Slow checkouts can be frustrating. A slow and complicated payment process is often cited as one of the top reasons for shopping cart abandonment. In Europe, one in five shoppers abandon their shopping cart when faced with a complex checkout process.
When a shopper has to enter a lot of info or go through multiple steps, it makes the checkout process more complex. And an increased likelihood that customers will get bored and leave without completing the purchase. A lesser number of steps, with minimal info required, can encourage shoppers to complete their purchase. Hence, merchants must look at ways to reduce the amount of time shoppers spend at checkout, in order to increase conversion and sales. Enter click-to-pay.
What is Click to Pay?
Click to pay or one-click payment is an advanced payment feature that allows customers to make their payment quickly and securely with just one-click. This makes the checkout the process much faster and more seamless. It reduces the number of steps required to checkout, making it easier for a shopper to complete their purchase sooner, and with minimal need to type in their details. Faster checkout means higher conversion and an improved customer experience.
How Click to Pay Works
With one-click payments, customers have to enter their payment and other personal details (for e.g., shipping, billing address) only once when making their first purchase with a merchant. This info is then available for all future checkout processes. Customers need not re-enter their details next time they shop from the same merchant. The payment info and shipping details get auto-filled and only a few, quick authorization steps are required to complete the transaction. This makes the whole process frictionless and super-fast.
Click to pay uses SRC (secure remote commerce) standard and works on tokenization. Tokenization is the process of converting the sensitive payments info of customers into tokens, a unique string of numbers that are generated based on the cardholder’s primary account number. Tokens are highly secure. To offer click-to-pay as a merchant, you need to integrate the API into your website. This will make it available as a payment option for your customers to use.
Payments are one of the most crucial parts of the checkout process. To improve sales, every business needs to offer payment options that are safe and reliable. Click to pay is the unique step that simplifies the whole payment experience for the customer. It reduces checkout friction and helps build a customer’s trust in your brand.
Benefits of Click to Pay for E-commerce Businesses
By simplifying and speeding up the entire payment process, click to pay offers multiple benefits for e-commerce businesses, such as:
1. More successful transactions
Simplified payment processes increase the rate of successful transactions. By eliminating the need to fill out repetitive forms, click to pay helps save the customer’s time and also strengthens their intent to buy. Moreover, setting up a profile is quite simple and you only need to do it once.
2. A higher level of security means reduced fraud risk
Click to pay lets a business offer a highly secure payment experience, because it uses 3D Secure and tokenization. Tokenization removes the need to store any sensitive info in the system, thus eliminating the risk of fraud and data breaches. Moreover, all transaction details are encrypted and well-protected.
Click to pay also uses two-factor authentication which uses a verification code to complete a transaction. Without this verification code, a customer is unable to complete a purchase. This ensures only genuine transactions are approved.
3. Meets PCI-DSS Compliance Standard
Businesses in the EU that accept and process digital payments, need to be PCI-DSS compliant. This is to ensure all online payments are processed in a fully secure environment. Even if you rely on a third-party service provider for processing your payments, you still have to comply with PCI-DSS norms.
Click to pay has inbuilt security measures and is PCI-DSS compliant as it limits the exposure of a customer’s card details when making a one-time purchase. Thus, it is a highly secure payment option that also offers a streamlined and convenient checkout.
4. Reduces Chargeback Risk
Payment disputes are normal for a business. However, chargebacks can become a big financial risk, especially for smaller and medium-sized businesses.
CNP (card-not-present) transactions are more prone to fraud and hence carry higher chargeback risk. With click to pay, this gets greatly reduced thanks to tokenization. Since no card details are transferred during the checkout process, it becomes difficult for fraudsters to access and misuse a customer’s card info.
Whether you offer one-time purchases or subscriptions, as a business, you need to offer a seamless and unified payment experience to your customers. Click to pay greatly reduces payment risks and allows your business to offer outstanding customer service. It lets you stand out as a trustworthy brand, thereby maximizing your sales and revenue.
If you’re keen to set up click to pay for specific payment methods or as part of your overall checkout process, it’s best to work with a global payment service provider (PSP) like Novalnet. They can not only help you set it up but will also support you with other valuable insights and a detailed guide on how to best optimize your entire payment process.
How Can Novalnet Help
Novalnet is a global PSP with decades of experience in helping Europe’s leading brands process their payments. We can help you easily integrate a fully secure payment page into your checkout process, and help you develop a payments experience that will delight your customers and boost your brand. Our automated country-specific payment selector displays an optimized collection of payment types during checkout, adding trust and comfort while avoiding friction and clutter.
From our instant payment plug-ins to our AI-based risk management tools, we have the resources to get you up and running with your payments in a short time, with minimal coding, and all in a fully secure PCI DSS-certified environment. Reach out to us today to know more.
Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.