PayPal pilots AI-based personalization features
PayPal Holdings Inc. is introducing six new artificial intelligence (AI)-based customer engagement solutions.
The digital commerce provider will roll out the following new customer experiences in the U.S. throughout 2024:
Biometric login
PayPal is accelerating the checkout process by integrating passkeys to enable customers to biometrically log in with their face or fingerprint with one tap, and to improve latency. According to PayPal, this will reduce latency by as much as 50% and enable customers to check out twice as fast, with the same level of security. The new login solution will also leverage AI to get smarter and faster over time.
One-click checkout
PayPal is introducing Fastlane by PayPal, a new one-click online checkout experience that lets customers save their information with Fastlane to check out in as little as one tap. They do not need to remember a username or password, update personal information, or share a credit card online.
PayPal has been piloting Fastlane by PayPal with a select group of retailers on the BigCommerce, e-commerce platform and longtime PayPal partner, with early results showing that Fastlane can recognize 70% of customers and accelerated checkout speeds of nearly 40% compared to a traditional digital checkout process.
Smart receipts
A new smart receipts solution provides a receipt that allows customers to track their purchase and utilize AI to predict what they may want to buy next from that retailer. As a result, retailers will be able to include a personalized recommendation along with a cashback reward offer on a receipt.
PayPal is also leveraging AI-supported personalized receipt suggestions that are based on shopper behavior data, combined with what PayPal can see across the web.
Advanced offers platform
PayPal will use unique customer insights to build a dynamic, personalized advanced offers platform giving retailers the ability to reach customers based on what they have bought across the internet, down to the SKU and the individual product.
The platform will also allow retailers to customize offers for customers, and retailers will only pay for performance, not impressions or clicks. PayPal is also building transparent privacy controls so if a customer does not want their data shared with retailers to personalize their shopping experience they can opt in or out.
Mobile app cashback offers
PayPal is introducing a feature called CashPass on its mobile app to give customers access to hundreds of personalized cashback offers from select brands in the U.S. To redeem an offer, a user will tap on the offer, shop at that business, and check out with PayPal.
CashPass uses AI to organize personalized offers for customers based on shopping behaviors, and customers will regularly discover new cash back offers. Starting in March 2024, PayPal is planning to launch CashPass with a set of launch partners including Best Buy, eBay, McDonald's, Priceline, Ticketmaster, Uber and Walmart.
PayPal CashPass users will also be able to stack with other PayPal rewards such as cash back from the PayPal CashBack Mastercard, and can put cash back into a PayPal savings account.
Enhanced Venmo business profiles
PayPal’s Venmo digital payment solution introduced business profiles in 2021 to help small businesses accept payments. The next iteration of business profiles will add subscribe buttons, profile rankings, and the ability to offer promotions to consumers, offering increased visibility in the Venmo app. The same type of privacy controls will be available on Venmo as on PayPal.
"PayPal is on a mission to revolutionize commerce, globally, and today we are starting the next chapter," said Alex Chriss, president and CEO, PayPal, in a Jan. 25 keynote address at the PayPal FirstLook conference in San Jose, Calif. "With nearly 400 million consumer accounts, and 35 million merchant accounts, PayPal handles transactions for about a quarter of the world's e-commerce transactions each year, but more importantly, shoppers trust PayPal to power their payments."
[Read more: Microsoft integrates PayPal solutions into e-commerce offering]