Newegg adopts Visa Checkout to streamline mobile checkout
Retailers can be apprehensive of giving new payment systems a chance but also the potential for Visa Checkout’s capabilities. Given Newegg’s online limitations, the retailer must provide as many purchasing options to ensure a seamless checkout process.
“Visa Checkout is an important component of our mobile wallet solution, which also includes Google Wallet on iOS and Android,” said Soren Mills, chief marketing officer at Newegg North America, Los Angeles. “The Visa Checkout partnership is a natural extension of our longstanding collaboration with Visa, which includes a great track record of promotions to give consumers additional incentives as they shop Newegg.
“The implementation of Visa Checkout caters primarily to early adopters, which are a key customer group to Newegg and its partners. Our co-marketing efforts with wallet programs such as Visa Checkout drive increased awareness and transactions.”
Checkout is checking out
Currently offering Paypal and Mastercard’s MasterPass, Newegg’s addition of Visa Checkout ensures it offers customers multiple options.
Newegg’s efforts reflect a desire to create a more seamless experience and reduce shopping cart abandonment.
“Newegg’s implementation of Visa Checkout aims to offer more diverse one-click payment options to customers,” said Nathalie Reinelt, industry analyst at the Aite Group, Phoenix. “Not everyone has a PayPal account, so Visa customers can now set up their payment credentials through Visa Checkout to have a better frictionless online shopping experience.
“Online retailers have long figured out that having a seamless checkout process reduces shopping cart abandonment rates and providing multiple payment options just increases their conversion potential.”
Online shoppers can enter the promo code “VCO” to save on all purchases made through Visa Checkout and the savings will last through August 25.
When making a purchase, users will go through the same steps as usual but will select the Visa Checkout option. Users can then create a free Visa Checkout account or simply input their login and password information without leaving the Newegg Web site.
Visa Checkout allows users to store multiple cards from a number of vendors, such as Visa, MasterCard, American Express and Discover.
Pizza Hut and Staples are among the merchants that have accepted Visa Checkout payment options, which are promising to streamline mobile checkout by digitizing consumers’ credit cards.
The new offering from Visa seeks to make payment easier by storing credit-card information online so that e-payments can be made on participating merchants’ Web sites without entering anything other than a name and password. It is replacing Visa’s previous efforts to roll out a mobile wallet through the V.me offering (see story).
While surveys this year have shown that security concerns are one of the biggest holdups in mobile payments adoption, Visa was hoping a soon-to-be released tokenization service would resonate with both consumers and merchants.
Visa previously got behind standardizing tokenization – which replaces a credit card’s 16-digit account number for mobile payments with a stand-in called a token. Now the company is readying the release of a tokenization service in September that will enable tokens to be stored directly in mobile devices as well as Web-based and cloud-based applications, a move it hopes will spur new commerce experiences (see story).
Newegg, aims to provide a convenient and easy process for its customers.
“We believe the Visa Checkout service gives consumers a convenient way to shop online, particularly on mobile devices,” Mr. Mills said. “Many of Newegg’s customers shop using their tablets and phones, and reducing the checkout process to just a few clicks is a win-win solution for both conversion and customer convenience.”
Caitlyn Bohannon, editorial assistant for Mobile Commerce Daily, New York