E-commerce has been evolving fast and shoppers are increasing their purchase frequency. This has made online consumers more demanding in regards to their purchasing experience. For some of them, losing time by having to enter their payment details every time they make a purchase can be frustrating. Thus, let's see how a single click payment system works, its benefits, and how it is related to a one-click checkout.
What is a one-click payment method?
One-click payment processes or single payments are a convenient feature that allows merchants to give their customers the option to pay for a product/service by clicking on a single button. However, these customers need to fill their card details in their first transaction with a specific merchant and, on subsequent purchases with the same merchant, a single payment option becomes available.
How does it usually work?
- A shopper buys on a merchant's website for the first time after filling all payment details (eg: card number, CVV, expiration date, and first and last name of the cardholder).
- This first transaction is tokenized and all infos are stored on the system.
- The same shopper returns to the same merchant's website to buy again and it is recognized by the system as a returning customer.
- A one-click payment option is available and the shopper chooses to pay through it.
- The system processes the transaction with the pre-stored info and the cardholder is charged. (this process can be different for other payment methods).
Reasons to offer a single payment option
A survey from Baymard Institute showed that one out of five shoppers abandoned their checkout process because it was too long or complicated. Thus, for merchants, single payment methods are one of the ways to enable a fast checkout, deliver a more seamless payment experience and, consequently, increase conversion rates and customer loyalty.
One-click payments are convenient, but it demands attention to safety issues. Usually, solutions that enable a single payment system count on tokenization to retrieve and store card details. The merchant, therefore, doesn't need to worry about safeguarding these sensitive datas.
By considering this process, it is the acquirer who is responsible for storing all card details and processing the transactions when requested by the merchant with valid tokens. Additionally, the merchant needs to count on a PCI-certified payment gateway and a good user authentication system to minimize fraud risks or any other security issue.
One-click payment and one-click checkout. What is the difference?
Both terms may sound similar but, to be straight to the point, single click payments are part of a single checkout process. Basically, instead of going through a multiple-step checkout that requires several infos, a one-click checkout allows the shopper to complete a purchase directly from the merchant's product page or shopping cart.
It is important to notice that shoppers don't need, after their first purchase, to fulfill forms and input, for example, their full name, shipping address, phone numbers and, of course, payment details. A one-click checkout happens in a process similar to one-click payment systems. So, when a customer makes the first purchase, all checkout info is saved and automatically used in subsequent transactions.
Merchants, however, must be careful on how they implement either one-click checkouts or just one-click payments. It can be good to balance convenience with risk. Despite fraud issues, customers may need to review their information in case they have, for example, changed their shipping address or need to use a payment method that is different from their previous purchases.