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Direct Checkout: how to increase conversions

Published on 01/05/2017 - Updated on 01/13/2017

Maximizing conversions for website visits is a priority for any e-commerce business. In Brazil, the shopping cart dropout rate for online stores is over 83%, according to Ve Interactive. Considering the acquisition cost of these visitors and the inhouse marketing efforts related to generating traffic for the website, maximizing conversions for visits to an online shop is crucial for any online or mobile business.


Perfecting the on-site user experience has proven to greatly improve conversion metrics. A very important part of the user experience is the payment flow. Simplifying the checkout process to make it easier for buyers to purchase is therefore essential: do not ask for unnecessary data and minimize the number of steps, limiting them to a maximum of three steps. This, however, is insufficient if a key factor for improving conversions is not considered: the implementation of a direct checkout, often also called transparent checkout.


What is direct checkout?


The traditional checkout redirects the buyer to a payment intermediary’s page, taking the consumer from the merchant’s website to an external domain URL. On the other hand, with the direct checkout, the buyer stays on the merchant’s website and the URL domain remains unaltered while the buyer completes all payment steps.


With the direct checkout, the online store communicates with a payment processor’s API and shows the results to the buyers within its own front-end.


What effect does this have on an e-commerce’s conversion rate?


The migration from the traditional checkout to direct checkout can increase the e-commerce conversion rate by 30%, according to data from PagBrasil. The main reason for this increase is the improvement of the purchasing experience. Apart from keeping the buyer at the shop and therefore avoiding dropouts, this also prevents the user from having to fill in the same data twice. Making the buying process long, introducing many steps or asking for too many details, has a direct impact on the dropout rate.


One of the greatest advantages of direct checkouts is that, due to the customizable connection with the API, merchants have total control over the payment flow. This gives them the freedom to ask for the data they need and configure the checkout form in a way that best drives conversions.


PagBrasil provides transparent checkouts for all of its payment methods, including credit cards, debit cards, boleto bancário, Boleto Flash™ and online banking transfers.Integration can be done via PagBrasil’s API and iFrame, in addition to its extensions for Magento and WooCommerce.