The battle of the titans – Click to Pay

?Key takeaways?

• The competition between card networks (Visa, Mastercard) and big tech (Apple, Google) is about more than payments, it’s a fight to own the customer relationship and the loyalty that comes with it.?

• As ecommerce fraud surges, tokenization is proving to be a critical fraud-fighting tool. It offers consumers peace of mind with secure payments and builds trust.?

• Click to Pay combines the simplicity of digital wallets with the cost-efficiency merchants and issuers need. For success, its adoption must focus on delivering an intuitive experience for customers and enabling smooth integration for issuers.?

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The checkout process has become the hottest battleground in payments and the players aren’t pulling any punches. On one side, you’ve got the schemes, Visa and Mastercard rallying behind their one click checkout solution, Click to Pay; and on the other, you have big tech, Apple and Google who are waving the flags for their digital wallets. The prize? The end customer’s loyalty.?

But this isn’t just about payments, it’s about owning the moment at checkout. Let’s break it down in plain terms.?

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What is Click to Pay??

Launched in the U.S. in 2019, Click to Pay is now expanding globally, gaining traction in markets like Europe. Backed by Visa, Mastercard, American Express and Discover, Click to Pay combines all cards into one tokenized, super-secure payment method. It’s fast, it’s frictionless and it works on any device, no app or branded electronic required. It is essentially a digital wallet for ecommerce allowing users to click, pay and move on with life.??

For merchants, Click to Pay doesn’t charge extra fees, unlike digital wallets from Apple or Google. For issuers, it’s a cost-effective alternative that doesn’t compromise on security or convenience.?

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The rise of digital wallets?

Apple Pay and Google Pay have been crushing it, thanks to their ability to integrate biometric tech (hello, Face ID) with an uninterrupted checkout experience. Tap, pay, done. Customers love it.?

But here’s the catch, not only do those wallets charge merchants fees, but because they are device specific, they keep the customer relationship firmly in their ecosystem, meaning they have access to spending data.??

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Who really owns the customer??

Digital wallets are pulling ahead by building loyalty and becoming the go-to payment option. Meanwhile, card networks are doubling down on Click to Pay to reclaim that moment at checkout.?

For card networks, the stakes couldn’t be higher. Click to Pay lets them stay front and center with customers, offering the simplicity of a digital wallet while keeping merchants happy.?

For issuers, the message is clear, network tokenization isn’t just a nice to have feature, t’s essential. It’s the technology that keeps payments secure, reduces fraud and ensures customers feel confident every time they click to pay (see what we did there).??

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Why tokenization matters?

As ecommerce continues to boom, so does fraud. With global ecommerce fraud losses projected to exceed $104 billion in 2029 (thanks, Juniper Research), the stakes have never been higher. But here’s the good news, tokenization is stepping up to the plate, proving to be the ultimate fraud-fighting sidekick.?

For consumers, tokenization means peace of mind. Every click, tap and swipe are backed by layers of security that make their payment details nearly untouchable. It’s a big confidence boost at a time when online fraud is making headlines. And let’s be honest, trust is the secret sauce that keeps customers coming back for more.?

So, are we surprised to see a rise in tokenization-based solutions? Not at all. Card networks like Visa and Mastercard are doubling down on tokenization because it’s not just about stopping fraud, t’s about sending a clear message and saying we’ve got your back. And in a world where convenience is king, that level of security is exactly what the payments industry needs to thrive.?

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What’s next for checkout experience??

Click to Pay has all the ingredients to be a game-changer, but its success hinges on one thing, adoption. For customers, it needs to be as intuitive as scrolling Instagram. For merchants, implementation has to be simple and cost-effective. For issuers, it’s about staying relevant in a world where convenience rules.?

In the end, the battle for checkout dominance isn’t just about payments, it’s about trust, simplicity and building loyalty.?

Interested in learning more about Click to Pay, check out our article on Click to Pay – All you need to know??

FAQs?

Q: What is Click to Pay and how does it work??

A: Click to Pay is a one-click checkout solution backed by Visa, Mastercard, American Express and Discover. It allows users to combine all their cards into a tokenized payment method, making online transactions fast, secure and frictionless. There’s no need to download a specific app or own branded devices.?

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Q: How is Click to Pay different from digital wallets like Apple Pay or Google Pay??

A: While Click to Pay offers the same ease of use as digital wallets, it has key differences:?

No additional merchant fees: Unlike Apple Pay and Google Pay, Click to Pay doesn’t charge merchants extra fees beyond the standard card processing rates.?

Device compatibility: Works across all devices and browsers without requiring specific hardware or operating systems.?

Ownership of customer relationship: Click to Pay keeps the customer relationship with card networks and issuers rather than tying it to a specific ecosystem.?

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Q: Why is tokenization so important in Click to Pay??

A: Tokenization replaces sensitive card details with unique, transaction-specific tokens, ensuring customer payment information stays secure. This makes stolen data virtually useless to fraudsters.?

With ecommerce fraud projected to exceed $104 billion by 2029, tokenization is a critical tool to fight fraud, boost consumer confidence and protect merchants.?

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Q: What are the benefits of Click to Pay for issuers and merchants???

A: For Issuers:?

• Provides a cost-effective and secure payment solution.?

• Increases customer loyalty by offering a safe payment experience.?

For Merchants:?

• Reduces cart abandonment with a frictionless checkout process.?

• Avoids the added fees associated with digital wallets.?

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Q: What’s driving the competition between Click to Pay and digital wallets??

A: The battle comes down to owning the checkout moment and, ultimately, the customer relationship. While digital wallets build loyalty by keeping customers within their ecosystem, Click to Pay gives card networks and issuers a way to reclaim that space by offering an intuitive, cost-effective alternative.?

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