Click to Pay is revolutionising online checkout with its seamless, secure experience. While beneficial for consumers and merchants, it presents unique operational and compliance challenges for issuing banks. Rivero's Amiko and Kajo solutions are purpose-built to digitalise and automate these complexities, transforming Click to Pay from a mandate into a strategic advantage for financial institutions.
The promise of Click to Pay: a simpler online world
Remember the frustration of forgotten passwords, endless card entry, and navigating clunky online checkouts? Click to Pay (C2P) emerges as the solution, designed to simplify and secure the digital payment experience across participating merchants. Backed by major card networks like Visa and Mastercard, it's quickly becoming the new industry standard for online transactions.
For consumers, Click to Pay means:
- No passwords: Payment details are recognised securely, no login required.
- Faster checkout: Fewer steps, less friction.
- Improved security: Card data is tokenised and encrypted.
- Recognition across sites: Once enrolled, users are automatically recognised.
For merchants:
- Higher conversion: Fewer abandoned carts due to frictionless checkout.
- Lower fraud exposure: Implementing better security protocols reduces risk.
- Standards alignment: Joining the C2P ecosystem keeps merchants future-ready.
Beyond the front-end: what Click to Pay means for issuing banks
While Click to Pay brings undeniable advantages to the front-end user experience, it introduces a new layer of operational complexities for the issuing banks that power these transactions. As card networks push for Click to Pay to become an always-present, card-level feature, issuers face both challenges and significant opportunities.
Navigating the new operational landscape
For issuing banks, Click to Pay isn't just a new button; it's a new ecosystem with well-defined operational things to consider.
- Complex integration
Integrating Click to Pay seamlessly with existing legacy systems can be a technical headache, demanding significant IT resources and expertise.
- Evolving scheme mandates
Payment networks frequently update their rules and requirements. Staying compliant with new Click to Pay mandates, deployment deadlines, and evolving security protocols requires banks to be on top of this consistently.
- Data management & privacy
Issuers are responsible for collecting, verifying, and securely managing cardholder data for Click to Pay profiles. This includes lifecycle management, such as updating details or handling lost/stolen cards, all while adhering to data privacy regulations like GDPR.
- Fraud & dispute management
While Click to Pay enhances security, it doesn't eliminate fraud entirely. Issuers must be equipped to handle disputes for C2P transactions, requiring robust processes for investigation, data collection, and communication with cardholders and networks.
- Customer support & education
Guiding cardholders through enrollment, managing their preferences, and resolving any issues related to their Click to Pay profiles adds new dimensions to customer service operations.
Seizing the future of online payments
Despite the challenges, Click to Pay offers strategic advantages for forward-thinking issuing banks:
It helps deepen cardholder relationships. By offering a secure and convenient online payment method, issuers increase the use and value of their cards, earning loyalty and top-of-wallet status.
It can also contribute to a reduction in fraud and chargebacks. Thanks to features like tokenisation, encryption, and stronger fraud prevention protocols, Click to Pay may result in fewer fraudulent transactions and reduction in costly chargebacks.
Another benefit is higher authorisation rates. The streamlined data exchange and standardised security model can lead to a higher percentage of approved C2P transactions, improving payment performance overall.
And by adopting Click to Pay, issuers align more closely with digital payment trends and card network initiatives: an important step in future-proofing their operations.
Simplifying payment operations
At Rivero, we believe that embracing innovation like Click to Pay shouldn't mean adding layers of complexity to your payment operations. Our mission is to simplify the intricate world of card payments for financial institutions, turning operational burdens into strategic advantages.