As part of our second annual Customer Meetup in New York City on June 20th, 2024, we had the privilege of engaging with knowledgeable industry experts and customers who shared invaluable insights on the future of e-commerce.
Throughout the day, we explored what drives e-commerce success in 2024 and beyond, discussing how forward-thinking retailers can prepare for the next era of online shopping.
A standout moment from the event was the keynote address by Brian Dhatt, CTO of BigCommerce. He shared his career journey and the lessons he’s learned, providing a wealth of knowledge to our attendees.
In our previous post, we recapped the first segment of his keynote presentation – the role of decision theory in e-commerce pricing optimization.
In this article, we will break down the next portion of his presentation: passwordless one-click checkouts and how the 60,000 merchants using BigCommerce leverage them.
Do One-Click Passwordless Checkouts Make a Difference?
Passwordless one-click checkouts allow online shoppers to complete their purchases without logging in, creating an account, or entering a password. Retailers can integrate with payment solutions like PayPal, Apple Pay, and Stripe to offer customers a secure, single-click checkout experience.
Let’s look at some of the key advantages of using passwordless checkouts:
| For Customers | For Retailers |
|---|---|
| Speed and convenience of checking out in a single click | Increased conversions from happier shoppers |
| Security and peace of mind of not sharing your data with multiple websites | Reduced friction from long, complicated checkout princesses |
| Better shopping experience of not having to go through multiple steps | Improved brand credibility by partnering with leading payment solutions |
Passwordless one-click checkouts allow shoppers to complete their purchases efficiently and securely without having to remember or save passwords for every website they shop at. For retailers, the primary advantage is delivering a significantly enhanced and frictionless experience that increases the likelihood of conversions.
What Does Data Say About The Potential of Passwordless Checkouts?
As a consumer shopping online, it’s evident that passwordless one-click checkouts are faster and more convenient than searching for or recalling passwords to complete purchases. But is there credible data to support that passwordless checkouts positively impact conversion rates and purchase intent?
In his keynote address, Brian shared some encouraging insights into the potential of passwordless guest checkouts.
BigCommerce’s internal data shows that using PayPal Fastlane has:
- Increased guest checkouts by 15%-20%
- Improved guest consumer recognition rate by 70%
- Reduced time to complete checkout by 39%
To put these numbers into perspective, moving your checkout conversion rate by even a small margin can be a significant achievement. Therefore, if deploying passwordless checkouts helps improve conversion by upwards of 15%, it’s a worthwhile investment.
Not only do passwordless checkouts boost conversions and consumer recognition rates, but they also decrease the overall time taken to complete the process by almost 40%. In a world of diminishing consumer attention spans, a 40% reduction in time-to-checkout is invaluable.
Which Passwordless Checkout Options Should You Offer?
According to Brian’s experience at BigCommerce, the three most trusted and deployed passwordless solutions are:
- Fastlane by PayPal (500 mn+ accounts)
- Link by Stripe (300mn+ accounts)
- Shop Pay (100 mn+ accounts
Do You Get Access to Consumer Data with Passwordless Checkouts?
Many retailers are concerned about losing valuable consumer data when deploying passwordless guest checkouts. Brian clarified that the best part about these solutions is their easy integration with checkout systems. Even if users choose the passwordless checkout option, retailers won’t lose out on consumer data. Buyer information can still be captured and used for marketing purposes later, regardless of whether they opt for passwordless checkout.
Brian strongly recommends investing in passwordless checkouts, and the data and examples he shared from BigCommerce speak for themselves. For retailers, passwordless checkouts are a path to boosting conversions, fostering loyalty, and delivering a delightful checkout experience that keeps customers returning to your online store.
This is just one segment of Brian’s keynote address. Follow the Noibu blog for more insights from his talk and other industry trends and updates.
