Digital wallets have gotten a great deal of press since the start of the pandemic. But digital wallets like PayPal and Apple Pay can provide a threat to credit card organizations. Why? When consumers use these payment methods for purchases, it provides less visibility for card companies. Taking this a step further, if instant payments start happening in the U.S., they could present an even more significant threat, as those that include no card involvement at all.
Click to Pay
It’s essential for credit card brands to develop their own digital wallets where consumers can “Click to Pay.”
Click to Pay is just as it sounds, a one-click payment option that can be used on a mobile app, website or other digital channel. In this case, the payment is being made with a credit, debit or pre-paid card from Mastercard, Visa, American Express or Discover – with just a click of a button.
Addressing the risks of digital wallets and instant payments, Click to Pay provides these credit card brands with a way to further engage consumers, while providing the desired visibility into their shopping and purchasing behaviors.
Why would consumers choose to use Click to Pay? The benefits are convenience and ease. Shoppers don’t need to search for their credit card or have to enter their personal details every time they want to make a purchase digitally. They simply enter their card information once and from then forward pick the “Click to Pay” option when conducting a transaction.
And there are additional benefits to consumers – and to retailers who offer it as a form of payment – as well. Beyond it being an easy and streamlined payment option for digital shoppers, Click to Pay also bolsters payment security. The technology underpinning Click to Pay follows the EMV Secure Remote Commerce industry standard. In terms of security, this uses tokenization to replace account numbers and other sensitive data, making this payment method hard to breach or replicate.
Because the credit card details are already stored (as tokens) – and in the case of mobile, on the actual smartphone – and the consumer does not need to enter them after the first time he/she registers the card with Click to Pay, it provides a more secure option for payments.
Click to Pay clearly presents benefits to every party involved with a transaction. As mobile and online commerce continues its rapid increase given consumers’ desires for easy, efficient, hygiene-focused shopping experiences, this payment method is one to consider implementing in the coming months.