BI Intelligence
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At the Shoptalk retail trade show, Visa announced that several major merchants, including Alaska Airlines, Chick-fil-A, Cole Haan, Emirates, and the Wyndham Hotel Group, plan to integrate Visa Checkout, the card network’s single-click buy button, into their online platforms.
Adding these merchants will help Visa continue to grow its merchant network, which already counts over 250,000 merchants that represent $113 billion in addressable volume.
Merchants are likely turning to Visa Checkout to boost mobile buying as shopping on mobile becomes increasingly common. M-commerce is increasing rapidly. As mobile becomes a primary computing device, users are completing more mobile purchases — BI Intelligence forecasts that, by 2020, mobile will comprise 45% of total US e-commerce sales. But users currently prefer to buy on desktop, because of the friction associated with mobile phones’ smaller screens and slower connections.
Visa Checkout helps merchants convert a larger share of potential purchases. Visa Checkout conversion rates are high because it eliminates some of those pain points — users complete purchases from their shopping cart 86% of the time, and conversion rates are 51% higher on Visa Checkout compared to a merchant’s traditional offering, according to comScore .
That could be appealing to merchants looking to capitalize on increased mobile activity and boost their digital sales. Visa Checkout customers are potentially lucrative for merchants — users make 30% more online transactions per person than the average online shopper. The prospect of unlocking the full spending power of this shopper segment could convince more merchants to sign on to Visa Checkout.
Visa Checkout’s success and consequent expansion is one small piece of an increasingly complex ecosystem. Mobile wallets, increased security, and alternative technologies are […]
