PayPal launches Web instant checkout service, takes aim at Stripe

|By:, SA News Editor

Looking to speed checkout times for online shoppers (and in doing so get them to pay with PayPal instead of an alternate option), PayPal (EBAY +1.3%) has extended its One Touch payments service (allows users to pay without having to enter their username/password) to websites. One Touch launched on mobile apps last fall; some clients have reported seeing major increases in conversion rates after adopting it.

The solution takes aim at Stripe, which has often been praised by merchants for offering better and easier integration with their sites than PayPal, as well as providing better management tools and customer support. Stripe, valued at $3.6B in a recent funding round, has a customer base that includes OpenTable, Salesforce, and Rackspace; it has also struck deals to handle payments on Facebook and Twitter's sites/apps.

The move comes ahead of a PayPal spinoff expected to boost the company's ability to strike deals with eBay marketplace rivals. eBay's PayPal division revenue rose 14% Y/Y in Q1 to $2.1B, and its payment volume 18% to $61.4B.

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