Power year-round growth with an optimized checkout experience

Shopper expectations are evolving with artificial intelligence (AI), hyper-personalization, and digital experiences. Customers want the ease of use and personal touches that modern systems make possible. For retailers, this creates an opportunity to attract new shoppers and boost revenue by delivering an optimized checkout experience.

Following this approach helped some retailers drive record-breaking sales in 2024. And getting ahead with an optimized checkout can help businesses go even further in 2025.

What 2024 tells us about retail growth

Retailers took advantage of the year's biggest shopping days to set new sales milestones.1 During Cyber Week, the week between Thanksgiving and Cyber Monday, small- to medium-sized businesses (SMBs) experienced impressive growth2:

  • 70 million transactions were processed by PayPal
  • 100,000 businesses made their first PayPal sale

SMBs also saw double-digit growth in PayPal transactions that occurred through Pay with Venmo and buy now, pay later.3

Using data to power growth

Businesses can use data to make decisions and analyze trends. Data can also help businesses delight customers with more engaging and personalized shopping experiences.

With the right data, businesses can tailor everything from advertising to special offers to post-sale recommendations for each shopper. It’s as if the store was created just for them.

3 key retail innovations

Meeting demand for personalized shopping experiences is a new expectation for businesses, whether they’re looking to grow sales or increase customer loyalty. Of shoppers surveyed, 84% said being treated like a person, not a number, is key to winning their business.4

In 2024, 3 trends defined and drove the improved shopper experience:

  • AI-powered personalization
  • Omnichannel strategies
  • Payment innovations

These trends are likely to remain important. Here’s how.

AI-powered personalization

AI is changing how businesses engage shoppers, with 92% of retailers in one survey already leveraging the technology.5 AI’s massive computing power means it can parse through data to help businesses deliver:

  • SKU-specific product recommendations
  • Tailored brand promotions
  • Customized payment options

By anticipating shoppers' needs, personalization can help reduce checkout friction and frustration. This can deliver smoother, better experiences for customers.

Omnichannel experiences

Of customers surveyed, 9 out of 10 expect consistent brand interactions across channels.6 Seamless, integrated experiences between desktop, mobile, and physical locations are no longer optional. They’re essential for helping retailers:

  • Meet customer expectations
  • Unlock more sales
  • Improve customer loyalty

Syncing data between platforms also offers retailers more insight into shoppers’ habits. This can lead to greater personalization and help to improve satisfaction.

Payment innovations

Varied payment options are quickly becoming critical for driving retail growth. These include:

  • Digital wallets
  • Buy now, pay later (BNPL)

Digital wallets are being used to pay for almost half of all global e-commerce transactions.7 And BNPL is expected to boom through 2030.8 Failing to offer these and other emerging payment options could not only mean lost sales, but also missed chances to build brand loyalty.

Drive growth with optimized checkout solutions built for today’s shoppers

The best time to optimize your checkout experience and set yourself up for growth throughout 2025 is now. Modernize your checkout. Expand into new markets. Meet today’s shopper expectations and get ready for what’s on the horizon with a single-platform payment solution.

Download the ebook to learn how PayPal can help you build a powerful checkout stack and power year-round growth.

Retail checkout optimization with PayPal (Ebook)

Retail checkout optimization with PayPal (Ebook)

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