In today's increasingly competitive digital landscape, eCommerce businesses must ensure they provide seamless payment experiences to minimise the risk of cart abandonment by their customers. In fact, the global cart abandonment rate was found to be 70% in 2023, with some of the most common reasons being a long or complicated checkout process, website performance issues and/or concerns about the security of customer's personal data.
One way businesses can improve checkout conversion rates is via single-click payments, which provide a quick and simple way for customers to make purchases online. In this article, we'll explore the concept of one-click payments by explaining how it works, how it can benefit businesses, how safe it is and how businesses can leverage this solution to maximise conversions. Let's get into it!
What are single-click payments?
One-click payments (also known as one-click checkout, click to pay or single-click payments) enable customers to complete a transaction in just a few clicks by saving customers information when shopping online with a merchant. Depending on the merchant’s agreement with their payment service provider (PSP), this data will be tokenised and stored securely by either the PSP or merchant (more to come on tokenisation).
Different types of one-click payments
One-click card payments
During their first transaction on a merchant's website, customers are given the option to save their card details for future use. After selecting this option and initiating the purchase, shoppers only need to enter their card's Card Verification Value (also known as CV2, CVC and CVV) to complete their next order via an express checkout (more to come on this).
Single-click digital wallets
To enable one-click payments using mobile wallets, the customer must first install a digital wallet on their device and set it up with their preferred payment method (e.g. credit or debit card). Many smartphone devices have built-in features that allow customers to conveniently save their payment details. Then, when customers proceed to the merchant payment page, they can select a mobile wallet option such as Apple Pay or Google Pay™ to confirm and authenticate the payment.
How do one-click payments work?
It's important to note that one-click checkouts may vary depending on the PSP, eCommerce platform and other factors. The below outlines how one-click payments work for card transactions on a merchant’s website:
- After selecting the product, the customer will be directed to the checkout page, where they will fill in their personal and payment details for the first time. At this stage, the payment page will offer the option for the customer to save their payment information for future purchases.
- After the transaction is approved by the issuer (also known as the issuing bank), the payment information (minus the CVV) is securely saved in a special token vault database, with a unique, randomly generated, irreversible token assigned to it.
- For future purchases, the token will replace the sensitive card information to prefill the customer's payment information. The customer will then only need to type the CVV code for the card they initially used to complete the transaction, facilitating an express checkout.
What is tokenisation and how does this support express checkout?
Tokenisation is a security process that entails substituting sensitive payment data, such as credit card numbers, with unique identifying symbols known as ‘tokens’ for each purchase. Once data is tokenised, it becomes unusable if breached.
In the context of one-click card payments, after consumers consent to saving their payment details and this information has been authorised by the cardholder’s issuer, a token is generated and securely stored in a token vault (as mentioned previously). For future purchases, customers just need to enter their CVV number for the tokenised card, thus allowing them to make a one-click payment.
It’s important to note, tokenisation on its own is not a fail-safe method for preventing fraudulent attacks. While it provides an additional layer of protection by ensuring that any tokenised data is indecipherable in the event of a data breach, it should also be used in tandem with a robust fraud prevention and risk management strategy. This includes using a PCI Level 1 compliant payment gateway to tokenise and securely store customer payment information, alongside a comprehensive real-time risk engine.
Are single-click payments safe?
With online payment fraud projected to reach $48 billion globally in 2023, it’s important for merchants to have measures in place to safeguard their business and customers against fraudsters.
To allow customers to safely make one-click payments, merchants need to partner with a PSP that complies with the latest security standards such as PCI DSS and PSD2, which includes 3DS2, point-to-point encryption and SSL certificates.
This ensures consumers’ payment information is securely stored, shared and processed within the online payments ecosystem, mitigating the chances of fraud.
There are also additional measures PSPs can implement like tokenisation, Address Verification Service and fraud management solutions to help protect your business against fraudulent attacks. With these measures in place, businesses can give their customers peace of mind that their payment details are being adequately managed, while seamlessly accepting one-click payments.
Key benefits of instant payments
Increased repeat purchases
The convenience and speed that customers experience when using one-click payments to make purchases are among the key advantages of this solution. By simplifying and expediting the shopping process, you can encourage customers to return for future purchases. Smile.io reports that after making their first purchase from your online store, customers have a 27% chance of making another purchase. Taking this into consideration, it's important to offer your customers an optimised checkout experience through features like one-click payments.
Reduced cart abandonment
21% of customers will abandon the merchant's website due to complicated or lengthy checkout experiences. By providing a simplified checkout process with less steps, you can save the customer time and eliminate the need for them to navigate through various website processes that may lead them to abandon their purchase.
Improved brand loyalty
80% of consumers say that speed and convenience during a purchase process are the most important elements for a positive customer experience. By introducing one-click payments into your payment flow, you can provide a secure and seamless purchase experience that can lead to increased customer loyalty.
Lower risk of technical errors
Research has uncovered that 17% of cart abandonments in recent months have occurred due to website errors. An express payment checkout enables customers to bypass the data entry page, which can be crucial for avoiding technical errors on your website, such as long loading times or error messages when customers attempt to enter their personal information. This also means that transactions are less likely to be declined as a result of incorrect payment information.
Increased mobile payments
In 2022, mobile wallets constituted around half of global eCommerce payments. By providing customers with the option to pay via eWallets, merchants can tap into the growing mobile commerce market, boosting their reach and conversion rates.
It's important to note that merchants must ensure that their websites are mobile-optimised to fully support this trend, providing a seamless shopping experience across devices.
How to accept one-click payments with emerchantpay?
Selecting a payment service provider capable of implementing single-click payments for your business and providing security to your customers is crucial for ensuring a seamless express checkout experience. With emerchantpay, you can integrate one-click payments along with essential security solutions covered in this article, such as tokenisation, 3DS2 and advanced anti-fraud tools.
Moreover, with emerchantpay supporting you, you'll receive specialised assistance from your dedicated Account Manager and Risk Analyst, who can offer tailored support and guide you on how to optimise your payments experience using single-click payments.
Ready to use one-click payments in your eCommerce strategy and elevate your customers’ shopping experience? Contact our team of payment experts today!