by Carolina Fannin
Monday, February 28, 2022
Reading Time: 10 Minutes
Invisible payments are becoming increasingly common during the pandemic, driven by the digitization of purchases. But do you know what these are and how you can adopt them in your company?
All companies, especially the B2C ones, know that when a customer pays for a purchase, any small friction can lead to some unpleasant situations, such as annoyances, ulterior motives and even a lost sales.
This happens more and more often as consumers have become accustomed to a more fluid payment experience. Therefore, they are generally not happy going back to a less convenient way.
But what are invisible payments, how do they work, and what do you need to do to prepare for this new way of transacting? Find out below!
What are invisible payments?
The term “invisible payment” refers to online transactions that can be initiated and completed without any specific interaction, such as asking for card details.
There is still no hard and fast standard or definition for what counts as invisible payment, as retailers and financial institutions are still in the process of creating and innovating ways to make payments easier and faster for customers. are in.
For merchants, innovation in payments can mean new business opportunities. After all, by accepting newer forms of payment, it is possible to attract more customers, in addition to attracting a younger and more tech-savvy audience.
How have payment methods evolved?
For a long time, credit and debit cards were the easiest way to pay for things, for the simple reason that carrying specific amounts of cash or writing checks was not enough.
More recently, smartphones have given birth to digital walletWhich allows customers to make contactless payments by simply unlocking the device, placing it next to an enabled terminal, and confirming the payment.
Here in Brazil, we also have picsAn instant payment method that is already widely used for transfers between individuals and for payments including e-commerce.
With this development in mind, it makes sense that the next phase of contactless payment There are transactions that do not require any payment instrument.
And that’s exactly the idea behind Invisible Payments: eliminating the need to provide additional credentials for payment authentication. Instead, the invisible payment system automatically identifies and authenticates the customer.
examples of invisible payments
Now that you understand the concept better, let’s look at some examples of invisible payments and understand how they can be adopted in your company!
Every payment that occurs automatically can be considered invisible, which is the case with recurring payments!
After registering the payment method in the first purchase, the user can make the next payment using the already registered data in a secure and extremely simple way!
For example: When contracting a subscription plan like Netflix with recurring payments and selecting a credit card as the payment method, the consumer has to fill in the data at checkout only once (in their first purchase) since the next monthly installments Will happen. will automatically come to the selected method.
1-Click purchases are also considered invisible payments, because, when registering a credit card only once, some platforms allow data to be stored, making payments more agile, thanks to tokenization, a technology Which stores data by means of encryption.
In this purchase model, user interaction is required only when selecting the product and clicking the buy button to confirm the order, as the card data is stored in your account or digital wallet.
Used for some time here in Brazil, tags, such as Sem Parar and Connect Car, were originally designed to automate toll and parking fees.
However, this technology has also become a payment option for shopping mall and drive-thru tickets.
In this model, invisible payment works as follows: Using a registered balance or payment method, the consumer can choose to make a purchase via a tag, walk through a toll or gate, or notify the drive-thru attendant about the payment. Can do.
Amazon Already Offers Invisible Payments Through Technology In Its Branded Supermarkets just walk outWhich allows the store to function without a checkout box.
The US giant uses a range of overhead cameras and pressure-sensitive shelves to automatically detect what consumers put in their carts.
Payments can be made by scanning a QR code in the Amazon app, using a credit or debit card linked to your account, or by recognizing the palm of your hand.
Upon exiting the store, customers will be automatically charged to the virtual cart and will receive a digital receipt. Welcome to the future!
These stores are currently present in the United States and the United Kingdom.
Are invisible payments secure?
It can be difficult to understand how automated, unobtrusive authentication – which requires no action from the customer – can be kept fraud-free.
But it is possible. As stealth payment systems seek to carry out their transactions without cards, mobile apps and other accessories, they often rely on encryption, machine learning and artificial intelligence to avoid this type of problem and secure customer data.
future of payments
The pace of payments technology continues to accelerate, fueled by competition among retailers and the demand for contactless transactions driven by the pandemic.
As more consumers become comfortable with the idea of paying automatically, companies will face increasing pressure to adopt higher-tech systems.
To do so, they must begin investing in payment systems that provide the technology needed to drive the adoption of invisible payments.
Are you already offering your customers the ease and convenience of invisible payments? What do you consider to be the biggest advantage of investing in this technology? tell us!
Also read: Welcome to the era of invisible shopping
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