Trends
transformingcommerce.
A perspective from John Kim, EVP, Chief Product Officer, PayPal.

Change is happening faster than ever.
How can businesses keep up — while growingand still managing costs?
These are the trends leaders
should keep top of mind.

1. Data is key to a fast
checkout experience.
With new entrants driving up ad prices and e-commerce sales growth slowing, overall
cost structures are outpacing commerce growth. Businesses need to cost-effectively
increase sales and convert customers, and a fast and simple checkout experiencecan help — but it requires masses of data and the right technology.

82%

of customers surveyedhave stopped an online
purchase because theaccount registration
process was too long.1

72%

of customers withexisting retail accounts
would still use guest
checkout for its
convenience or speed.2

Step on the gas with an accelerated guest checkout.
Customers want guest checkout, and Fastlane by PayPal helps guest shoppers
check out quickly — no password required. Powered by the scale of the PayPal
network, Fastlane is designed to help increase conversions by recognizing
shoppers and speeding them through checkout.

Fastlane has been shown to help
shoppers complete guest checkout

Shoppers with Fastlane profiles havebeen shown to convert at

than non-accelerated shoppers.3

when using guest checkout.4~32% faster~80%“Fastlane is arevolutionary
product. PayPal
didn’t invent
the idea of anaccelerated
checkout, but
we’re going to
be great at it —because wehave the data.”

2. Fraud continues toput businesses at risk.
Fraudulent activity is skyrocketing. It’s creating significant risk for the entire e-commerceindustry and potential disaster for those underinvesting in fraud management.
Analysts predict businesses will lose $362 billion to fraud globally from 2023–2028.5

At $8 trillion, cybercrime is the thirdlargest economy in the world.

The cost of cybercrimevs. top country GDPs.6
01 United States$25T

02 China$18T

03 Cybercrime$8T

04 Japan$4T

05 Germany$4T

As cyberthreats grow in frequency and sophistication, retailers must
increase investments in security solutions.
You can strengthen fraud management technology by working with a payment service
provider — like PayPal — that can help with sensitive data vaulting, passwordlessauthentication, chargeback prevention and management, and fraud solutions.

3. AI-powered personalization
drives customer engagement.
The impact of artificial intelligence (AI) and machine learning (ML) is very real.
Companies that don’t invest in AI are already trailing behind.
And AI is critical for customer personalization — but it’s only as good as the data you feed it.
Access to the right, high-quality data at the scale — and with the proper permissions —to actually drive true personalization: That’s the key.

AI/ML shown to helpgrow retail sales.7
1.35

1.30

1.30
1.25
1.20

1.14

1.15
1.10
1.05
1.00

2022

2023

Retail sales with ML/AI

2024

Retail sales with no ML/AI“PayPal’s global network gives it masses of high-quality,relevant commerce data. AI is a big part of our strategy. It sits
on top of our data layer to help with personalization and reward
optimization, and it fine-tunes our risk management tools.”

72%

of customers say they only
engage with personalized
messaging.8

Attract new customers with the right deal
at the right moment.
Harness PayPal’s scale and AI-powered advanced offers platform:
Customers get a personalized, rewarding experienceYou get cost-efficient engagement

PayPal can help you manage the trends transforming
commerce, and power real growth for your business withAI-driven innovations.

Learn More1, 2
3
4
5
6
7
8Capterra, online shopping survey conducted in Mar 2022 among 770 US consumers. Apr 2022. N=770. “Your Online Checkout Process Should Take 4 Minutes or Less — Here’s How to Speed Things Up.”
Based on PayPal internal data from Apr 3–Jun 15, 2024. Comparing Fastlane-accelerated shoppers vs. non-accelerated shoppers for merchants that have integrated Fastlane.
Based on PayPal internal data from Apr 3–Jun 15, 2024.
Juniper Research, “Online Payment Fraud: Market Forecasts, Emerging Threats & Segment Analysis 2023-2028,” Jun 2023.
TechNewsWorld, Apr 8, 2024. “Hacker Nation: The World’s Third-Largest Economy.”
Statista, Apr 2023.
Startup Bonsai, “55+ Top Personalization Statistics for 2024,” Mar 2024.