In its second-largest acquisition, Amazon buys the company for $970 million.
The educational products merchant last year moved from 2Checkout’s hosted checkout to a variant of the vendor’s technology that keeps consumers on the retailer’s site.
Educational products e-retailer Stemfinity’s revenue nearly tripled after it moved from global payments processor 2Checkout’s hosted checkout to a system the vendor offers that allows a consumer to complete his order on Stemfinity.com.
The change means that when a shopper clicks to check out on the retailer’s page he isn’t moved to a 2Checkout page. Instead the 2Checkout payment technology is brought into the Stemfinity.com site via an application protocol interface, or API, a link between software systems. Keeping shoppers on Stemfinity.com reassures them the site is safe and secure, says Bill Albert, the retailer’s CEO.
“When you force a customer to go from one site to another, it can make that customer hesitant to move forward,” he says. “Moving to the API eliminated that worry.”
Almost immediately after making the change, the retailer’s average conversion rate more than doubled. And Stemfinity’s revenue nearly tripled last year compared to the previous year, with its sales on pace to double again this year. Stemfinity declined to disclose its sales.
While Albert says some of that growth may have come from other changes, such as it signing up more subscribers for its e-newsletter, revamping the checkout process likely had the most pronounced effect.
2Checkout also helps Stemfinity ensure that its site is compliant with the Payment Card Industry Data Security Standards, a set of data security standards backed by the card industry.
“We like having the security of knowing everything is safe and secure,” he says.
2Checkout charges a 2.9% transaction rate, plus 30 cents per transaction.