The Green Sheet Online Edition
June 13, 2016 • Issue 16:06:01
Visa Checkout gains 12 million consumers worldwide
Visa Inc. stated May 17, 2016, that Visa Checkout is rapidly achieving global scale. The ecommerce solution, launched initially in 2014 in the United States, Canada and Australia, is designed to accelerate the online checkout process. Enrolled consumers need only a user name and password to complete the payment process on connected devices or within mobile apps. The solution enables consumers to store multiple credit and debit products from Visa and other payment card brands.
Company insiders credit Visa Checkout's simple user interface and flexible integration options with its rapid worldwide adoption. Sam Shrauger, Senior Vice President, Digital Solutions at Visa, said the product is designed to duplicate the ease and simplicity of in-store retail shopping online and on mobile devices. "Visa Checkout is the cornerstone of our digital product suite and is complemented by an array of innovative solutions we have built for today's merchants that are targeting the connected consumer," he stated.
More than 12 million consumers have enrolled in Visa Checkout, which is currently supported by more than 675 financial institution partners and 16 countries, according to company sources. Additionally, the solution has gained prominent early retail adopters, including Best Buy, Fandango, The Gap, Neiman Marcus, Pizza Hut, Staples and Starbucks.
During a recent Shoptalk commerce event, Visa released results from a new study by comScore Inc. that showed a 51 percent higher conversion rate among enrolled Visa Checkout customers when compared with customers using traditional ecommerce checkout methods. Additional Visa findings indicate Visa Checkout customers completed up to 86 percent of their online purchases. These facts demonstrate that shoppers who use Visa Checkout are more likely to complete online purchases and less likely to abandon shopping carts, the company stated.
Visa also revealed a diverse group of retailers now using Visa Checkout for online and mobile payments. They range from airlines to hotels to hospitality merchants, including for example, Alaska Airlines, Chick-fil-A, Cole Haan, HSN and Wyndham Hotel Group.
Despite their different business models, most retailers face similar shopping cart abandonment issues. Some payments analysts feel that when the checkout process is too complex for mobile devices, consumers tend to drop out and leave items behind in their shopping carts. Visa Checkout is designed to solve this issue and boost conversion rates by enabling payments in just a few clicks, said company representatives familiar with the solution.
More expansion planned
Visa is planning to roll out Visa Checkout to partnering financial institutions. Bank of America has already incorporated Visa Checkout into its online banking site by preloading customer Visa-branded debit and credit cards into Visa Checkout to speed customer adoption. Bank of America representatives estimate the auto-enrollment feature is adding thousands of new consumers per day to Visa Checkout.
The Visa Checkout page of Bank of America's website includes an enroll-now button. The bank encourages consumers to join the retail "express line" by using Visa Checkout at participating online retailers while maintaining standard Bank of America benefits such as cash back, reward points and the bank's zero liability guarantee. "When you're ready to buy, simply click the Visa Checkout button and pay with a single login," the website states.
Retail partners are also bundling Visa Checkout convenience with loyalty and rewards offerings. "Wyndham Rewards is the world's simplest and most generous hotel loyalty program, so it's a natural fit for us to be the first hotel group providing our millions of loyal members a simpler, easier way to book via Visa Checkout and our Wyndham Rewards app," said Noah Brodsky, Wyndham's Senior Vice President, Worldwide Loyalty & Engagement.
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