As of February 2025, PayPal Fastlane supports U.S. merchants and buyers. However, this shouldn’t deter you from exploring its benefits, especially if you engage in cross-border sales with U.S. buyers.
Understanding PayPal Fastlane
PayPal Fastlane redefines the payment experience by combining key PayPal products into a streamlined solution designed for merchants. It simplifies the checkout process for returning customers, focusing on reducing the steps and information required during guest checkouts—a common pain point that leads to significant drop-offs.
Streamlined Guest Checkout
For buyers using Fastlane-powered checkouts, there is an option to create a Fastlane Profile. During the initial checkout, basic information such as email, phone number, and shipping address is collected. Card information is securely tokenized and stored within PayPal’s system.
When a buyer with a Fastlane Profile returns to make a purchase on any Fastlane-enabled website, they simply enter their email. This action triggers a One-Time Password (OTP) sent to their associated phone number. By entering the OTP, the merchant gains access to the buyer’s shipping address and vaulted payment information.
Comparison with Traditional Guest Checkout
In contrast to traditional guest checkouts, where buyers must either sign up for a merchant’s site to save their card information or repeatedly enter shipping details, Fastlane significantly simplifies the process. Buyers without a PayPal account can still complete transactions using their email and phone for identification, ensuring a safe and straightforward checkout experience.
The Benefits of adopting Fastlane
Some might argue that merchants won’t benefit if their buyers don’t have Fastlane profiles. While this is partially true, PayPal has partnered with several eCommerce platforms to facilitate Fastlane profile acquisition. For instance, Black Forest Decor, a small business, has reported improvements in guest checkout conversion after adopting Fastlane. Larger platforms like BigCommerce have also noted similar enhancements in conversion rates and reduced checkout times.
Additionally, PayPal has collaborated with major eCommerce platforms like Adobe Commerce (Magento) and Salesforce Commerce Cloud to further promote Fastlane adoption. It even extends its reach by working with software companies that develop plugins for various platforms, ensuring a broader integration of Fastlane into the eCommerce landscape.
With numerous tech giants investing in checkout innovations, it’s essential for merchants to stay ahead of the curve. Familiarizing yourself and your tech team with Fastlane can position your business to benefit from this growth in streamlined payment solutions.
Technical Breakdown
PayPal Fastlane is formed by a mix of existing PayPal products. Since 2024, PayPal has been promoting the PayPal Commerce Platform (PPCP), which includes a new unbranded solution for direct credit and debit card payments known as Advanced Credit/Debit Card (ACDC). This means that PayPal is not limited to its branded checkout option; it also supports direct card payments. Initially launched only in the U.S., PPCP is set to expand into several key regions, aiming to enhance PayPal’s share of the checkout market.
Additionally, PayPal has introduced a feature called Save Payment Method, or Vaulting. This works similarly to Billing Agreements or Reference Transactions but utilizes modern tokenization to enable repeat purchases. It is particularly beneficial for merchants offering member checkouts, as the saved payment methods are linked to the merchant’s members.
Both ACDC and Vaulting were evolved from Braintree technology (observed from HTML source code and network requests). However, integrating ACDC and Vaulting are not straightforward; it requires code changes on both the front end and back end, making it suitable for merchants with dedicated development team.
Fastlane represents a significant shift in the guest checkout experience. While it does require some code integration by merchants, PayPal’s partnerships with key eCommerce platforms and its availability for Braintree merchants make Fastlane more accessible. The saved shipping information and payment methods are also not tied to specific merchants or websites. For example, a customer who opts into a Fastlane Profile on Website A can enjoy a simplified checkout on Website B by simply providing their email and entering a One-Time Password (OTP). The checkout process will automatically display their previously saved shipping information and payment methods from Website A.
Although it seems Website B is benefited while Website A not, it appearantly every merchants who join now are not Website A.
Differences Between PayPal Checkout and Fastlane
While both PayPal Checkout and Fastlane are powered by PayPal, they serve different purposes:
- User Accounts: PayPal Checkout typically involves users logging into their PayPal accounts, allowing them to review payment histories. In contrast, Fastlane is designed for users without PayPal accounts.
- Branding: PayPal Checkout is a branded solution that offers features like Pay Later and PayPal Credit. Fastlane, on the other hand, is unbranded, primarily facilitating credit card transactions.
- Protection Policies: PayPal Checkout benefits from Buyer/Seller Protection policies, whereas Fastlane does not.
Conclusion
PayPal aims to partner with merchants by providing an optimized checkout experience for customers. Embracing this payment experience can help expand business opportunities by ensuring a smooth checkout process for both guest and returning customers. It’s time for merchants to familiarize themselves with Fastlane and integrate it into their payment systems to benefit from the future of eCommerce.