Cart abandonment is a persistent problem for online retailers, with some studies estimating that 70% of carts are abandoned before a purchase is made. Since every purchase matters to a business's bottom line, retailers should examine all options for decreasing cart abandonment while offering customers a simple shopping experience that will convince them to return.

For many businesses, one-click checkout is a possible solution: a way to simultaneously encourage sales and fight cart abandonment. Below, we'll explain what one-click checkout is, how it works and how it can benefit businesses.

What's in this article?

• What is one-click checkout?
  
• How does one-click checkout work?
  
• Does one-click checkout work with every product?
  
• Is one-click checkout secure?
  
• What are the benefits of using one-click checkout?
  
• How to choose a one-click checkout solution
  

What is one-click checkout?

One-click checkout allows customers to purchase items in their shopping cart with a single click. This streamlines the checkout experience by not requiring buyers to manually input details, such as their name, email, payment information and shipping address, before completing the checkout process.

For one-click checkout to work as intended, the customer must already have an account with the business's payment processing service, with a valid payment method on file. Once the customer logs in or is recognised by the payment processor as a returning customer, the one-click technology allows them to complete the purchase straight from the cart, without needing to input any additional information.

Since 1999, when Amazon first created one-click checkout (also called "1-click checkout"), the function has been adopted by numerous payment processors, including Stripe. Any customer who has an account with a payment processor that offers one-click checkout can simply visit the e-commerce website of any retailer that offers one-click checkout, log in and enjoy an easy, fast checkout experience.

How does one-click checkout work?

Although it varies slightly depending on the business and payment processor involved, one-click checkout generally works like this:

1. When a customer checks out for the first time with an online business that offers one-click checkout, they input the payment details for their credit card, debit card, or bank account.
   
2. The payment processor stores this payment method and attaches it to the customer's account, which the customer can access in the future using their email address.
   
3. When the customer makes a purchase with that retailer, or any other retailer that uses the same one-click checkout provider, the customer is instantly recognised and gains immediate access to their stored payment information, allowing them to complete transactions in a single click.
   

For example, a business that uses one-click payments with Link by Stripe on its e-commerce storefront gives customers a way to pay for purchases quickly and easily. Link is a reusable payment method with immediate notification that autofills customers' payment and shipping details at checkout. Customers store their payment information with the Link app, and they can reuse those saved payment details with any business that has Link enabled, taking advantage of the one-click "shortcut" again.

Compare this to the old way of checking out, when a customer had to create an individual account on every retail website they visited, type out their full shipping and payment information, and then confirm it again before clicking the "pay now" button. After that, an additional confirmation page or two may have popped up, giving the customer an opportunity to change their mind about the purchase, or even forget to click that final confirmation button, abandoning the purchase by accident.

The one-click approach saves customers time while leaving fewer opportunities for the sale to fall through. With each page that must load in a checkout process, there's a risk of error, internet disruption, or loss of customer interest. A customer could mistakenly assume the final cart-review page is the last step in the process and never click the final confirmation button to complete the order.

When you add in additional complications, such as payment pop-ups, extra card-verification forms and promotional upsells, it's easy to understand why the cluttered checkouts of the past are quickly falling out of favour with customers. They want to get in, place their order and move on with their lives. One-click payments deliver the efficient experience that customers have increasingly come to expect.

Does one-click checkout work with every product?

One-click checkout doesn't work with every product. While it's useful for low-value items, paying with a single click can feel too fast for high-value items such as plane tickets or furniture. Products that require customisation, age restrictions, or complex shipping requirements also typically need more than one step at checkout.

Items with a low price point that customers generally don't need to think too hard about are often a good fit for one-click checkout.

Is one-click checkout secure?

Since one-click checkout uses the technology offered by the payment processor, and not the retailer itself, its security levels match those of the processor. As a minimum, businesses can expect fraud protection and PCI-validation compliance, both available with Stripe's Link solution.

What are the benefits of using one-click checkout?

One-click checkout offers numerous advantages for businesses. These include:

Efficient purchase experience

The most obvious benefit of one-click checkout is efficiency and customer satisfaction. Customers experience a simple payment process that takes them from browsing to buying in fewer steps. Customers who dislike filling out long forms with personal details and payment information will have fewer reasons to put off their purchases.

Fewer abandoned baskets

One-click checkout helps the business complete more sales, lowering the cart abandonment rate and making customers happier with their overall purchase experience. Any company hoping to grow with minimal investment can prioritise one-click checkout to boost customer loyalty and improve sales completion rates.

The data behind one-click checkout is clear. In a survey of more than 4,000 shoppers who have abandoned carts in the past, the number-one reason behind their decision was cost. But the number-two reason, which resonated with 24% of respondents, was reluctance to create an account. One-click checkout eliminates that hassle for shoppers who already have an account with your one-click payment processor.

In the save survey, 17% of customers abandoned carts for a different but related reason: a complicated checkout process. One-click checkout solutions simplify the experience, decreasing the chance that customers will leave without making a purchase.

Brand recognition

For customers shopping at a retailer for the very first time, seeing a one-click purchase button from a processor they recognise and trust puts them at ease. A customer might be reluctant to manually input their credit card information on an unfamiliar retail site, but they might have no problem clicking the Stripe button on the same retailer site, since they've trusted Stripe with their payment information in the past.

Website and browser compatibility

It can be frustrating to shop online from a new or unfamiliar device, like a partner's phone or a public computer. To successfully log in, the customer must remember the retail account password, possibly triggering a password reset email in the process.

One-click checkout eliminates these headaches because the customer only has to verify their login with the payment processor, not the individual retailer. Plus, Stripe's one-click checkout offers a simplified login option by requiring the shopper to enter only the email associated with their Stripe account, which sends a text message to the account holder's mobile device for easy verification. Customers are free to shop anytime, anywhere, with fewer difficulties.

More accurate ordering

Ordering errors, such as entering a credit card account number incorrectly or shipping a product to an address that doesn't exist, are costly for businesses. By using a one-click checkout solution, the business ensures the payment data is already on file. Since the card information has already been used successfully at least once before, it's likely that it will be authorised for subsequent transactions. Because Stripe's one-click checkout is externally hosted, there's a lower risk that technical errors on the retailer's website will prevent a successful checkout.

Support for smaller, more frequent purchases

Shoppers are sometimes hesitant to buy only one small item, even if that's all they need at the moment. It can seem simpler to wait until there's a larger future order planned before going through the trouble of adding an item to the cart and checking out. The ease of one-click checkout means customers will have less hesitation about making a higher number of smaller purchases.

One-click checkout also works for customers who complete a large order and then realise they forgot an item. It's easy to add the item to the cart and check out a small second order in one step.

How to choose a one-click checkout solution

Retailers have many options when choosing a payment processor that offers fast one-click checkout, but not all offer the same benefits.

Before choosing a processor, ask yourself these questions:

• Does the payment processor allow for checkout customisation?
  
• Is the one-click solution widely recognised and trusted by customers?
  
• Will the checkout solution support shopping from any device, even when the customer is not logged in?
  
• Which security measures does the checkout solution offer?
  

Stripe users can access Link, which seamlessly connects cardholder information to any retailer that uses Stripe. With widespread brand recognition and the latest in card-security technology, Stripe helps you increase your credibility as a retailer, decrease cart abandonment and create an effortless checkout experience for your customers.