Hi Jeremy — author of productgrowth.in and thank you for flagging the missing sources in the post. I've just refreshed the article with april figures and also shared the breakdown of the 92-96% range. Since there are no public numbers available, i study the industry for my clients and that helps create these ballpark figures.
Fully agree with your broader point that conversion-rate comparisons across A2A / cards / open banking are messy without standard definitions.
Jeremy this may be the first time we don't align completely. The CMOs I've spoken with said uniformly that "increased optinoality [of payment methods] does not equate to increased conversions" in fact the opposite is true. Top conversion priorities amoung the MRC retailers I've spoke with are #1 ShopPay, #2ApplePay and #3Link. Many are actually contemplating taking off PayPal checkout for new customers (making it avail only to past users) due to cost. Just sharing.
Tom - many thanks for the feedback and insight, really useful. It illustrates that optimising checkout is a complex problem. Three observations 1.) payments at retailers used to sit in finance/treasury, the fact that CMOs are engaged demonstrates their increasing strategic importance today 2.) the three methods you highlight all have great UX due to stored credentials and/or biometric tokenised checkout which take out friction and I assume have great conversion (Apple's new online QR checkout is fantastic) 3.) a corollary to generating incremental sales is to avoid losing sales e.g. by discontinuing a payment method - removing a method like PayPal needs to be done carefully!
Also, too many payment methods increases overlap of customers i.e. payment method redundancy which is unnecessary, while too much choice itself creates checkout friction. I can see why retailers would want to drop older methods like PayPal with comparatively higher friction (redirects) especially when it is so much more expensive. It's a fascinating topic.
Hi Jeremy — author of productgrowth.in and thank you for flagging the missing sources in the post. I've just refreshed the article with april figures and also shared the breakdown of the 92-96% range. Since there are no public numbers available, i study the industry for my clients and that helps create these ballpark figures.
Fully agree with your broader point that conversion-rate comparisons across A2A / cards / open banking are messy without standard definitions.
Appreciated the citation. Cheers :)
Jeremy this may be the first time we don't align completely. The CMOs I've spoken with said uniformly that "increased optinoality [of payment methods] does not equate to increased conversions" in fact the opposite is true. Top conversion priorities amoung the MRC retailers I've spoke with are #1 ShopPay, #2ApplePay and #3Link. Many are actually contemplating taking off PayPal checkout for new customers (making it avail only to past users) due to cost. Just sharing.
Tom - many thanks for the feedback and insight, really useful. It illustrates that optimising checkout is a complex problem. Three observations 1.) payments at retailers used to sit in finance/treasury, the fact that CMOs are engaged demonstrates their increasing strategic importance today 2.) the three methods you highlight all have great UX due to stored credentials and/or biometric tokenised checkout which take out friction and I assume have great conversion (Apple's new online QR checkout is fantastic) 3.) a corollary to generating incremental sales is to avoid losing sales e.g. by discontinuing a payment method - removing a method like PayPal needs to be done carefully!
Also, too many payment methods increases overlap of customers i.e. payment method redundancy which is unnecessary, while too much choice itself creates checkout friction. I can see why retailers would want to drop older methods like PayPal with comparatively higher friction (redirects) especially when it is so much more expensive. It's a fascinating topic.