More than half of the top online retailers offer PayPal’s One Touch payments system on their web storefronts and apps, re/code reported. PayPal launched the product a year ago using technology from Braintree, a startup it bought out in 2013.
According to a PayPal blog post, “One Touch is the biggest change to online shopping in more than a decade. It is a faster, safer way for consumers to check out at merchant sites, whether in mobile apps, on mobile web or online – across platforms and payment types.” In fact, the post states, “One Touch has led to a 50 percent or greater improvement in conversion of PayPal on mobile and we believe ushers in a major upgrade in the way consumers and merchants will connect in the coming decade.”
To use One Touch, consumers enter their PayPal user names and passwords on a device, which then allows them to make future purchases without re-entering password, payment or address information.
Millions of consumers have used One Touch to complete transactions at big chains such as Home Depot, Macy’s and Abercrombie & Fitch, as well as thousands of smaller retailers in the PayPal network.
PayPal is also helping merchants accept Apple Pay, Android Pay, and Bitcoin payments using Braintree’s integrated SDK, and building “buyable pins” for Pinterest. One Touch is particularly effective at reducing hassles for first-time buyers on clients’ sites. PayPal will face stiff competition from Google’s new Android Pay, however.
PayPal One Touch was built on technology from Braintree, the payments startup PayPal acquired in 2013 for $800 million. Braintree is now estimated to be larger than Square and Stripe combined, according to Venture Beat. And PayPal has also inked a deal with Macy’s as part of their efforts to take over in-store transactions, widening its influence in the payments marketplace.
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