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 must fill in their card details in their first transaction with a specific merchant. A single payment option becomes available on subsequent purchases with the same merchant.
How does it usually work?
A shopper buys on a merchant's website for the first time after filling in all payment details (e.g., card number, CVV, expiration date, and first and last name of the cardholder).
This first transaction is tokenized, and all info is stored on the system.
The same shopper returns to the merchant's website to buy again, and the system recognizes it as a returning customer.
A one-click payment option is available, and the shopper pays 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.
The risk management in one-click payments
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 data.
Considering this process, the acquirer is responsible for storing all card details and processing the transactions when the merchant requests valid tokens. Additionally, the merchant must count on a PCI-certified payment gateway and a sound user authentication system to minimize fraud risks or any other security issues.
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.
Instead of going through a multiple-step checkout that requires several pieces of info, a one-click checkout allows the shopper to complete a purchase directly from the merchant's product page or shopping cart.
It is crucial to notice that after their first purchase, shoppers don't need to fill out forms and input, for example, their full name, shipping address, phone numbers and 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 about implementing 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.