A recent report indicates that 45% of U.S. online merchants have requested one-click checkout solutions from their payment service providers (PSPs) in an effort to enhance conversion rates.
The joint research of PYMNTS Intelligence and Mastercard, “The Role of PSPs in the Checkout Experience: U.S. Edition” revealed that one-click checkout is the most sought-after checkout technology, wanted by 45% of U.S. online merchants, surpassing secure card-on-file solutions, which 27% of merchants have requested from their PSPs.
One-click checkout solutions are designed to let customers complete online purchases with a single click, skipping lengthy forms or additional steps during checkout by securely storing payment and shipping information.
In card-on-file solutions, merchants also securely store a customer’s payment card information for future use. Although customers don’t need to fill in the stored details manually, they might still need to confirm this information through multiple steps (e.g., selecting the card on file and verifying details) rather than a single click.
The primary motivation for adopting new checkout technologies is to boost conversion rates, with nearly 72% of merchants citing this as a key factor. Challenges such as cart abandonment and lengthy checkout times are still widespread, with nearly 7 in 10 U.S. e-commerce merchants struggling with user experience during checkout. They might lose almost one-third of potential sales due to the complexity and slow speed of the checkout processes. However, the aforementioned checkout solutions can address these issues, leading to increased sales, better customer experience and a speedier checkout.
At the same time, the second most cited deciding factor in the process of checkout technologies selection is the ease of integration with current operating systems. It is important for more than half of the surveyed merchants.
One such solution is Mastercard’s Click to Pay. It reduces checkout times by 50%, offering a smoother payment experience that minimises transaction abandonment. Another popular example is PayPal’s Fastlane, which can process transactions faster than traditional payment systems by as much as 30%, enabling consumers to complete purchases swiftly, further enhancing conversion rates.
