Merchants can sign up for a new service to let customers pay for online purchases with a mobile device. Visa Checkout is now available in the United States, Canada and Australia and works with any brand of credit or debit card.
Retailers who have already signed up to use Visa Checkout include Neiman Marcus, Pizza Hut, Staples and United Airlines.
Data provided by comScore shows that Visa cards were used in 47% of online spending in the United States during the first quarter of 2014. When asked what factored into their choice to use Visa cards, survey respondents cited security, ease of use and loyalty benefits as top reasons.
“As people spend more time and money online, particularly using mobile devices, they are demanding a fast, secure and frictionless way to shop using the payment cards they already know and trust,” said Visa Inc. CEO Charlie Scharf.
Visa Checkout works on merchant’s site
Customers shopping on a site using Visa Checkout won’t have to leave the site in order to pay for purchases. They can pay using their debit or credit card on a computer, smartphone or tablet. Visa Checkout works from within mobile apps as well. Customers enter a username and password to make secure payments using Visa Checkout.
Research shows that customers often do not complete the checkout process online, even after filling their online shopping carts. Cart abandonment rates have been shown to be as high as 68%, according to eMarketer. On mobile devices, the rate is even higher, with 86% of folks leaving a site before completing a purchase.
Visa Checkout replaces V.me online payment service
This is not the first online checkout service offered by Visa. The credit card processing network introduced V.me in 2012. Visa Checkout is replacing this product. Retailers who will continue using Visa to process their online payments include 1-800-FLOWERS, Beyond the Rack, Cineplex Entertainment, Jos A. Bank, LiveNation, MovieTickets.com, Newegg, Teleflora, Ticketmaster and Wine Enthusiast.
Sam Shrauger, senior vice president of digital solutions at Visa Inc. says that customers are eager for a simple way to pay online. “People aren’t looking for another wallet,” says Shrauger. He said Visa Checkout is easier to use and more secure than V.me and gives customers an easy way to complete online purchases.
Banks participating in Visa Checkout include Bank of America, Chase, Citi, U.S. Bank, Wells Fargo and more than 180 other financial institutions around the world.