PayPal s flexible Payflow Gateway solution, merchants can make all the right choices for their business. Merchants can improve the shopping experience by customizing the PayPal-hosted checkout page, or maintain a greater level of control by using Payflow Pro to keep the entire purchase process on their own website. Payflow Link and Payflow Pro both protect transactions using 128-bit SSL encryption, and meet the high standards of card associations such as the PCI DSS, MasterCard s SDP program, and SAS certification. The two solutions include Virtual Terminal, which lets merchants accept payments by phone, fax, or mail. They also include PayPal Manager, which makes life easier by letting merchants approve or reject orders, issue refunds, and run reports from one web-based tool. And Payflow Link and Payflow Pro both allow merchants to add optional features such as fraud protection, recurring billing services, buyer authentication, and Automated Clearing House (ACH) transactions. 6 According to a Q1 2006 PayPal phone survey of small and medium-sized businesses with at least $120,000 USD in annual sales online, adding PayPal as a payment option increased sales by an average of 14%. 7 MarketLive Performance Index, Q1 and PayPal internal data, March 2007. 8 According to a Q1 2006 PayPal phone survey of small and medium-sized businesses with at least $120,000 USD in annual sales online, adding PayPal as a payment option increased sales by an average of 14%. 6
Find more information at PayPal Partner Program This paper provides an overview of the PayPal solutions available to you and your merchants. You can explore many more tools at the PayPal Partner Program website. There, you can: Download the PayPal Partner Marketing Tool Kit, which is designed to help you promote PayPal to your merchants. The kit provides email templates, customizable ad banners, success stories, product demos, and landing page templates. Access past and current PayPal webinars, and find out about upcoming webinars that may be of interest to you. Learn about the new Revenue Share structure for PayPal Partner Program participants. Become eligible to get listed and featured on PayPal s revamped Solutions Directory. Visit www.paypal.com/partnerprogram to enroll and get more information. 7