It’s all about speed and convenience these days. Users, especially those from younger generations, expect their checkout experience to be fast, smooth, and frictionless. They are used to paying with a single motion. Otherwise, the conversion rates are drastically dropping, and the cart abandonment rate is going through the roof.
According to the latest available data, the average cart abandonment rate in the US alone is 70%. To lower it, business owners such as yourself should ensure a fast and frictionless checkout. And for that, you need to consider integrating one-click payments into your business. Today, we’ll explain why and how you can easily integrate them.
The technology behind one-click payments
The functionality behind one-click payments is called tokenization. It spares the user from the necessity to re-enter their credit card details with every purchase. Instead, the system securely stores sensitive data in a form of a token (a set of numbers and letters), and with every new purchase, it gives the customer a chance to automatically fill out the fields with stored data.
Systems that don’t support the 3D Secure technology would simply let the customer pay in one click while those with 3D Secure in place would have to re-enter their password or security code. But even so, it would significantly simplify the checkout experience, grow customers’ satisfaction, and, as a result, their loyalty, and skyrocket your conversion rates.
Payments with tokenized data are known as card-on-file transactions. Besides improved convenience, sensitive data a user enters during their first purchase on a merchant’s site is immediately stored to prevent any fraud or unauthorized access to it.
What businesses can benefit from one-click payments?
Truth be told not every merchant out there will benefit from this technology. At least not to the same extent.
However, e-commerce merchants and merchants that sell everyday items or what we’d refer to as “impulse purchases” definitely will.
If you sell things your customers purchase on a whim, you’d definitely benefit from one-click payments. Besides, if you run a subscription-based business, one-click payments can be a real gem: just imagine how much happier your customers would be if you spare them the hassle of entering the same data over and over again.
It is also important to mention the merchants that often sell “hot” deals. Since these often create a sense of urgency, not having a simplified fast checkout can lead to thousands of dollars in lost sales.
However, B2B merchants or those with a larger average check size might not find this technology just as groundbreaking. Their customers, understandably, seem to spend more time deliberating over every purchase. Therefore, the convenience of a fast purchase isn’t as appealing to them. They’d rather take their time. We’re not saying that you shouldn’t get one-click payments. We’re rather saying that they might not bring in the results one would hope for.
How to integrate one-click payments
While by this point you might seem convinced that one-click payments are the way to go for your business, there are things you need to consider before implementing them to avoid chargebacks, reputational risks, and other downsides that come with an unsatisfied customer.
1. First of all, make sure to avoid any additional costs.
Customers expecting one-click payments tend to skip through all the additional pages before the checkout. Therefore, if you add up information on shipping, customs, etc. on those pages, chances are that they won’t notice them, and then upon seeing them on their credit card statement, file for a chargeback. And rightfully so.
So, first and foremost, we recommend eliminating any additional costs. And if you can’t eliminate them, display them as part of the price at every opportunity. This will prevent buyer’s remorse and chargebacks that often accompany it.
2. Only implement secure solutions.
With the market being overcrowded with fast decisions, it’s easy to fall victim to unverified service providers with big promise and no essence. So, make sure to check the service you’re about to use. Get all the background information you can before committing to anything, gather reviews, and involve a security consultant to investigate a solution prior to signing a contract.
With this being said, we’ll point out that it is often easier to sign up for a one-stop payment orchestration system with tokenization as part of the deal than for a standalone solution. This leads us to our next point.
3. Consult with a payment provider supporting tokenization technology.
Thus, for instance, Akurateco offers tokenization as part of their package deal. This payment orchestration platform allows you to simplify the payment process without compromising your security. Their solution is perfect for businesses with recurring fees because they ensure multiple retries and a flexible payment schedule.
On top of that, they are also great for e-commerce platforms with more than one payment channel. With Akurateco, merchants can enjoy customizable fee constructor and smart billing along with smart routing, smart invoicing, and an easy-to-use risk management panel.
Finally, they act as a Technical Team for your company. They’ll own the onboarding and setting up process as well as tune it up to your specific needs.
So, in case you choose to go with a platform like this, you get more than just one-click payments. You get a whole package.
Over to you
One-click payments can be a real gem for your business stimulating the flow of new customers and boosting the loyalty of the existing ones. Implementing them can benefit your business, especially if you’re an e-commerce platform or catering everyday goods with frequent sales and hot offers.
However, before diving in, head first, make sure to find a reliable solution provider. Akurateco is one of those. If you’d like to get a tour over the platform and see what they have to offer, fill out this form – and get a free Demo by one of our payment experts!
