What Are One-Click Payments? Business Benefits To Know

One-click payments offer buyers a seamless checkout experience by automatically filling in their billing and shipping details with just one click. While one-click payments streamline the purchase process for customers, they also provide strategic benefits for merchants looking to boost sales and optimise operations. 

In this blog, we will explore what one-click payments are, how they work, and the key business advantages of implementing this payment option.

Understanding One-click Payments

One-click payments allow customers to complete online purchases with a single click by saving their payment credentials on file. When shoppers check out on a merchant’s website or mobile app for the first time, they enter their name, address, payment method, and other billing details.  The merchant then stores this information securely using tokenisation to mask sensitive financial data. The stored payment information is automatically populated into the checkout fields on subsequent visits. 

Today, one-click is supported by all major digital payment providers, including PayPal, Visa, Mastercard, American Express, and Discover. It can be easily integrated into any e-commerce platform like Magento, Shopify, WooCommerce, and BigCommerce. 

What are One-Click Payments?

One-click payments allow customers to complete online purchases with just one click by automatically filling in saved payment details like credit card information and shipping addresses. This streamlines the checkout process for repeat customers and boosts conversion rates for e-commerce businesses.

6 Business Benefits of One-Click Payments

1. Increased Conversion Rates

One-click payments significantly increase online conversion rates since they streamline the checkout process. According to research by Baymard Institute, the average cart abandonment rate drops from over 70% for multistep checkouts to less than 1% for one-click transactions.  When buying only takes a single click, more customers follow through with purchases instead of abandoning filled carts midway.

2. Higher Average Order Values 

With one click removing barriers, shoppers tend to spend more per order on average. They are less likely to remove or change items in their carts when the checkout is seamless. Research shows that average order values increase by 20-30% with enabled one-click payments.

3. Repeat Purchase Incentive 

Saved payment details encourage customers to return to the merchant’s site and convert more frequently. According to PayPal, merchants see 11% higher repeat purchase rates and 7% more frequent buyers by offering one-click checkout. It builds loyalty by rewarding repeat customers with a smoother experience each time.

4. Actionable Customer Insights  

Detailed transaction records from one-click orders provide a wealth of actionable data. Merchants gain valuable insights into purchase behaviours, spending patterns, abandoned carts, and popular products. 

5. Reduced Operational Costs

With fewer transactions left, one-click payments translate to substantial savings on payment processing fees for merchants. It also lowers customer service costs by minimising issues around incorrect billing details. Integrating one-click is more cost-effective than maintaining separate loyalty programs or membership subscriptions to reward repeat buyers.

6. Enhanced Security 

While one-click speeds up transactions, it also implements strong security measures. Sensitive financial data is tokenised and encrypted at checkout. For high-value orders, additional authentication levels can be activated. The automated process reduces human errors and makes it harder for fraudsters to steal payment details than manual re-entry card numbers.

How Do One-Click Payments Work?

The process of one-click checkout typically operates as follows:

• Step 1: Upon the customer’s first checkout experience with an online business that supports one-click checkout, they must input the relevant payment information, including credit card details, debit card details, or bank account information.
• Step 2: The payment processor then securely stores this payment method and associates it with the customer’s account. In subsequent interactions, customers can conveniently access the information they stored using their registered email address.
• Step 3: When the customer purchases with the same retailer or merchant that utilises the same one-click checkout service, the system promptly identifies the customer and grants them immediate access to their stored payment details. This enables the customer to finalise transactions with a single click effortlessly.

Secure Your One-Click Payments with Tokenisation

The best way to secure your One-click payments can be through tokenisation. It allows customers to pay seamlessly while protecting their sensitive card details.

Tokenisation works by replacing sensitive card numbers with unique tokens. When a customer enters their payment information, a token is generated to represent the card. The merchant then stores this token instead of the actual credit card number. So, even if cyber criminals were to breach a merchant’s database, all they would find are meaningless tokens instead of actual payment data.

“Tokenisation simply refers to the replacement of actual card details with an alternate code called the ‘token’. It is used for recurring payments or in cases where merchants have stored the card details for providing faster checkout experience,” says Rahul Jain, CFO, NTT DATA Payment Services India.

Tokens are generated, managed, and secured by tokenized card providers. Each token can only be used for a specific merchant and customer. If a token is compromised, it can easily be replaced without needing to update the actual payment card. This reduces fraud and provides an extra layer of protection for consumers. 

Today, you can easily tokenise your card and make your online purchases seamless.

Experience Seamless Online Payments with NTT DATA Payment Services 

At NTT DATA Payment Services, we understand the importance of one-click payments for customers and merchants. We help businesses achieve seamless & secure checkout experiences through our payment gateway.

NTT DATA Payment Services offers a complete payment solution to advance both your offline and online businesses from,

• Online Payment Gateway in India
• POS machines
• IVR payments
• Mobile applications, and
• Bharat QR Scan and Pay

Boost Your Business Revenue With One-Click Payments

One-click payments have revolutionised the online shopping experience by removing friction from the checkout process. It delivers clear and measurable benefits for merchants, including increased sales, higher average orders, more repeat purchases, deeper customer insights, and reduced costs. 

As consumer demand for seamless digital experiences grows, one-click will remain an essential payment option for e-commerce businesses to boost conversion rates and optimise operations.

Also, you can get frequent updates on nttdatapayments Instagram page.

Frequently Asked Questions (FAQs)

1. What are one-click payments?

One-click payments allow customers to complete online purchases with a single click by automatically filling in saved payment and shipping details. This streamlined checkout process boosts conversion rates for e-commerce businesses.

2. How do one-click payments work?

When customers checkout for the first time, their payment and address info are securely stored using tokenisation. On return visits, this data is auto-populated so they can buy with one click after reviewing their order.

3. What are the benefits of one-click payments for merchants?

The benefits of one-click payments for merchants are as follows:

• Increased sales
• Higher average orders
• More repeat purchases
• Customer insights
• Low cart abandonment

4. Are one-click payments secure?

Yes, while speeding up transactions, strong security measures are implemented, like tokenisation and encryption. Additional authentication layers can also be enabled for high-value orders.

5. Can I save multiple payment methods for one click?

Yes, most one-click systems allow customers to store different payment options like various credit/debit cards or digital wallets. They can select the preferred payment method at checkout from the saved options.