PayPal and Braintree: Built to help optimize your payment processing end-to-end

Striking a balance

Merchants have to achieve a difficult balancing act to effectively manage fraud risk and achieve high conversion rates simultaneously. Put too many barriers in the customer’s way and it may create extra friction that could lead to cart abandonment and a significant hit to sales. It might also drive more false declines, as well as manual reviews that add to operational overheads and further harm the shopping experience.

According to our data, responding organizations are losing $4.5 million each per year due to online fraud. Yet on the other side, 38 percent say the cost of protection outweighs the cost of dealing with losses.⁵ Something’s got to change.

Two-thirds (65 percent) of merchants told us they believe their number one challenge is the increasing sophistication of fraudsters.⁶ But that’s only one of a multitude of issues they face. Others include:

• User friction at checkout
• Low first-time approvals
• False declines
• Insufficient data on which to base decisions
• Lack of clarity

How PayPal and Braintree can help

PayPal’s payment processing platform, Braintree, is at the beating heart of our fraud protection offering to merchants. Here’s how it works to mitigate some of today’s top customer challenges:

User friction: Reduces transaction disruptions and lifecycle management declines through innovative solutions, such as:

• Account Updater, which automatically updates payment information for customers to keep recurring payments on track and ensure stored details are up to date
• Network tokenization, to enhance visibility and lifecycle management without compromising on security^*
• Vault technology, which supports the removal of expired cards from stored payment options, presents the most recently used card as the default, and makes it easy for customers to update card details

Low first-time approvals: Innovative processing strategies and cloud infrastructure optimizes transaction messaging.

False declines: Intelligent risk algorithms, and fraud detection and carding tools leverage machine learning for more accurate real-time decision making.

Insufficient data: PayPal’s consumer-merchant network includes over 429 million active accounts and more than 35 million active merchants accounts globally, providing robust consumer data and insights from both sides of the transaction.⁷

Lack of clarity for declines: Our data science and industry expertise help to clarify declines and ensure the correct merchant category codes and transaction configurations.

Increasing fraudster sophistication: PayPal’s advanced fraud technology harnesses data from across the network and applies intelligence machine learning algorithms. These work to spot the fraud patterns human eyes might miss, and continually optimize fraud filters to adapt to evolving fraud tactics.

Adding value across the entire payments journey With the power of PayPal, powered by Braintree’s payment processing and our risk management solutions, organizations around the world could:

• Drive authorization rates and help maximize revenue: Braintree has shown an increase in authorization rates by 4 p.p. globally^*
• Reduce transaction costs: 86% of Braintree users in Europe agree Braintree has low transaction costs or service fees^*
• Reduce chargeback costs: In the US, Braintree can help reduce chargeback rate by 4 bps^*
• Improve operational efficiency in the payment ecosystem: 84% of Braintree users agree Braintree reduces operational overheads^*
• Gain access to new customers and markets: Tap into PayPal’s multi-dimensional network of 429 million active accounts, partners, and industry experts to expand your business.^*
• Increase conversion rates and lifetime customer value: Consumers are nearly 3x more likely to complete their purchase when PayPal is available at checkout.^*

According to a recent Forrester study of a composite merchant, PayPal’s solutions could help large businesses generate ROI of 401% over three years and net present value (NPV) of $3.36 million.⁸ There’s never been a better time to see what we can do for your business.

Learn more about how PayPal can help you grow and optimize your business with a flexible, end-to-end payments platform powered by Braintree technology.