E-shop payments will be simplified. You omit numbers from the card

Card association Mastercard plans to launch a new method of payment in e-shops in the Czech Republic this year called Click to Pay. The service has been operating in the USA since October 2019 and in last year in seven European countries – Spain, the Netherlands, Great Britain, Italy, Sweden, Switzerland and Ireland.

The main advantage for consumers should be easier and faster payment. They will not have to copy numbers from Credit cards – they appear to them automatically during the transaction. Some large e-shops, who can afford individual solutions, already offer people similar card number storage – but often encounter client distrust.

Click to Pay will now extend this opportunity to other merchants for whom developing their own solution was more expensive. The novelty is based on the uniform Secure Remote Commerce standard of the EMVCo organization, which promises the same level of security and convenience as when paying by card in brick-and-mortar stores. The solution is independent of the device used, operating system, application or internet browser.

Mastercard will soon start testing the service in the Czech Republic with selected banks and merchants who want to support it among the first. Their specific names – except ČSOB, which is one of the partners of the project – however, the representatives of the company did not disclose.

Consumers will be able to register for the Click to Pay service either directly on the Mastercard website or via electronic banking – ČSOB will allow them to do so with its cards. “Subsequently, the card is automatically tokenized – a digital copy is created exclusively for Click to Pay,” explains Luděk Slouka, Product Management Director at Mastercard for the Czechia and Slovakia.

In e-shops, the client then chooses the Click to Pay option when paying – he will recognize that the store supports it by the logo of this service. It will be a graphic with the image of double arrows, next to which the brand of an international card company, whose card the client can use for such payment.

“The customer chooses to pay using the offered card stored in the Click to Pay service. For greater clarity, the service will also offer a picture of the card provided by the bank that issued it. The new service recognizes users by the device used for online shopping. This completely eliminates the need for users to enter a card number or other information, ”adds Slouka.

In addition to Mastercard and other companies, EMC is a member of the aforementioned EMV organization, which has prepared a standard for the new service Visa. It can therefore be expected that the service will start operating in the Czech Republic for cardholders of this brand.

The new service is intended to bring more completed purchases to merchants. The Mastercard survey found that one in five clients considered copying card data to be too time-consuming. The complication for roughly the same share (18 percent) is that he often does not have a wallet with a payment card with him at the time of purchase. Almost half of respondents (48 percent) on Click to Pay appreciate speeding up and simplifying payments the most. In the end, traders will also know this, as confirmed by previous numbers from the USA.

In the Czech Republic, according to Mastercard, the volume of payments on the Internet (turnover of the e-commerce sector) increased by 33 percent last year, compared to 29 percent the year before. It is confirmed that the transition of other people to online shopping at the time of the closure of the stone shops during the pandemic was not a one-off swing, but a permanent change in behavior. Competitive Visa has not yet published these results for last year.

With the number of cards issued, Mastercard is the market leader in the Czech Republic. According to the Bank Card Association, the share of cards issued under its brand reached almost 57 percent at the end of 2020, while competing Visa had less than 39 percent of the market. The total number of issued cards in the Czech Republic exceeded 13 and a half million. The association has not yet published more recent statistics at the end of last year.

Olga Skalková

He has been writing about banks and financial institutions since the 1990s. She was part of the economic team of Hospodářské noviny, she also wrote on the websites iHNed.cz and Aktuálně.cz. Now he writes externally for Pívání.cz and special supplements of HN. She likes to spend time with her family … Other articles by the author.

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