Stripe releases extensive upgrades for its optimized checkout suite.

November 16, 2023

Stripe, a financial infrastructure platform for businesses, has introduced new features in its optimized checkout suite to assist users in enhancing revenue by simplifying the customer purchase process. The suite integrates years of Stripe research, providing businesses with a streamlined set of products, tools, and features for customer interaction. These updates represent the largest package of new payment optimizations from Stripe to date, offering expanded payment method choices, support for one-click checkouts, and an innovative no-code A/B testing tool for businesses to assess payment method performance. Abhinav Tiwari, product lead for Stripe's optimized checkout suite, emphasized the pursuit of an ideal checkout experience where any legitimate customer globally can swiftly complete a purchase using their preferred payment method, requiring minimal engineering effort from businesses. The ongoing efforts of Stripe's payments engineers aim to bring this ideal closer to reality. The optimized checkout suite enables businesses to provide customers with an excellent checkout experience without the need for extensive development. It integrates pre-built user interfaces with accelerated checkout options, a diverse array of payment methods, and controls for businesses to easily customize the checkout experience.

Key features of the optimized checkout suite include:

Access to over 100 payment methods, now including Revolut Pay, Mobile Pay, US bank transfers, and Swish. The suite dynamically presents customers with the most relevant payment options from a pool of over 40, utilizing algorithms trained on billions of data points. For instance, the Payment Element suggests Cartes Bancaires to Parisians purchasing items in Japan but recommends Konbini to Tokyoites buying locally.

An A/B testing tool that empowers businesses to systematically identify the most effective payment methods in their checkout process and make data-driven enhancements over time. In a notable example, the creator platform Thinkific observed a 36% increase in average order value through an A/B test, where offering "buy now, pay later" was implemented. Stripe is unique in providing a no-code A/B testing tool for payment methods.

The Express Checkout Element, allowing users to showcase multiple one-click payment buttons (like Apple Pay, Google Pay, or Link) with a single component. Payment methods are dynamically presented based on relevance to the customer, displaying only those supported by their device or browser. Research indicates that businesses with Link enabled experience a meaningful boost in conversion rates. 

River Island, a multi-channel fashion retailer, embraced the optimized checkout suite to modernize its fragmented payments system and present customers worldwide with the most relevant payment methods. Shortly after implementation, River Island experienced a notable 3% enhancement in credit card authorization rates and foresees substantial revenue growth in the upcoming year. Emily Haddrell, the digital product lead at River Island, expressed optimism about the partnership with Stripe, anticipating capturing millions in additional sales value over the initial 12 months.

Addressing the challenges of inefficient online checkouts, Stripe's research revealed that a staggering 99% of leading ecommerce sites exhibit five or more basic errors, hindering customers from completing purchases. A significant 60% of online shoppers are inclined to abandon checkouts taking more than two minutes (with the average exceeding three), and 85% would do the same if their preferred payment method is not offered. Businesses transitioning from an older Stripe integration (the Card Element) to the optimized checkout suite observed a noteworthy 10.5% increase in revenue. The globally available optimized checkout suite is set to expand with additional products and features over time, providing opportunities for businesses seeking to enhance payment conversion and boost revenue.

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