By: Mukund Choudhary, Associate Consultant

After the pandemic, the Digital Payment industry is growing at a rapid pace. It is found that almost 36% of customers are shopping online and it is increasing every day. The traditional way of shopping and dining is replaced by online purchases and food delivery. As the number of online customers is increasing, providing convenient and secure payment option is still a key challenge. One of the surveys found that the main reasons why customers abandoned the cart during the checkout process and didn’t complete the payment were because they didn’t trust the website with their Credit Card information and found the process complicated. Due to the following reasons, card companies are working continuously to provide better customer experience and services, and in that process, all the companies in the EMVCo association – Visa, Master Card, Discover, and American Express have partnered with each other and created Click to Pay.

‘Click to Pay’ is a faster and more secure payment option. It acts as a digital wallet system where customers can store their credit and debit card information instead of money. It follows the SRC – Secure Remote Commerce standard of EMVCo, the same association responsible for developing the 3-d secure payment system. The main reason behind this technology is to provide customers with a more convenient way to pay online and secure the customer credit card information by removing the customer data, like card number, expiry date, etc., from transactions. ‘Click to Pay’ is developed using tokenization where a virtual dummy or pseudo card replaces the actual card. This dummy or pseudo card will be passed on to schemes during any transaction, thus making it safe and secure.

How it works

Customers have to register their cards in the ‘Click to Pay’ wallet for the first time which can be done via the bank who issues the card, or they can register directly during the checkout process. Once the cards are registered, customers can see them in the ‘Click to Pay’ wallet. Now customers are just required to log in to the ‘Click to Pay’ wallet at the point of checkout and select the card through which he or she wants to make the payment. If the device is the same through which the registration process is done, the customer can complete the payment process without any additional authentication measures.

Benefits of ‘Click to Pay’ for User

• Faster Online Checkout – Customers don’t have to fill in their credit card number, expiry date, etc., every time they make a payment. Customers only need to register once on the Click to Pay platform, and then they just need to provide login credentials for any transactions. Also, if implemented correctly, customers don’t have to register on the website to process the transaction.
• Secure – Usually, customers are hesitant to provide their credit card details and save their cards on the website for future transactions. ‘Click to Pay’ resolves both concerns for the customer, first, they don’t need to provide credit card details on the website, and second, they don’t need to enter their credit card details on every website. It just requires the user to remember credentials to login on to the ‘Click to Pay’ platform to process any transaction.
• Reward – When customers pay from ‘Click to Pay’, they can use the same benefits and rewards as provided by the card issuer.

Benefit for Merchant

‘Click to Pay’ is a very easy and convenient payment option and will increase the conversion rate significantly. According to statistics, 35% of the customer abandon their carts during the checkout process because users have to create an account and complete the registration process; 27% of customers abandon the checkout process because they find it hard and complicated; 18% of customers abandon the checkout process because they don’t trust the site with their credit card detail. The ‘Click to Pay’ payment option answers all three points. Merchants can integrate this payment option on the checkout page in such a manner that occasional or first-time users don’t have to register themselves before the payment, they can get basic details like name and address from the ‘Click to Pay’ account. By adding this payment option, the merchant no longer needs to save the customer’s card information, which will reduce the merchant’s additional cost of ensuring that their website is safe and secure.

‘Click to Pay’ simplifies the payment process by reducing friction for online customers. It provides confidence to users that regardless of the website or digital channel they are using, their transactions and information are safe. This payment option not only improves the customer experience but also increases the conversion rate. By eliminating manual card entry, customers now have less time to think again, which will decrease the checkout abandonment rate drastically.

References:

• Online and mobile payment statistics – CreditCards.com
• 20 Reasons Your eCommerce Conversion Rate Is So Low (optinmonster.com)
• ‘Click to Pay’ – The digital card wallet from Visa, Mastercard, AMEX & Co. – Payment Insights (computop.com)
• American Express ‘Click to Pay’ Benefits | Amex
• Introducing the ‘Click to Pay’ icon – EMVCo