The rise of e-commerce has shifted customer behaviour and changed how customers expect to pay for goods and services online. According to a 2024 report from the Baymard Institute, over 70% of online shopping baskets are abandoned before the purchase is completed. One major factor contributing to this trend is the complexity of the checkout process. As customers become more tech-savvy and time becomes even more sensitive, there is increased demand for simple transaction experiences online. One-click payments are a recent innovation to address this specific issue.

Traditional checkout flows involve multiple steps and often require customers to re-enter their data for every purchase. One-click payments allow customers to make purchases with a single tap or click, once they have provided and stored their payment information in a secure environment.

Below, we explore the details of one-click payments, including the advantages they offer businesses, best practices for implementation, and considerations for maintaining security, trust and customer retention. As digital payments evolve, understanding this technology is important for businesses to remain competitive.

What's in this article?

• What are one-click payments?
  
• Are one-click payments and one-page checkout the same thing?
  
• How do one-click payments work?
  
• Benefits of one-click payments for businesses
  
• Best practices for one-click payments
  
• How Stripe can help
  

What are one-click payments?

One-click payment is a digital payment process where a customer can complete a transaction with a single click, typically after having entered their payment details during a previous purchase. This payment method stores the customer's billing information for future use, eliminating the need to enter this data in subsequent transactions.

Are one-click payments and one-page checkout the same thing?

Not exactly. One-click payments and one-page checkout are related concepts in the world of payments, but they serve different purposes. Here's a comparison:

• One-click payments

  • Usually require an initial setup where customers provide and authorise the storage of their payment information
    
  • Allow customers to complete a transaction using previously stored payment details with a single click
    
  • Focus on repeat transactions to offer quick purchase experiences
    

• One-page checkout

  • Condenses the entire checkout process onto a single web page
    
  • Aims to reduce basket abandonment rates by simplifying the checkout process
    
  • May include a one-click payment option as part of its offering
    

One-click payments and one-page checkout are both tactics for optimising online shopping. While they serve distinct purposes, they can complement each other to provide a more fluid purchasing journey. Here's how this works:

How they interact

Both are designed to minimise friction – one-click payments expedite the transaction process for repeat customers, while one-page checkout simplifies the process for both new and returning customers. A one-page checkout can incorporate a one-click payment option. When customers reach the one-page checkout, returning customers can select the one-click payment option to bypass manual input. Meanwhile, new customers can opt for a traditional checkout process on the same page and decide whether or not to save their payment details to use the one-click payment option in the future.

Optimisation

Retailers can use analytics to understand customer behaviour on the one-page checkout. They can see how many people opt for one-click payments and how many enter their details manually, and tailor the experience to suit their customers' preferences. Additionally, insights from one system can inform adjustments to the other. For example, if customers frequently opt out of storing their payment details during the one-page checkout process, retailers may be more transparent about data protection to increase the number of people adopting one-click payments.

When combined, one-click payments and one-page checkout can offer a more holistic and user-centric approach to online purchasing. By reducing the number of steps and potential obstacles that a customer might face, one-click payments and one-page checkout work together to drive both initial sales and encourage repeat business.

How do one-click payments work?

One-click payments have fundamentally changed the dynamics of how people conduct transactions, shifting the experience from a cumbersome, multiple-step process to one of swift completion. To appreciate their functionality and integration into payment systems, you'll need to understand the details of how they work.

Setup phase

• Customer initiation: The first time a customer conducts a transaction with the business, they enter their payment details, such as their credit card number, its expiry date and its card verification value (CVV) manually.
  
• Data storage: Once this initial transaction has been completed, the payment gateway prompts the customer to save these details for future transactions. This data is not saved raw – it undergoes tokenisation.
  

Tokenisation

• Process: Payment data is replaced with a randomly generated alphanumeric value, called a "token". This token, which has no intrinsic value, acts as a placeholder for the actual payment data.
  
• Security: Payment gateways and payment service providers facilitate tokenisation to protect sensitive payment data. The original payment data is stored securely in a vault and can only be accessed with the correct token.
  

Subsequent transactions

• Customer action: When the customer visits again in the future, the system recognises them, either through cookies, their account details or other authentication methods.
  
• Transaction execution: The customer can opt for a one-click payment. This triggers the system to retrieve the corresponding token and use it to initiate a transaction, without requiring the customer to re-enter their payment details.
  

Confirmation and completion

• Authentication: Two-factor authentication may be requested, depending on regional regulations and transaction values.
  
• Completion: After authentication, the transaction is processed in the same ways as a standard purchase.
  

Benefits of one-click payments for businesses

One-click payments have become common for good reason, as they offer several operational and experiential benefits when used strategically. Here's an overview of the main benefits that they can generate for businesses:

• Reduction in basket abandonment
  Basket abandonment is a top concern for online businesses. One-click payments simplify the checkout process, leading to fewer steps for the customer. This simplicity can reduce interruptions or other potential hurdles, increasing the likelihood that the customer will complete the purchase.

• Enhanced user experience
  Modern customers demand speed and convenience. One-click payments contribute to a positive user interaction, especially for repeat customers who are familiar with the platform. A smooth, frictionless experience can result in customers associating a brand with ease and reliability.

• Decreased risk of involuntary churn
  Subscription-based industries face a common challenge, which is involuntary churn resulting from outdated or changed payment details. One-click payments, especially via digital wallets, are an easy way to reduce this type of churn. These systems update card information automatically, ensuring that subscribers don't lose access to the services that they have subscribed to.

• Increased transaction speed
  Quicker checkouts can increase the number of transactions processed in a given time frame. This is particularly beneficial during peak shopping times or promotional periods, when high levels of traffic can slow down conventional checkout processes. One-click payments alleviate this bottleneck, allowing more transactions to be processed swiftly.

• Repeat business
  Customer retention is important for sustainable business growth. The convenience of one-click payments might incentivise customers to visit a platform again. When customers perceive the buying process as being easy, they may be more inclined to make repeat purchases.

• Reduced friction for impulse purchases
  Impulse purchases are often driven by the immediate desire to acquire or experience something. A fast checkout process, such as that offered by one-click payments, gives customers less time to change their minds. Businesses can make the most of these spontaneous decisions, potentially leading to increased sales.

• Competitive advantage
  Offering a variety of payment methods, such as one-click payments, can make an online retailer stand out from the competition – especially to customers who prioritise speed and convenience.

• Data insights
  Data drives decisions in modern businesses. When customers use one-click payments, businesses can gather consistent data on purchasing habits. This information can be invaluable, offering insights into product preferences, peak shopping times and even the efficacy of marketing campaigns.

One-click payments have changed how customers transact online, focusing on convenience and speed. This is as true for e-commerce businesses as it is for software-as-a-service (SaaS) subscriptions.

Here's how one-click payments can benefit businesses positively in a range of sectors:

• E-commerce and retail: Online customers have at least one thing in common, in that they want – and increasingly expect – quick and easy transactions. One-click payments minimise the steps to purchase, reducing basket abandonment and increasing conversion rates. Whether buying a dress or a laptop, customers appreciate the simplicity of a single click.

• Platforms: These digital spaces, whether for content creation or networking, thrive with simplified transactions. One-click payments facilitate swift user onboarding, subscription renewals and in-app purchases.

• Marketplaces: These platforms, which bring together multiple sellers under one digital roof, benefit immensely from one-click payments. Buyers often purchase from different sellers, and a swift payment process encourages repeat transactions and loyalty.

• On-demand services: From food delivery to ride-sharing, speed is everything – and that includes the checkout process. One-click payments expedite the process, making it convenient for customers to order services without cumbersome payment processes. This efficiency also enables service providers to complete more orders.

• SaaS: Software-as-a-service providers often work with recurring payments or tiered pricing models. One-click payments make upgrades, renewals and initial purchases simple, benefiting both the service provider and the end customer.

• Subscription: Subscription businesses should provide a friction-free renewal process, whether they sell digital magazines, streaming content or monthly snack boxes. One-click payments ensure that subscribers continue to enjoy the service without interruption.

One-click payments affect many important aspects of online business operations, from improving the customer experience to providing actionable insights that businesses can use to refine payment experiences and retain customers.

Best practices for one-click payments

Despite the simplicity of the customer experience for one-click payments, businesses need to take a rigorous approach to implementation and maintenance. Adopting best practices will support optimal performance and foster trust among customers. Here are the implementation and management practices that can boost your efforts surrounding one-click payments:

• Be transparent with customers
  Customers value clarity. Communicate the specifics of the one-click payment process clearly, especially regarding which payment methods are saved and how they can be updated or removed. This transparency builds trust and can help to mitigate potential disputes or misunderstandings.

• Update payment systems regularly
  Regular updates to payment gateways and other payment technologies can prevent system vulnerabilities and ensure that the one-click payment feature functions without glitches.

• Prioritise data protection
  Data breaches can erode customer trust rapidly. Adopt robust encryption methods and comply with data protection regulations. Additionally, conducting regular security audits and penetration tests is beneficial, in order to identify and rectify potential vulnerabilities.

• Offer opt-out options
  While one-click payments are convenient for many, some customers may prefer to enter their details manually for each transaction. Providing an option for customers to opt out of the one-click payment feature respects their preferences and enhances user agency.

• Educate the customer base
  Providing FAQ, guides or other resources about one-click payments can demystify the process for customers. When customers are informed, they're more likely to use the feature with confidence.

• Monitor and analyse customer behaviour
  Observing how customers interact with the one-click payment option can yield valuable insights. Regular monitoring can identify areas of friction or confusion, allowing businesses to make the necessary adjustments to improve the overall user experience.

• Maintain open channels for feedback
  Encourage customers to share their experiences with the one-click payment feature. Their feedback can help to continuously refine the system, identify issues and improve the service.

• Optimise for mobile
  A substantial number of transactions occur on mobile devices. Ensuring that the one-click payment system is optimised for mobile interfaces guarantees a consistent experience across all platforms.

One-click payments require a thoughtful and proactive approach. When your business prioritises transparency, user education and continuous improvement, you're laying the foundations for a successful and trusted one-click payment system. You'll also need to have the right technical and operational solutions, as well as the right payments infrastructure, to make it all work.

How Stripe can help

Optimizing online transactions involves a focus on agility and security—while avoiding a lengthy, disjointed, or confusing checkout experience. Customer expectations are high, and businesses in all sectors feel pressure to deliver an intuitive, fast payment experience, maintain a system that’s impenetrable to fraudulent actors, and scale infrastructure to accept any volume of payments. This is why carefully selecting the right payment technology—including a one-click payment feature—is so important.

Stripe’s Optimized Checkout Suite helps businesses fulfill customer expectations securely and efficiently with prebuilt payment user interfaces (UIs), access to more than 100 payment methods, and Link—Stripe’s one-click checkout solution. It simplifies and expedites the payment process, potentially increasing customer satisfaction and growing revenue. Here’s a quick overview of how Stripe’s Optimized Checkout Suite can help:

• Easy payment execution
  Businesses that accept payments online strive for smooth, fast transactions to keep customers satisfied. Stripe’s accelerated checkout feature, Link, stores customer information after the initial purchase. When customers see Link again, it instantly populates their saved payment details when they enter their email address, allowing them to check out 3x faster than non-Link customers.

• Reduced cart abandonment
  A complicated checkout process often leads to cart abandonment and a loss of potential revenue for businesses. Stripe’s Optimized Checkout Suite can help reduce the occurrence of this problem, making it easier for customers to complete their transactions quickly. The faster and simpler the process, the more likely customers will finalize their purchases.

• Versatility across various business models
  Stripe’s Optimized Checkout Suite works for a variety of business models, whether you run a subscription-based business for consumers, a SaaS company, an online retail platform, or an ecommerce venture. It can also work in conjunction with other Stripe services such as Billing or Tax to offer a cohesive and fast payment experience.

• Management of customer data
  Stripe securely manages customer data, storing key details such as card information in a PCI-compliant manner. This means businesses don’t have to worry about the details of data security and compliance when offering a one-click checkout.

• Broad currency support
  Stripe’s Optimized Checkout Suite is available for businesses that operate globally. With support for over 135 currencies, it allows businesses to offer the same speedy checkout experience to customers worldwide—without getting entangled in currency conversion issues.

• Security measures
  Stripe’s secure architecture includes fraud detection and other risk management features, safeguarding customer data and financial information during the one-click checkout process.

• Analytical insight
  Stripe provides analytics that allow businesses to monitor the effectiveness of their one-click checkout implementations, making it easier to gauge customer behavior and adjust business strategies accordingly.

To learn more about Stripe’s Optimized Checkout Suite, featuring prebuilt payment UIs, popular payment methods, and Link—which autofills payment information for faster checkout—visit Stripe Checkout.