It’s been nearly five years since Click to Pay (originally known as Secure Remote Commerce) was introduced. jennifer marrinerVice President of Global Acceptance Solutions master CardKaren Webster said, “The real-world use cases are much broader than we imagined, spanning consumer and B2B transactions.”
Online receptionists that use tokenized virtual cards to store payment information are gaining ground around the world. Currently, the company’s Tap on Phone feature has been implemented in over 75 countries, and Click to Pay has debuted in 30 markets.
greenfield opportunities
Still, one-third of online transactions are still made through manual entry of card and other personal information.
This is an important greenfield opportunity for Click to Pay to address, and Mulliner said Mastercard is in discussions with merchants to reduce checkout times by eliminating manual data entry with Click to Pay. He said that it has been demonstrated that the time period can be shortened. More merchant adoption will naturally lead to more consumers adopting click-to-pay, she said.
“Tens of thousands of merchants recognize this value proposition,” Marriner said, and the value is most immediately apparent in markets that rely on card-based payments. And while early use cases may have evolved through the provisioning of tokens into digital wallets, tokenization has now advanced to the point where it is used in conjunction with biometric authentication for connected car commerce.
“With more than 25% of e-commerce transactions being tokenized, this space will continue to grow as retailers focus on providing consumers with the right experience and offering the right products and services. I expect to see innovation,” Marriner said. into the hands of the customer. ”
Mobile checkout, the charm of omnichannel
“The physical world and the digital world are all converging,” Marriner told Webster.
The ubiquitous device in the palm of our hands, the smartphone, is becoming an increasingly popular acceptance device for sending payments and for businesses to request payments.
With the evolution from traditional hardware-driven acceptance to software-driven and cloud-driven solutions, mobile phones have become a means of facilitating payments for retailers large and small. Currently, about three in five Mastercard in-person transactions are contactless, he said.
Integrating these experiences in a way that provides the highest level of security and experience for merchants, consumers, and other players remains critical to meeting the needs of an increasingly mobile-centric customer base.
Three major concerns
No matter the environment, consumers value three things above all else: speed, security, and convenience.
Click to Pay, she says, accomplishes all three while increasing merchant approval rates (up to 3% by recent estimates), thereby increasing revenue. For card issuers, Click to Pay reinforces the trust and loyalty that consumers already expect, Marriner said.
Marriner said Click to Pay will help streamline the fragmented and inconsistent experience that exists with today’s online payments, and across the spectrum of traditional payments, the broader range of interactions will help manage security. I said it helps rationalize the fact that it’s going to be difficult.
“Tokenization is fundamental to our business,” she told Webster, noting that Mastercard has doubled the number of tokens it processes in the past two years alone. She said 3.5 billion tokens were processed across the network in December alone.
She says that with tokenization securing card-on-file and embedded payments, and the proliferation of platforms such as Netflix, Uber and retailers, account opening and credential storage should be combined with recommended biometric protocols. He said it was a seamless effort. by the consumer. Click to Pay also connects a “single profile” across multiple different devices, browsers, and merchants.
Marriner says, “The checkout payment experience is now much smoother and without disruption to shopping or service. …Payment occurs naturally at the end of the checkout flow.”
