A simple yet quick checkout process is what makes companies stand out in the marketplace today. Click to Pay saves customers valuable time by eliminating the need to fill out repetitive, tedious data before making the payments to complete the transaction.
As its name suggests, Click to Pay allows users to make purchases from online retailers and service providers by simply clicking one button. Subsequently, the user can select a card from several credit and debit cards that they have pre-saved through Click to Pay to complete their purchase.
One of the purposes here is transaction speed. With traditional methods, users must create an account (which accounts for 24% of cart abandonments) and enter their payment information. Moreover, around 18% of users do not trust online sites with their payment information. With Click to Pay, they will instead be required to click the Click to Pay button and select the pre-saved card of their choice. After that, Click to Pay provides the online retailer with the information necessary to complete the purchase.
Another purpose is to improve security. The payment information of the user is not shared with merchants. Instead, it is constrained to remain within the Click to Pay system. This makes it difficult for malicious parties to steal sensitive payment information.
Optimizing Customer Checkouts by Balancing Security and Convenience
It is rather well known among business managers and merchants that a simple, elegant, and rapid checkout process is crucial for achieving business growth. The results of a study corroborate this knowledge—a superior checkout design can increase the conversion rate by 35% on average.
The checkout process is the final hoop that a customer must jump through before completing a purchase. Moreover, it is a critical component of an organization’s customer experience and security setup. Implementing a robust checkout and fraud prevention infrastructure for the checkout process can help one deter fraudulent activity. It also smooths out the process of online payment at checkout, thereby securing sensitive customer data and simplifying the process from the customer’s viewpoint. However, given that most customers are legitimate, one should ensure that it is easy for them to checkout. In this light, it is imperative to ensure that legitimate customers are not bothered, and their privacy is secured. This is a delicate balancing act, which can be realized using various tools and strategies.
Rise Of Click to Pay
Anyone who has shopped online has most likely come across Click to Pay, a payment technology that reduces the process from checkout to online payment to a mere click of a confirmation button. More than 10,000 U.S. merchants use this technology to ensure that customers can purchase with the required payment information while not having to re-enter personal details.
The innovative Click to Pay framework was developed by EMVCo, an alliance comprising Europay, Mastercard, and Visa to provide a more hassle-free checkout experience to customers.
The boom in E-commerce and M-commerce has further accelerated the uptake of Click to Pay. The small screens of handheld devices make it difficult for customers to enter contact and payment details. Moreover, security on public Wi-Fi connections is often spotty. For these reasons, the use of Click to Pay enhances convenience and improves security for customers.
From the retailer’s standpoint, it reduces shopping cart abandonment—a major problem for online stores because 68% of online shoppers abandon their carts, which leads to considerable monetary losses annually.
This trend of adopting digital and payment transformation technologies is also apparent in other industries. For instance, the hospitality industry, restaurants, and other food operators are now investing in digital ordering and pay-at-table services. The COVID-19 pandemic has hastened this process. However, one would be wise first to gauge which technologies would help them enhance customer experience before investing heavily in such technologies and providers.
The Next Step in the Evolution of Click to Pay
Click to Pay has impacted the broader FinTech sphere in several ways. It exemplifies the frenetic pace of transformation of the payments landscape, and after chip and pin and 3DSecure—it is the next major transition for merchants and customers.
Click to Pay should be viewed through the frame of more encompassing attempts to usher in novel internet-based identity standards. Numerous organizations are trying out new sign-in standards. It is widely agreed upon that passwords and manual data entry through a keyboard will be rendered obsolete in the coming years. Many FinTech companies are working toward this end. For instance, some companies are attempting to use blockchain technology for online identity verification.
Other companies are using computer vision and beacons to facilitate what is called “Invisible payment.” In this context, Click to Pay should be viewed as a major step toward payment transformation and identity management transformation.
Convenient Payment Option that Increases Conversion Rate
Click to Pay offers several advantages to consumers and retailers. For example, customers will no longer be required to locate their debit/credit card or save card details in their browsers or have them on file with merchants. They will not be asked to input registration details during checkout. All this information will be stored by the provider of their Click to Pay card.
Moreover, Click to Pay restricts access to customers’ card data. The data are stored on the card-issuing bank’s servers, and even retailers cannot access card details. It is anticipated that these measures will increase transaction security and enhance customers’ trust in the Click to pay system.
From the merchants’ standpoint, the Click to Pay payment process can potentially alleviate cart abandonment, accelerate transactions, and increase customer trust and goodwill. It has been developed to reduce customer friction associated with online payments, and the resulting smooth checkout process is expected to improve merchants’ sales indicators.
Get in touch with our team to learn more about how you can benefit from Click To Pay.