Visa Checkout is a secure way for consumers to purchase items without having to re-enter their credit card information for each new site.

With Visa Checkout, users can pay for products at online sites across platforms by logging in with their usernames and passwords. Pizza Hut is one of the retailers that have integrated Visa Checkout.

A competitor to PayPal, Visa Checkout provides an added layer of security to online shopping.

When cardholders are ready to pay for their purchases at stores that accept Visa Checkout, they'll be prompted with a pop-up to log into their accounts, select their payment method, and shipping address.

Visa already has a number of large retailers--including United Airlines, Neiman Marcus, Pizza Hut, and Staples--on board, and a merchant can integrate Visa Checkout in weeks, or possibly days.

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The credit card company also opened the doors to its San Francisco innovation center.

Until 1958, consumer credit worked on a one-off basis. Banks convinced merchants, one by one, to accept a consumer's personal line of credit, which the financial institution confirmed over the phone by checking its phonebook-like records. It wasn't until Bank of America introduced the BankAmericard--an entity later spun out and renamed Visa--that the plastic credit card and the now-familiar interactions of swiping and signing were introduced to the general public.

Visa hopes to once again reshape the way shoppers pay for their purchases--this time as commerce increasingly moves online and on mobile. The credit card company on Wednesday launched Visa Checkout, a secure way for consumers to purchase items without having to re-enter their credit card information for each new site. It also opened the doors to a new 112,000-square-foot innovation center in San Francisco.

"We recognize that the same degree of simplicity and ease of use for payment cards in the physical world does not exist for payment cards in the online world," senior vice president of digital solutions Sam Shrauger told Fast Company. "When consumers check out online, they don't want to spend a lot of time in payment."

With Visa Checkout--what Shrauger considers "almost like the online version of swipe"--users can pay for products across different platforms by logging in with their usernames and passwords. "We kind of view it more as a form-factor shift" for credit cards, he noted.

A competitor to PayPal, Visa Checkout works with Visa, MasterCard, Discover, and American Express cards, providing an added layer of security to online shopping. When cardholders are ready to pay for their purchases at stores that accept Visa Checkout, they'll be prompted with a pop-up overlay to log into their accounts and select a payment method and shipping address. Unlike PayPal, Shrauger said, Visa Checkout users never leave the merchant's website. "We've taken every bit of friction out," he said, noting the high shopping-cart abandonment rates online: 68% for a typical e-commerce site, 86% on mobile.

Visa uses more than 500 data points, such as whether a purchase originated from a trusted device, to flag suspicious transactions. "There's triple encryption of data that's flowing back and forth between the merchant" at the network, data-transmission, and account access levels, he added.

Merchants aren't charged additional fees aside from the interchange fees credit card companies levy to process transactions. The company already has 180 financial institutions and a growing list of retailers--United Airlines, Neiman Marcus, Pizza Hut, and Staples, to name a few--on board. New merchants can integrate with Visa Checkout within weeks or possibly days, Shrauger noted. "We will be everywhere you want to be in the digital world," he said.

[Image: Visa]

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5 Comments

  • Matthew Smith

    Until they can guarantee the safety offered by Pay-Pal in security and money back. Then they will still be second best. Have used Pay - Pal for years and pay everything with it .only ever had a couple of problems but they were resolved quick smart. and that was with the seller not Pay-Pal. Matthew from http://creditspoint.com/

  • Keith Horwood

    Have some concerns about security - surely username/password is a magnet for phishing style fraudsters?