PayPal and Adyen Expand Partnership to Streamline E-Commerce Payment Processes in the U.S.

Support for the e-commerce sector

The growing partnership between PayPal and Adyen will have a far-reaching impact on the entire US e-commerce market, given Adyen’s broad customer base.

Pieter van der Does, Co-Founder and Co-CEO of Adyen, added: “This expanded partnership with PayPal further strengthens Adyen’s ability to provide global businesses with seamless payment flows and a superior guest shopping experience.”

The latest development builds on an existing partnership between PayPal and Adyen, which previously enabled Adyen customers to be offered a suite of PayPal payment solutions, including Venmo and Buy Now, Pay Later (BNPL).

While PayPal’s initial rollout of Fastlane via Adyen will focus on the US market, there are plans to expand the offering globally in the future.

For now, the partnership represents an opportunity for PayPal to expand its reach and solidify its position as a leading payments platform.

As Alex Chriss points out: “PayPal has become the go-to platform for the world’s largest retail brands, technology companies and payment processors, delivering seamless and connected commerce experiences to hundreds of millions of consumers and businesses.”

At the same time, for Adyen, this collaboration increases the value proposition for corporate customers, providing an additional tool to optimize checkout processes and potentially increase sales.

Van der Does emphasizes the importance of this fact: “PayPal is the payments brand trusted by shoppers, and we are excited to take our partnership a step further in the US, leveraging our combined experience to raise the bar for our customers.”

Seamless transaction processing is key to customer retention

Perhaps most importantly, customers of US-based businesses and marketplaces can now enjoy the benefits of a faster checkout process.

A 2023 study by Baymard Institute found that 17% of American online shoppers have abandoned their shopping carts due to a “too long/complicated checkout process.”

With faster conversion rates, Adyen business customers can expect higher engagement, which is supported by a 2024 Forrester Research study that found that 68% of online shoppers are more likely to return to retailers that offer a fast and easy checkout process.

A similar 2023 report by McKinsey & Company found that improving the checkout process could lead to a 35 percent increase in customer retention for e-commerce businesses.

According to research from Bain & Company, improving retention rates can have a significant impact on a company’s bottom line, as increasing customer retention by just 5% can increase profits by 25% to 95%.

The partnership between PayPal and Adyen therefore addresses a key aspect of e-commerce that has a direct impact on customer satisfaction, loyalty and, ultimately, business profitability.