Mastercard Inc (NYSE:MA) and Visa Inc (NYSE:V) have staged a decision to drop the use of dedicated pay buttons for online shoppers. Following the cooperation accord, both the payment gateways will use the single payment eliminating the need for Mastercard Masterpass and Visa Checkout.
The payment giants have announced the decision to offer a single payment button for the online shoppers during the conference held in Las Vegas on Wednesday. It helps both the companies save investments for the separate payment gateways.
It is an indication that how payment processors are rethinking their strategy in the advent of the difficult difficult digital payments arena and retain the online customers from losing to giants like Paypal Holdings Inc (NASDAQ:PYPL) etc.
According to a spokesperson on Wednesday, American Express Company (NYSE:AXP), which holds the own payment button, is also supporting the move similar to the single payment option being discussed by both Mastercard and Visa.
The executives of Mastercard and Visa have discussed the shortcomings of maintaining separate payment buttons during an interview to the Wall Street Journal. They mainly discussed the confusion created to the online customers.
The Head of Payment Processing/ Solutions of Visa, Mr. T S Anil said the multiple buttons at the payment gateway do not serve any purpose. The separate Visa Checkout is likely to be replaced with a single payment button by the end of 2018.
The Executive Vice President (Digital Solutions) of Mastercard, Mr. Jorn Lambert said the pay buttons are cluttered and no space for separate buttons at the payment gateway. The move to replace the dedicated buttons with a single button is a significant step to eliminate the confusion to the customers and save maintenance costs.
However, the payment giants need to convince the merchants to incorporate changes to replace the dedicated buttons with a single payment button.
The online shopping is growing at a fast pace and more number of dedicated payment buttons are added the merchant sites. The replacement of multiple pay buttons with a single button reduces clutter and allows the customers to save their cards in digital wallets and complete the payments faster.