PNG to WebP converts PNG files to WebP, a format that keeps transparency like PNG but stores images more efficiently. It is a common step when a website's logos, illustrations, product cut-outs and screenshots are slowing pages down.
You choose between two modes. Lossy WebP (the default, at 85% quality) gives the smallest files and suits photos, product images and illustrations with gradients. Lossless WebP keeps every solid pixel exactly as in the PNG (soft, semi-transparent edges can shift by one colour level out of 255, which you can't see), which is right for logos, icons, UI screenshots and anything with sharp text; lossless WebP files are typically smaller than the PNG, though by less than lossy files. Transparent and semi-transparent pixels are kept in both modes.
The tool shows the expected size of your first image before you convert, so you can compare lossy and lossless for free. If a PNG is already very small (a simple icon of a few kilobytes), WebP may save little or nothing, and the preview will show that. Images above about 16.7 megapixels are scaled down to fit the browser's canvas limit.