Click to Pay: Securely enhancing online one-click checkout 

Click to Pay is a streamlined, secure, and user-friendly online payment method, designed to simplify digital transactions for consumers and merchants. Rather than manually enter their card details at checkout, consumers can create a digital profile that securely stores their payment credentials. They can then use that digital profile with participating merchants with a single click. 

Click to Pay was developed in response to growing consumer demand for fast, frictionless payment experiences, particularly in light of the rise of eCommerce and mobile commerce.

It was first launched in 2019 when the four leading credit card networks, Visa, Mastercard, American Express, and Discover, partnered to create a unified digital checkout standard. This initiative aimed to address the challenges consumers faced with the inconsistent and fragmented nature of online payment experiences. 

Click to Pay is built on EMV® Secure Remote Commerce (SRC) specifications. These specifications offer a framework for secure eCommerce payment solutions, defining interfaces and protocols for virtual payment terminals. Previously, eCommerce sites had their payment methods, requiring consumers to enter card details, remember passwords, or use third-party wallets. While effective, these methods often caused checkout friction, higher cart abandonment rates, and security issues. 

With Click to Pay, merchants now have a universal, interoperable solution that streamlines the checkout process but significantly enhances security through using tokenization, dynamic cryptograms, and other advanced security methods. The Click to Pay architecture allows for the secure transmission of card information, reducing fraud risk and making it easier for merchants to integrate a unified payment solution across platforms and channels.

While deceptively simple on the front end, enabling consumers to pay for purchases with a single click, Click to Pay involves an extensive process on the back end:

1. Enrollment
   Enrollment happens one of two ways: Consumers proactively sign up for Click to Pay through a participating merchant’s platform or a card network’s portal, or they do so when making a purchase. Consumers only need to enter their card information once, and the system automatically generates and stores a unique token to represent their credentials. EMVCo, the global body behind Click to Pay, is pushing for issuing banks, in addition to merchants and card networks, to support enrollment; we can likely expect this change to roll out within the next year or so. 
2. Initiation
   A consumer selects the “Click to Pay” option at checkout, initiates a purchase, and then selects which card linked to their digital profile to use to make a payment. They are then prompted to authenticate their identity, often using a one-time password (OTP) sent to their phone number or email. If the consumer has previously enrolled in the Click to Pay program, the interface will securely retrieve their stored tokenized card information through a secure authentication protocol. 
3. Authorization
   The Click to Pay system initiates that transaction by transmitting the consumer’s tokenized card information to the merchant. Since these payment credentials are tokenized, the merchant never handles the raw card data, only the token. The merchant’s payment gateway communicates with the payments network to validate the token and request authorization.
   
   The token is mapped to the consumer’s actual card details within the card network’s system, which sends an authorization request to the issuing bank. The issuer reviews transaction details, confirms fund availability, verifies transaction legitimacy, and then approves or denies the transaction. 
   
   A unique cryptogram is generated for each transaction and attached to the token. This ensures that if the token is reused, the cryptogram will not match, and the transaction will be rejected.
4. Confirmation
   Once the issuing bank has approved the transaction, it sends an approval message back to the merchant, confirming the purchase. Since the token and cryptogram were verified, the transaction is securely processed and settled without exposing sensitive payment details. The merchant then proceeds with order fulfillment, and the consumer receives a successful payment notification. The payment network updates the consumer’s Click to Pay digital profile, adding relevant details about their transaction history.

Click to Pay is a secure payment method designed to protect consumers from fraud and provide a smooth online shopping experience. Built on EMV® SRC Specifications, it incorporates several advanced security features that work together to safeguard sensitive information throughout every stage of the payment process. These features include: 

• Tokenization: One of Click to Pay’s core security features, tokenization replaces a consumer’s card credentials with a unique, randomly generated token. Tokens are used to process payments instead of actual card numbers, keeping card data safe from hackers. They can only be used for specific transactions, so they don’t hold value outside those transactions, protecting consumers’ payment information during purchases.
  If a consumer’s card is lost, stolen, or compromised, their bank or digital wallet provider can easily deactivate the token associated with that card in the Click to Pay system. This prevents the token from being used in future transactions, without the need to replace the entire card or re-enroll in Click to Pay. 
• Encryption: Encryption is crucial in protecting consumer data during transmission. All sensitive information in Click to Pay transactions, including tokens and other payment-related data, is encrypted end to end. Even if data is intercepted during the transaction process, it remains unreadable to unauthorized parties, ensuring data is securely transmitted between the consumer, merchant, and payment processors. 
• Dynamic cryptograms: Click to Pay uses dynamic cryptograms to create unique cryptographic signatures for each transaction, making it resistant to fraud such as replay attacks.
• Fraud prevention mechanisms: Click to Pay uses multiple fraud prevention mechanisms to detect and prevent fraudulent transactions. Payment networks leverage sophisticated machine learning algorithms to analyze transaction patterns, identify anomalies, and flag suspicious activity in real time. Additionally, the system may prompt further consumer authentication for high-risk transactions, such as multi-factor authentication (MFA) or OTPs. 
• Regulatory compliance: Click to Pay is built by the Payment Card Industry Data Security Standard (PCI DSS), a set of stringent security standards designed to protect cardholder data and prevent fraud. This ensures that Click to Pay follows best practices for securing sensitive information, processing payments, and maintaining the integrity of the payment system. Compliance with PCI DSS, and regulations such as the Revised Payment Services Directive (PSD2) in Europe, ensure that consumers’ rights and data are protected at every stage of the transaction process. 
• Minimal data processing: Click to Pay reduces the amount of consumer data needed for transactions, lowering the risk of data breaches by reducing the attack vector. Merchants only receive tokenized data, which means they never handle or store the consumer’s actual card credentials, further lowering the risk.
• Regular security audits: Regulatory bodies, financial institutions, and payment networks perform thorough security audits and vulnerability assessments of the PCI DSS. These audits quickly identify potential security gaps and ensure the system complies with evolving security standards.

Consumers aren’t the only ones who benefit from Click to Pay. Merchants also stand to gain from supporting this innovative payment method. Here’s how:

• Convenience: Click to Pay offers a major advantage by allowing consumers to make one-click payments. This eliminates the need to repeatedly enter card details for every purchase, creating a more seamless shopping experience, especially at frequently visited sites.
  Click to Pay speeds up and simplifies the purchasing process by streamlining the checkout process. In a world where online consumers expect to complete checkout in four minutes or less, this added simplicity can improve conversion rates and reduce cart abandonment rates.
• Security: Click to Pay leverages advanced security methods, including tokenization, encryption, and dynamic cryptograms, to ensure that consumer payment information is never exposed during transactions. These mechanisms make it nearly impossible for fraudsters to steal and misuse the payment data stored within Click to Pay’s digital profiles. The process is backed by major card networks, providing consumers with trusted brand assurance.
• Enhanced shopping experiences: Click to Pay integrates with various eCommerce platforms and websites to provide consumers with a consistent, user-friendly experience. Whether shopping on a desktop, tablet, or mobile device, Click to Pay offers a smooth and familiar checkout experience, reducing the friction consumers often encounter with disjointed payment systems. 
  Roughly three-quarters of consumers say they shop online using their mobile device, this consistency can lead to greater satisfaction, as consumers can access the same secure, easy-to-use interface across all their favorite online retailers. Click to Pay streamlines the online shopping process by removing the requirement to enter card details or go through complicated checkout steps, allowing consumers to complete transactions with a single click.

Consumers aren’t the only ones who benefit from Click to Pay. Merchants also stand to gain from supporting this innovative payment method. Here’s how:

• Increased conversion rates: By eliminating the need for manual data entry and reducing friction at checkout, merchants can significantly increase conversion rates — according to one report, by up to 35% — while reducing cart abandonment rates. This combination enables merchants to capture more revenue from potential sales, making eCommerce operations more profitable. 
• Enhanced security: Through tokenization, Click to Pay replaces consumers’ card information with a unique, randomly generated token that cannot be reverse-engineered to access the original payment details. This greatly reduces the risk of data breaches, protecting merchants from the potential fallout of compromised payment information and increasing consumer trust and loyalty. Click to Pay also complies with PCI DSS, which is essential for any merchant handling card information and enables them to avoid costly fines and penalties. 
• Improved customer experiences: Consumers demand speed and convenience at checkout; Click to Pay delivers exactly that. By enabling faster, one-click transactions, Click to Pay improves the overall customer experience — an important consideration when 50% of consumers factor in how easy a merchant’s checkout process is when deciding where to shop. The better the shopping experience, the happier customers are, which can lead to repeat purchases and long-term loyalty.
  
  Click to Pay is fully optimized for mobile devices, ensuring a smooth and responsive experience regardless of screen size or platform. Merchants can tap into a growing segment of online shoppers by offering frictionless mobile checkout.
• Data analysis and marketing insights: Although thanks to tokenization, Click to Pay doesn’t provide merchants with direct access to payment data, it does enable them to access customers’ transaction histories. These histories hold valuable insights about consumers’ purchasing patterns and preferences, which merchants can use to make data-driven decisions to refine marketing strategies, improve product offerings, and personalize shopping experiences.
• Global market expansion: With support for multiple currencies and seamless cross-border payments, Click to Payenables merchants to tap into new markets without the complexity and friction associated with traditional cross-border payment methods. As a result, businesses can grow beyond borders and serve customers worldwide more effectively.
• Technological integration and compatibility: Click to Pay is designed to integrate seamlessly with a merchant’s existing point-of-sale systems and eCommerce platforms, reducing the time and effort needed to adopt new and emerging payment methods. This enables merchants to take full advantage of Click to Pay’s benefits without significant technical disruption. This broad compatibility ensures that merchants can continue to use their preferred technology stack while benefitting from advanced payment security and simplified checkout processes.

Here’s a breakdown of potential challenges to be aware of, and strategies to overcome them:

Complex integrations

Although Click to Pay is designed to integrate seamlessly with existing eCommerce platforms, integration can be difficult with custom-built systems or older payment infrastructures. To avoid this challenge, merchants should work closely with their payment service providers (PSPs) or technology partners when setting up Click to Pay and use software development kits or pre-built APIs provided by payment networks.
Merchants should conduct thorough testing in a sandbox environment before going live to identify compatibility issues before the launch. 

Customer adoption

Even though Click to Pay makes the checkout process easier for consumers, some may be hesitant to try a new payment method, especially if they are unfamiliar with how it works or have security concerns. Merchants can plan for this by educating their customers about the convenience and security of Click to Pay, with easy-to-understand instructions. Highlighting key benefits such as faster checkout, trusted payment networks, and robust security features can encourage adoption; discounts or loyalty points for first-time users can also incentivize usage. 

Cost of ongoing maintenance

While implementing Click to Pay may require a nominal upfront investment, ongoing maintenance — including system updates, applying security patches, and staying compliant with regulatory changes — can inflate the total cost of ownership. Using cloud-based solutions or software as a service platform can reduce the burden of on-premises management, as these services often include automatic updates and compliance management, helping merchants control costs.

Technical maintenance and support

The success of Click to Pay depends on the seamless integration of various systems, including payment gateways, card networks, and merchant platforms. If any of these components fail or experience downtime, it may result in failed transactions or disrupted checkout processes. To address these challenges, merchants should consider investing in robust technical support and monitoring solutions. It’s crucial to partner with a reliable PSP that offers 24/7 support and system monitoring with detection tools that alert merchants to any issues before they impact customers.

Fraud and chargeback management

While Click to Pay enhances security, fraud chargeback risks still exist, especially when dealing with unauthorized transactions or customer disputes. Implementing a multi-layered fraud prevention strategy that includes tools such as artificial intelligence-powered fraud detection, transaction monitoring, and MFA can alleviate this concern, as can utilizing Click to Pay’s built-in fraud prevention mechanisms, such as cryptograms and OTP authentication.

Customer privacy concerns

As consumers become more privacy-conscious, they may have concerns about how their data is being handled, even with the security features Click to Pay offers, which can lead to lower adoption rates. Merchants should always be transparent about their data handling policies and that Click to Pay utilizes advanced security mechanisms. Implementing strict data privacy policies that comply with regulations such as the General Data Protection Regulation and the California Consumer Privacy Act and making them easily accessible can further reassure customers that their data is safe.

Interoperability privacy concerns

Although Click to Pay is designed to be widely compatible with different platforms and devices, merchants may still struggle to ensure seamless interoperability across all systems. Merchants should work closely with their PSPs and technology partners to ensure that Click to Pay is properly integrated into all aspects of their business, conduct thorough testing to raise and resolve interoperability issues, and ensure all systems support EMV® SRC Specifications.

To set up Click to Pay, merchants should:

1. Choose a payment gateway or processor. Most major payment gateways and processors are now integrated with the Click to Pay service, which makes choosing one that supports your preferred payment type easy.
2. Contact your payment gateway or processor. Contact your payment gateway or processor to discuss integrating Click to Pay into your online checkout. 
3. Redesign your checkout page. Feature the Click to Pay button prominently on your checkout page and offer clear instructions for the process.  Your payment processor provides APIs to integrate Click to Pay and manage authentication on your website.
4. Spread the word. Let your customers know that you’ve implemented Click to Pay to streamline the checkout process and provide support for using it through website messaging, email campaigns, and in-store signage. 

With ACI Worldwide, setting up Click to Pay is easy. We’ve already done the heavy lifting of setting up API integrations, which means all you need to get started is to reach out to your ACI representative to enable it. 

Ready to implement Click to Pay? Let’s talk.