Why Businesses Will Like PayPal's Updated Checkout Process The payment processing company has moved to a simpler 'in-context' checkout system.

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

PayPal unveiled a new checkout system that it says is more efficient for customers and allows merchants to keep customers on their site throughout the payment process.

Under the new system, shoppers who are using PayPal to buy online will not be directed to a separate PayPal page; instead, the entire payment takes place in a small window on the merchant's website.

"Customers stay on your site, making them more likely to complete their purchases," the payment processing company said on its website.

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With the new system, shoppers will be able to log into merchant websites and apps with their PayPal credentials. This may ease security concerns for customers who are uncomfortable providing credit card information directly to stores, although buyers will also be able to also pay using their credit cards or PayPal's Bill Me Later option.

The company is piloting the updated checkout system for both desktops and mobile devices, and predicts it will be available for large merchants sometime during the first half of this year, with plans to eventually offer the new system to small and medium-sized businesses as well.

Laura Entis is a reporter for Fortune.com's Venture section.

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