Should I use PayPal, Will PayPal Improve My Ecommerce Sales?

When selecting a payment gateway there are hundreds you probably haven’t heard of, but PayPal is probably one of the first you did think of for your Ecommerce website.

Choosing the right payment gateway for your business is one of the most important decisions you make when setting up your ecommerce website. And once you’re up and running, ensuring you have the right payment gateway to suit your business only grows in importance.

It’s almost impossible to encounter an online shopping experience that doesn’t offer PayPal as an option for checkout. Why is this?

Well, many shoppers are hesitant to provide their credit card information to e-commerce stores because they are skeptical about security. Users like these would rather purchase through ‘buyer protection’ security provided by a PayPal checkout than entering their payment details directly.

While security may be an issue for some, other shoppers just want the convenience of entering their PayPal username and password to short circuit the checkout process.

Because of this a many online retailers like, ThinkGeek offer both PayPal and Bill Me Later express checkout buttons on their shopping cart page. Since the idea for eCommerce is to provide the best way for your customers to purchase, then it makes sense that adding PayPal as a checkout method will improve your Ecommerce sales.

paypal checkout

There have been many studies done on the relevance of using PayPal with your Ecommerce site.

The results are a pretty clear  indicator that adding PayPal to an Ecommerce site does improve sales. Compared to non-PayPal transactions, a study run by Volusion found that online merchants who offered PayPal Express Checkout saw the following:

  • a 44% increase in conversions due to fewer clicks, fewer screens and the trust-worthy PayPal name

  • a 5.3% increase in new buyers, with up to 83% of PayPal buyers being first-time customers

  • a 2.7% increase in transaction value

You can check out the full PayPal Express Checkout report here!


PayPal is now recognized as the world’s largest online payment processor. PayPal is now available in 203 markets and multiple currencies. It allows customers to hold balances, deposit and withdraw their funds securely, with full compliance and control over their financial data.

The following infographic provides a detailed layout of PayPal’s success story:


paypal inforgraphic