In online shopping, the payment method that allows card details to be entered once and then used automatically in later purchases is called 'one-click payment'.
The “one-click payment” technology, patented by e-commerce giant Amazon in 1999, can be described as a revolution in e-commerce transactions. This is because “one-click payment” technology not only changed the course of online commerce but also made Amazon the biggest player in this field.
So how does One-Click Payment work?
The logic behind “one-click payment” technology, used today on many online shopping sites, is very simple. After consumers enter their card details into the shopping site's payment form to buy a product, they can, if they wish, allow those details to be used for later purchases as well. When placing another order on the same site, they can pay with a single click without entering their card details again.
The fact that 'one-click payment' is a fast, easy and time-saving method has further increased its pace of adoption.
What are the advantages of “one-click payment” for businesses?
- It simplifies the shopping process.
- It encourages customers to visit the same shopping site more often and buy more products. Research has shown that sales on online shopping sites with single-step payment are 22 percent higher than on those with multi-step payment.
- It reduces cart abandonment rates.
- Payment methods that are not fast and easy cause customers to abandon their purchases.
How does one-click payment affect mobile shopping?
Because smartphone screens are small, multi-step payments are quite difficult in shopping; for this reason, purchases made from smartphones have not yet reached sufficient volume within online commerce. With the one-click payment method, users are spared the trouble of entering card details and will shop easily, quickly and reliably; customer loyalty and the frequency of site visits will increase.
