To win customers, marketplace businesses need to innovate constantly. One example of that is a one-click checkout system that allows customers to pay for their shopping without entering their data every single time. Read our complete guide to see how to best implement this solution for your business.
What is a one-click checkout?
One-click checkout is a way for customers to pay for their shopping instantly. It saves them the hassle of having to log in to multiple services, fill in and then review their personal information every time they buy online. Instead, the payment is conducted on the same page as the purchase.
One-click checkouts have been around since 1999. Invented by Amazon, they became a key element in creating its quick and painless shopping experience. Once the patent for one-click checkout technology expired, Amazon’s competition was free to release their own versions of this system. Currently, marketplace businesses have a wide selection of one-click solutions to choose from.
From the retailer's perspective, one-click checkouts solve the problem of abandoned shopping carts. According to Baymar Institute, at the beginning of 2020 cart abandonment rates were on average 69.57% across multiple e-commerce industries, Some of these carts were forfeited by users who lost patience with a lengthy payment process. One-click checkouts allowed them to complete a transaction quickly, increasing revenue for the businesses.
How does one-click checkout work?
The idea behind one-click checkouts is to make the payment as quick and easy as possible. For example, customers buying from shops run on Shopify only need to fill in their billing and shipping information once – and only when using this service for the first time. The data is then stored on Shopify’s platform and used with every online purchase.
Not every one-click checkout system stores the user's data. Some services allow retailers to hold on to customer’s personal information. The end result is the same: the users have to enter their data only once to enjoy the instant payment process.
Is one-click checkout secure?
The security of one-click checkouts will partially depend on the security of the party that holds the data. For example, if your marketplace uses a system that holds the customer’s information for you (like Shopify) then the security will be up to their standards. These services can offer additional layers of security like fraud protection, or compliance with the Payment Card Industry (PCI) validation standards.
If you decide to use a one-click checkout system that lets you hold users’ personal data on your servers, the security of this solution is in your hands. In this case, it is strongly recommended to add extra security measures to your marketplace website like 3D Secure and backend integration.
What are the benefits of using one-click checkout?
Secure payments are just one of the reasons why one-click checkouts are so popular. Users appreciate a more enjoyable shopping experience, support for smaller purchases, and simpler checkouts free of irritating typos whenever entering their payment details. Retailers often choose this technology as a way to minimize the number of abandoned shopping carts.
In the following paragraphs, we will look at each of these benefits individually.
Improved user and purchase experience
One-click instead of several is more than enough to make a difference in a purchase experience. In a digital world, users’ patience and attention span is a scarce resource. That is why, their favorite online interactions are those that require the least effort. TikTok videos, fast-loading websites, and emojis instead of written comments are just a few examples of that. One-click checkouts follow a similar principle – they minimize users' effort and in turn, make the entire experience more enjoyable.
Reduced cart abandonment rate
Sometimes, users pick several items that they wish to buy, but instead of proceeding to checkout, they leave the website altogether. This, in simple terms, is an abandoned shopping cart. But, marketplace businesses have another name for it: a lost opportunity.
Research shows, that the main reason for cart abandonment is cost – if the total price is more than the users are willing to spend, they decide to forgo the transaction. But there’s another reason. In 24% of cases, users left the website, because they didn’t want to create an account to complete their purchase. And another 17% left because the checkout process was too complicated. This is where one-click checkouts come in handy.
Instead of creating new accounts for every online shop they visit, users can pay for their shopping, using details they already entered in one of the one-click checkout systems. The users can complete their transactions instantly, using payment methods that they are familiar with. At the same time, markeplaces can turn abandonment carts into revenue. It’s a win-win!
Safe and simple checkout
The users of one-click checkout services like Stripe can log in using an e-mail address and a short code sent over a text. This saves them from having to remember different passwords to verify their identity or having to reset it every time they come back.
Less card info input errors
In 2021, Stripe’s report revealed that 42% of top businesses in Europe had three or more input-related errors in their checkout process, including failure to notify customers when they entered an invalid card number or attempted to pay with an expired card. For the US businesses, that figure was 46%. On top of that, 61% of businesses in Europe lacked the option that lets customer autofill their information.
With issues like these, it’s easy to imagine users making a mistake sometime during typing their sixteen digits long card number. For some of them, having to re-check their details and finding a typo is more than enough to feel frustrated or even discouraged from completing their purchase. Having their payment information stored in the one-click checkout system is a way to prevent it.
Support for smaller, more frequent purchases
Instead of buying only one item, customers may prefer to delay their purchase until there are multiple things in their shopping carts. It saves them the trouble of going through the checkout process (which we know can be overcomplicated) every single time they see something they want. One-click checkout removes that problem. Customers will be more willing to go with their smaller purchases since every single one of them can be completed in a matter of seconds.
One-click checkout is especially useful for customers who made a large order but still need to add a single item. The system allows them to add the missing item to their cart, then click once to finish the transaction. It saves time and removes the pain of repeating the checkout process.
Improved conversion
According to research, by the next year half of the world's population will use digital wallets. The total value of all the transactions is expected to reach more than 1.5 trillion dollars. That’s a huge cake to share between retailers who are looking for different ways to get the bigger piece. One of the ways to improve the conversion of their e-commerce websites is by introducing a one-click checkout system into their payment process. By doing so, the retailers are removing frictions in the user experience and boosting customer satisfaction. This translates directly to improved conversion and an increase in revenue.
What are the best one-click checkout options?
Ever since Amazon’s patent for “1-click order” expired, the industry has seen the rise of a number of different systems for instant payment. The competition is fierce, and in order to make your choice easier, in the following paragraphs, we will briefly introduce 6 one-click checkout solutions that, in our opinion, are worth looking into. These systems are:
- Shop Pay by Shopify
- CartPop
- Instant Checkout
- Link with Stripe
- PayPal One Touch
- Meta Pay
Shop Pay by Shopify
Shopify’s one-click checkout system is available with its e-commerce platform. Customers can save their data (including billing, email address, and payment details) and access them using the “autofill” option. The data suggest that this solution is popular with users, as the checkout rate is 1.72 times higher than that of regular checkout systems.
CartPops
CartPops is a WooCommerce plugin, that generates URLs that can be used to complete the checkout process. While it is not a typical one-click checkout system, from the user's perspective the results are the same – checkout and payment can be done with a single click. For those interested in seeing how it works – CartPops offers a free plan.
Instant Checkout
Another proposition that is not a typical one-click checkout solution is the Instant Checkout Shopify plugin. For 10 dollars a month, you can give your users an option to skip the checkout process by using the “buy it now” button – even if your website doesn’t have one. For those who prefer to avoid adding expensive features to their website’s code, it’s a clever way to smooth out your payment process.
Link with Stripe
Retailers who are looking to add a one-click checkout system to their marketplace businesses should take a look at the Link. It stores credit and debit card information for users of a worldwide payment gateway called Stripe. Instead of being subscription-based, Link charges a percentage of every successful transaction.
PayPal One Touch
PayPal needs no introduction. Founded by, among others, Elon Musk, this online payment giant has been used at least once by 85% of Americans this year. PayPal's OneTouch is a fully-fledged one-click checkout system which stores card details, billing information and provides instant payment for its users. Plus, it offers the level of security that can be expected only from a company of PayPal’s size.
Meta Pay
“Instant payments” is not the first thing that comes to mind when we talk about Facebook. However, Mark Zuckerberg had an idea to let people pay online using their social media accounts. And so, Meta Pay was born. Right now, this one-click checkout service is available free of charge, but only for Shopify’s users in the US.
How to choose a one-click checkout solution
If you are a marketplace app owner looking to add a one-click checkout solution to your business, your ideal system should:
- be compatible with your platform (eg. WooCommerce, Shopify, etc.),
- convenient for customers (like Meta Pay),
- include chargeback fraud protection,
- have a reliable backend for order processing,
- include payout options,
- offer checkout customization,
- be widely recognizable by users.
Below, we will explain why some of these points matter in the context of your business.
Does the payment processor allow for checkout customization?
Your one-click checkout solution should give you the option to customize the checkout experience to make it better suited to your business and your customers. For example, Shopify’s customization feature called Checkout Extensibility allows to:
- offer users discounts and promo codes,
- add different payment methods,
- give users space to add additional information and notes,
- offer multiple shipping methods.
Is the one-click solution widely recognized and trusted by customers?
If they trust it, they will use it. This, in simple terms, is why you should be looking for a one-click checkout system from a trusted source. Your customers will want to feel that they are leaving their sensitive data in a secure space. But, going with a popular brand isn’t always the right approach. Even checkout systems built (or backed) by tech giants like Bolt and Stripecan face financial problems or even straight-up fail. Like in everything, research is important.
Will the checkout solution support shopping from any device, even when the customer is not logged in?
The flow of your checkout will be different for some users, for example depending on their device. When looking for a one-click checkout solution, you should pick the one that lets you tailor:
- customer segments (guest, business account, registered user),
- the device (mobile, or desktop),
- type of check-out (one-click, single or multiple-page checkout),
- the origin of purchase (your website, Facebook page etc.)
If your one-click checkout is not working on some of the devices, the problem might be in your website's code, and not the system itself. For example, in WooCommerce it is a well-documented issue, that could be caused by a number of things:
- conflict created by a theme or plugin,
- AJAX error,
- problems with transactional emails,
- memory limit (set by WordPress).
Need help implementing a one-click checkout solution?
One-click checkouts have come a long way since 1999. We are at the point where not having one leaves you far behind your competition. Better user experience, improved conversion rate, and fewer abandoned shopping carts are the key reasons to implement one for your business.
There is no real drawback to one-click checkout solutions, assuming you will pick the right one. Most of them will only cost you a fraction of the additional income that you could make. And if you want to make the most of one-click checkout technology, make sure to contact us and let our experts help you find a solution that is right for you and your business.
