What is Click to Pay?
Are you tired of the lengthy, repetitive process of entering your credit card details every time you shop online? Click to Pay could be the solution you’re looking for. This payment method enables you to make online purchases with a single click, using stored payment information. It was launched in 2019 as a collaboration between major card networks like Visa, American Express, Mastercard, and Discover. The aim was to create a standardized, streamlined, and secure framework for online payments. Before Click to Pay, each card provider had its own payment system, which made the process cumbersome, especially for those owning multiple cards.
The Essence of Click to Pay
The fundamental appeal of Click to Pay lies in its simplicity and safety. It speeds up the checkout process by allowing you to use previously stored card information instead of entering it manually each time. Furthermore, Click to Pay adheres to the global EMV® Secure Remote Commerce (SRC) standards, enhancing the security of transactions through tokenization, multi-factor authentication, and 3D Secure protocols.
Global Reach
This payment approach is not limited to a specific region but is available globally, including the United States, the United Kingdom, Canada, and many other countries. This wide availability helps facilitate easier and more secure online transactions for customers worldwide.
Benefits of Click to Pay
Discussing the benefits of any new system is crucial for both merchants and consumers to understand why adopting it could be advantageous.
Click to pay benefits for businesses:
Increased Conversions
A simpler payment process leads to faster transactions and a more seamless checkout experience. This directly impacts customer satisfaction, reducing cart abandonment rates and increasing conversion rates. Fast checkouts are paramount as research suggests that prolonged checkout processes directly relate to increased abandonment rates.
Enhanced Security
Click to Pay increases the security of payment transactions using tokenization and two-factor authentication. Tokenization involves replacing sensitive data with unique identification symbols that retain all the essential information about the data without compromising its security.
Click to pay benefits for consumers:
Convenience
Click to Pay significantly reduces checkout time for consumers. Since there’s no need to enter payment details for every transaction, the purchasing process is faster and hassle-free.
Simplicity
The system removes the need to remember passwords or account numbers for online payment. Click to Pay uses a one-click system that sends a one-time passcode to a pre-registered device, further simplifying the payment process.
How Click to Pay Works
Understanding the operational aspect of Click to Pay will help you appreciate its efficiency. Here’s how it functions from the point of purchase to payment completion:
Step 1: Customer Initiates Purchase
The purchase process begins when you select the Click to Pay option at checkout. This triggers the system to send a one-time password (OTP) to either your registered mobile number or email for identity verification.
Step 2: Card Recognition
Upon successful authentication, the system retrieves your stored card information and presents various payment options, although using tokenized data ensures your sensitive information remains secure and hidden.
Step 3: Authentication by Payment Services Provider
Your chosen payment services provider will coordinate with your bank to verify payment details and ensure sufficient funds are available before processing the transaction.
Step 4: Payment Completion
Once the transaction is authenticated, funds are transferred to the merchant’s account, and both you and the business receive confirmation of the completed transaction. Typically, funds will reflect in the merchant’s business account within 24-48 hours.
How to Enable Click to Pay for Your Business
Implementing Click to Pay can provide a competitive edge by enhancing customer experience and ensuring high security. Here’s what you need to do:
Step 1: Evaluate the Need and Cost Implications
Before implementing a new payment system, assess whether it will add value to your existing setup. Consider updating your payment systems if you notice higher than average cart abandonment rates.
Step 2: Choose a Compatible Payment Processor
Opt for a payment gateway that supports Click to Pay and other functionalities critical to your business operations. Factors to consider include reliability of the payment gateway, transaction fees, and compatibility with your existing tech stack.
Additional Considerations:
Always ensure that any chosen system is interoperable with your existing setups such as CRM, inventory management, and other operational tools. An efficient integration allows for a smoother transition and better overall performance.
Deploying Click to Pay within your business not only optimizes your operations but also enhances the purchasing experience for your customers, leading to improved satisfaction and potentially higher sales. By understanding and efficiently implementing this system, you can significantly upgrade your business’s payment processes and stand out in an increasingly competitive digital marketplace.
