Modern customers want to make purchases quickly and without restrictions. According to the Federation of E-commerce and Distance Selling (FEVAD), an average of 70% of ecommerce carts are abandoned before checkout. In addition, 26% of customers choose not to complete purchases if businesses require them to create accounts before paying. Given these statistics, it’s important to simplify payment and eliminate unnecessary steps from the purchasing process in online shops.

One of the most effective ways to reduce cart abandonment and increase conversion is to offer guest checkout. In this article, we explain guest checkout, including its advantages, disadvantages, processes, and integration into websites.

Key takeaways

• Guest checkout allows customers to make purchases without logging in or creating accounts.
  
• Some of the advantages of guest checkout include increased sales, fewer abandoned shopping carts, and more customers.
  
• However, guest checkout reduces the business’s ability to collect personal data useful for marketing.
  
• Businesses can easily activate guest checkout by changing the settings of their ecommerce website or contacting their payment provider.
  

What is guest checkout?

Guest checkout is a process that allows customers to place orders and make purchases without creating accounts or disclosing personal information. The only data customers share with businesses is the information required for transactions and deliveries (e.g., customer’s name, email address, shipping address, and payment details).

Guest checkout simplifies and speeds up the purchasing process by eliminating the tedious task of creating an account. This feature is particularly appealing to new customers, as well as those who are in a hurry or concerned about their privacy.

The European Data Protection Board (EDPB) recommends that customers not be required to create accounts unless truly necessary for the product or service (e.g., subscriptions). Letting customers check out as guests aligns with the EDPB’s recommendations and with European online personal data protection principles.

Advantages of guest checkout

Guest checkout helps businesses do the following:

• Simplify the sales process, making it fast, easy, and accessible
  
• Meet customer demand
  
• Enlarge their customer base and gain trust from customers reluctant to share personal information
  
• Collect payment more quickly and encourage additional purchases (e.g., impulse buys)
  
• Build customer loyalty
  
• Reduce abandoned carts, increase conversion rates, and boost sales
  
• Comply with the General Data Protection Regulation (GDPR) by respecting user privacy
  

Disadvantages of guest checkout

Guest checkout diminishes businesses’ ability to collect valuable data on customer behavior. When analyzed correctly, this data can help businesses orient their marketing, target customers more precisely, and understand customer habits. Without customer accounts, it becomes more difficult to view purchase histories and offer personalized recommendations.

Integrating guest checkout into websites

Businesses can activate the guest checkout feature in just a few clicks through the settings in their ecommerce platforms (e.g., Shopify, WooCommerce, Wix) or by contacting their payment processors—such as Stripe—that automatically integrates the guest checkout option.

In fact, Stripe Checkout activates the guest checkout option by default. Customers only need to enter their contact information and bank card details to make purchases. Stripe groups transactions under guest customer profiles to allow businesses to track orders and refunds.

Checkout tips for online stores

It’s important to allow customers to choose between guest checkout and account creation when placing orders. Businesses can also offer the option to create accounts after completing purchases.

During checkout, it’s helpful to offer multiple payment methods and an interface adapted to all screen types. Displaying a complete summary of purchase information on the payment page and including robust security measures can also improve the customer experience.

Examples of businesses that offer guest checkout

Many of Stripe’s partners offer guest checkout on their ecommerce sites to simplify the payment process, including Shopify, Wix, La Redoute, Accor, and Planity. By eliminating the need to create accounts, they increase their sales and conversion rates. They also use robust, secure payments infrastructure, and their data is processed according to the Payment Card Industry Data Security Standard (PCI DSS).

How Stripe Checkout can help

Stripe Checkout is a fully customizable prebuilt payment form that makes it easy for you to accept payments on your website or application.

Checkout can help you:

• Increase conversion: Checkout’s mobile-optimized design and one-click checkout flow make it simple for customers to input and reuse their payment information.

• Reduce development time: Embed Checkout directly into your site, or direct customers to a Stripe-hosted page, with just a few lines of code.

• Improve security: Checkout handles sensitive card data, simplifying PCI compliance.

• Expand globally: Localize pricing in 100+ currencies with Adaptive Pricing, which supports 30+ languages and dynamically displays the payment methods most likely to improve conversion.

• Use advanced features: Integrate Checkout with other Stripe products, such as Billing for subscriptions, Radar for fraud prevention, and more.

• Maintain control: Fully customize the checkout experience, including saving payment methods and setting up post-purchase actions.

Learn more about how Checkout can optimize your payment flow, or get started today.