Managing a small business means going above and beyond merely meeting customer expectations. And when it comes to payment processes, shoppers want more than a bare-bones, standard transaction. These days, an easy, seamless checkout experience is in demand.
In this environment, frictionless payments are gaining momentum. Think mobile wallets, one-click checkouts, and stored payment details—all hassle-free checkout experiences where customers can pay quickly without unnecessary steps or interruptions. In fact, according to research from PYMNTS, more than half of shoppers report that experiencing friction at checkout caused them to leave a purchase halfway through the payment process.
Here’s what you need to know about frictionless payments, plus a roundup of the top options.
What are frictionless payments?
Frictionless payments are transactions that minimize steps during the checkout process, allowing users to experience an intuitive shopping journey with minimal effort. Often, this involves shoppers preloading their payment information and preferred shipping address via a digital wallet service like Shop Pay. Not all frictionless payments require digital wallets, however. Any tech that speeds up the payment process can help make it frictionless, including tap-to-pay cards.
A frictionless payment process that facilitates faster transactions can offer significant benefits such as improved customer satisfaction and lower cart abandonment rates.
Frictionless payment integrations and features
Frictionless payments are available both online and in person. Thanks to ongoing evolution in the payments space, these types of payments will likely only get more popular.
Contactless payments
Enabling contactless payments lets customers securely complete a purchase by tapping their card or mobile wallet (such as Google Pay or Apple Pay) on a POS terminal, tablet, or smartphone without needing to swipe a card. Research shows that 51% of US shoppers use some form of contactless payments, and adoption is only expected to grow. Experts estimate that the value of tap-to-pay transactions will increase by more than 150% by 2028.
These payments use near-field communication (NFC) technology, a specialized type of radio frequency identification (RFID) technology that uses radio waves to identify objects. A device reads information embedded in a card chip or wireless device when in close proximity.
QR code payments
QR code payment links make completing a purchase easy. Once a customer scans such QR codes, they land on a page where they can choose from different payment methods. This has become especially popular in the food service industry, where customers can look up menus, order their meals, and pay for their food all via QR code.
Accelerated checkout
Services like Shop Pay, Apple Pay, and PayPal Fastlane all offer accelerated checkouts, which make it easy for customers to pay with credit cards, debit cards, and other popular payment options. By accepting digital wallets at your store using a service like Shopify Checkout, you can facilitate speedier shopping.
By pre-loading their payment information and shipping info in the accelerated checkout provider, customers can buy products from online stores with a single click. This boosts your conversion rate and minimizes cart abandonment. Shop Pay, for instance, lifts conversion by up to 50% compared to guest checkout, and outpaces all other accelerated checkouts by at least 10%.
Biometric payments
Biometric payments—which come in the form of facial recognition, fingerprint scanning, iris scans, and palm scanning—allow shoppers to buy something using their unique physical traits. This form of up-to-date technology is particularly secure because fraudsters can’t steal a customer’s unique biomarkers. A frictionless payment method with these extra security measures can yield greater customer trust. Consumers control whether or not biometric payments are enabled. The setting can be toggled on and off within digital wallets like Shop Pay.
Frictionless payments FAQ
How does frictionless checkout work?
Frictionless payments are payment options that make the checkout process as simple, streamlined, and convenient as possible. These include contactless payments that accept mobile wallets and QR code payment links. Repeat purchases, increased customer loyalty, and cashless transactions are just a few advantages of using these payment systems.
What is customer friction?
Customer friction refers to any challenges that might make the shopper pause or abandon their shopping cart. This could be due to broken payment links, clunky or slow payment systems, or unsecured payment data. You can reduce customer friction by improving payment functionality, offering recurring payments, or multiple payment options.
Is tap to pay safe?
Tap to pay can be more secure than other payment solutions and methods, such as swiping with a card, since it uses encryption and tokenization, and unique codes generated for each transaction.
