3 Companies Making Payments as Easy as ABC

Cart abandonment is the term used to refer to online shoppers adding items to their virtual shopping cart and then leaving the site without finalizing the purchase. This has become a huge problem for retailers. According to Listrak, a digital marketing and technical advisory company, today's cart abandonment rate is as high as 77%. In other words, for every 100 potential customers visiting a site, 77 leave before finalizing their purchase.

There are many reasons for this high rate of abandonment. Sometimes a person might receive an important text or email containing a hilarious cat video before making their purchase, ultimately distracting them from what they were doing. Other times, the checkout process is so long and arduous that a potential customer loses interest or doesn't have time to complete the transaction. The risk to retailers is that there's no guarantee these customers will return to complete the purchase. Sure, some might eventually come back, but we all know that one cat video often leads to a cute baby video which, in turn, can lead to a mildly funny meme and, well, once you're checking your Facebook feed, forget about it. The moment is gone, never to return.

Several companies have worked on this problem, and three have offered solutions that appear to be working in the real world. Given these companies' ability to leverage technology to take the pain and friction out of payment processing, it's little wonder that all three have crushed the market the last two years. Let's take a closer look at what PayPal Holdings Inc (NASDAQ: PYPL), Shopify Inc (NYSE: SHOP), and Domino's Pizza, Inc. (NYSE: DPZ) are doing to create a world with a seamless checkout experience and why this matters to investors.

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Source: Fool.com