Buzz
Have you ever spent some time browsing a site, adding items to your cart, only to second-guess your decision at checkout? Maybe you wondered if you truly needed those items, or perhaps your credit card was out of reach while you relaxed on your couch.
Soon, paying for online purchases will be a breeze, without the hassle of manually entering credit card details. The major credit card networks—Visa, Mastercard, Discover, and American Express—are collaborating to offer a seamless click-to-pay option across online stores. While it's super convenient, this ease of payment could lead to unintended splurges.
“The goal here is to replicate the simple, consistent checkout experience found in physical stores—one terminal, one method of payment, no matter the retailer,” explained a statement from the four card companies.
Why ‘Click to Pay’ is a safer option
Ted Rossman, an industry analyst at CreditCards.com, pointed out that EMV technology (remember when chip cards became a thing?) made in-person transactions more secure, pushing fraudsters to target online purchases. The new 'click-to-pay' feature adheres to strict security protocols that minimize the risk of exposing your card details during one-time transactions.
If you've used PayPal to shop online, you're probably familiar with the process: You log into your payment account, which is then connected to the retailer to complete your purchase. There's no need to type in your credit card number, nor do you need to store it in your browser. (If you have your card number memorized, that's a whole other story.)
Here’s what the new option will look like:
Cinemark and Rakuten have already integrated the click-to-pay feature on their sites, and by this fall, you'll also see it at BassPro, JoAnn Fabrics, Papa John’s, Saks Fifth Avenue, and more.
The drawbacks of 'Click to Pay'
Before you think that the credit card networks are only working in your favor, here's one of their main goals behind this new option: to combat cart abandonment.
If you've ever reached the checkout page, realized your credit card was out of reach (or just didn't want to bother entering your details), and left the site, you're exactly who the card companies are hoping to target. Part of the pitch to retailers is that adding this feature can reduce cart abandonment and boost actual sales.
Instead of relying on a cumbersome checkout process to act as a buffer for your impulse buying, you'll need to create your own strategies to avoid overspending.
“While a more efficient payment process benefits consumers, it’s crucial not to use this as an excuse to splurge impulsively,” Rossman remarked via email. “That’s the downside of such easy payments—retailers can take your money much quicker.”
