Visa Checkout, the online checkout option from Visa, just secured two major merchant partners that are adding the online checkout button to their sites.
Visa announced yesterday (Jan. 12) that new merchants to add Visa Checkout as a digital checkout option include Starbucks, Walgreens, the NFL shop, HSN and Match. Walmart.com was another major merchant to top its most recent list of merchants that offer the digital checkout option.
This comes at a time when, as Visa pointed to in its news release about the new merchants, mobile commerce is growing eight times faster than traditional commerce; eCommerce is growing four times faster.
“Delivering a seamless payment experience for our customers is a priority for us,” said Ryan Records, VP of Starbucks Global Card, Commerce and Payment.
According to Visa’s latest data, more than 10 million consumer accounts and 600 financial institutions in 16 countries have signed up to use Visa Checkout since its launch 18 months ago. The biggest push for merchants toward a digital checkout solution like Visa Checkout — besides the security benefits of having an online tokenized payment solution — is the ability to convert more shoppers due to the reduction of consumer checkout friction.
In fact, data from comScore shows that enrolled Visa Checkout shoppers tend to convert into buyers 86 percent of the time. It also indicated that Visa Checkout merchants had a 51 percent higher conversion rate in comparison to users who used merchants’ traditional online checkouts.
What the data show is that shoppers are more likely to convert because Visa Checkout enables consumers to checkout without having to enter personal credentials such as payment information and address every time they checkout. The case is even stronger for mobile shopping.
“We are seeing tremendous Visa Checkout growth as we enter 2016 and are greatly encouraged by the enthusiastic response from consumers and merchants alike,” said Sam Shrauger, Senior VP of Visa’s Digital Solutions. “By re-engineering the Visa card for the digital world, we’re delivering a better way to pay through connected and mobile devices.”
Speaking of mobile shopping, Visa also provided its data on shopping during the 2015 holiday season. Its latest figures show that 45 percent of Visa Checkout shoppers used a smartphone, tablet, or other mobile device in making an online purchase during the 2015 holiday period. Six months prior, that same figure was only one-third. And between July and November of 2015, the number of Visa Checkout customers who use mobile at checkout increased by 10 percent.
The data provided by Visa also shows that the digital checkout option has helped them reach new customers and boost sales. In a survey of six Visa Checkout merchants, roughly 46 percent of customers who used Visa Checkout during a promotional period during the holidays were new to that specific retailer. During the holiday shopping period, comScore data show that transaction size for Visa Checkout orders were 7 percent higher, when compared to non-Visa Checkout orders.
Visa Checkout is available in 16 countries around the world, including: Australia, Argentina, Brazil, Canada, Chile, China, Colombia, Hong Kong, Malaysia, Mexico, New Zealand, Peru, Singapore, South Africa, United Arab Emirates and the United States.