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Innovations That Facilitate Quick and Seamless Payments

Regarding online payments, customers are always looking for quick and convenient ways to pay for their purchases. After all, our daily interactions with technology have prompted us to expect a seamless experience with instantaneous availability and an easy-to-use interface in the realm of digital payments as well. This makes technological innovations that facilitate seamless payments, a central necessity for meeting such customer expectations and enhancing the experience of digital payments as a whole. That is why payment innovations that facilitate seamless payments are central to meeting such customer expectations and enhancing digital payments. 

One-click Payment

One such innovation is One-click Payment, which saves the customer time from having to re-enter card details for every purchase. After the shopper’s first transaction, they have the option of saving card details on the merchant’s website and paying with a single click thereafter. This type of transaction is referred to as a card-on-file transaction as the card details are immediately tokenized after the first purchase. Subsequent payments can then be done without additional authentication whenever the customer clicks pay on the app/website.

Evidently, One-click Payment allows customers to have a speedy checkout, as the name implies. This is advantageous for regular customers as it saves them the hassle of filling out payment information and greatly reduces the checkout time. In turn, this functionality can significantly improve customer retention, boost conversions, and reduce cart abandonment rates. As an example, customers who shop on their phones during their daily commute can checkout with a few clicks, rather than having to take out their card and manually fill out the fields on the payment page. Alternatively, digital users who trade Crypto or Forex also require a quick completion of the transaction and One-click Payment proves to be exceptionally useful in this case. 

Pay-by-Link and QR-code Payments

Besides the One-click functionality, Pay-by-Link and QR-code payments are other features that promote the speed and convenience of online payments. Although the checkout process is slightly longer as the customer is required to fill out the payment details, contrary to One-click payments, Pay-by-Link and QR-code payments still promote faster payments.

Turning to Pay-by-Link essentially entails generating a payment link and sending it to a customer via text message, email, social media app or any other channel. After receiving a payment link, the customer can click on it and get redirected to a payment page that includes a prespecified payment amount. At that point, the only thing a customer is required to do in order to checkout is to fill out the payment details and complete the transaction. Overall, the entire process is quick and simple, it requires minimal effort and the customer can checkout with a few clicks. Additionally, Pay-by-Link enables merchants to follow up with customers who did not complete their payment by directly sending a payment link as a reminder.  

Similarly, QR-code payments allow the customer to scan a uniquely generated QR code with their mobile phone and get redirected to the payment page. The code can be scanned with the mobile camera or alternatively in-app, both ultimately allowing the shopper to complete the payment. Overall, QR code payments are extremely quick, secure and simple to use, which is why their popularity has been increasing over the years. In fact, Juniper Research reports that by 2025 QR-code payment users will reach 2.2 billion globally, constituting 42% of all mobile phone users. 

Concluding Remarks

As technologies have evolved exponentially over time, so have customer expectations. Nowadays, customers expect to pay effortlessly and quickly, while failing to meet these expectations can lead to high cart abandonment and dropout rates. Therefore, payment innovations such as One-click payments, Pay-by-Link and QR-code payments are key to facilitating quick and convenient payments. Truly, these functionalities are crucial for ensuring customer satisfaction and thus also contributing to the success of your business.

 

 

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Sunil Jhamb

Sunil Jhamb

Founder and CEO

WLPayments

Member since

03 Jun 2020

Location

Amsterdam

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7

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This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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