Visa Announces the Launch of Click to Pay in Japan by 2025, Revolutionizing Online Shopping

Visa to Launch Click to Pay in Japan by 2025

Visa Worldwide Japan, under the leadership of CEO Chetan Kithoor, has announced an exciting initiative to launch Click to Pay in Japan by 2025. The company will collaborate with various partners, including card issuers and payment service providers, to implement this convenient payment solution steadily across the country.

Click to Pay, adhering to EMVCo standards, eliminates the need for manual entry of card details during online shopping. This globally available solution enhances user experience by integrating with existing services such as Visa Secure and Visa Payment Passkey. Consequently, it not only improves transaction approval rates but also provides robust security measures, allowing consumers to engage in e-commerce with confidence.

Additionally, merchants who register card information will enable customers to use both registered cards and Click to Pay, expanding the payment options available. This dual functionality aims to streamline the checkout process and significantly reduce cart abandonment rates, which is a common challenge associated with manual data entry during online purchases.

Earlier implementations of Click to Pay, such as at Just Eat Takeaway.com, have demonstrated impressive results, including a 50% reduction in fraudulent transactions and an 8% improvement in authorization rates. Furthermore, customers experienced a 75% reduction in time taken for payments, indicating a substantial improvement in the overall payment experience. As e-commerce continues to thrive, with consumer market growth in Japan expected to reach ¥24.8 trillion in 2023, Click to Pay’s introduction is anticipated to further enhance the customer experience and reduce cart abandonment rates exacerbated by cumbersome manual input processes.

According to reports from Japan's Ministry of Economy, Trade, and Industry, the e-commerce market’s expansion signifies the critical nature of improving user experiences in transactions. Visa's Click to Pay will simplify the payment process, allowing users to bypass entering card numbers, expiration dates, and other personal information, leading to a smoother shopping experience.

It is important to note that all Visa cards issued domestically will generally be eligible for the Click to Pay functionality. However, users must register beforehand. Various card issuers, listed in alphabetical order, will begin to enable registration and usage once Click to Pay is announced: Aozora Bank, Aplus, Aeon Financial Service, NTT Docomo, Epos Card, Kansai Mirai Bank, Kanmu, Saitama Resona Bank, GMO Aozora Net Bank, JACCS, Pocket Card, Hokkoku Bank, Mitsui Sumitomo Card, MUFG NICOS, Minato Bank, Life Card, Resona Bank, and Ryukyu Bank. Those with cards from other issuers can register through Visa's website, with a portal site currently under development.

Visa is anticipated to collaborate with various partners to deliver Click to Pay to their merchant members. These partners include Adyen Japan, SB Payment Service, NTT Finance, GMO Payment Gateway, and Worldpay. Each partner is expected to set their own timelines and requirements for launching Click to Pay to specific merchants.

Visa's CEO, Chetan Kithoor, expressed his enthusiasm about this development, stating, "We are thrilled to announce the plan for Click to Pay in Japan. This initiative is a significant step toward building the most trusted and customer-centric payment ecosystem. By providing global-standard security and a seamless user experience in online shopping, we eliminate the need for customers to register card information for each merchant. With one-time registration, we offer safer and smoother transactions, enhancing convenience in online shopping. Together with our partners, we aim to transform everyday payment behaviors, allowing consumers to enjoy a more comfortable checkout experience while businesses benefit from improved transaction completion rates, increased revenue, reduced fraud, and heightened customer trust. Visa is dedicated to paving this transformation, setting new standards in Japan's payment environment."

Adam Brownstein, the Country Manager for Adyen in Japan, emphasized their pride in partnering with Visa to introduce Click to Pay, aligning with Adyen's goal of simplifying payment processes and supporting global commerce. He highlighted that the solution optimally enhances user experience while reducing cart abandonment rates.

Likewise, Toshio Hirata, Executive Director and CSO at SB Payment Service, articulated that Click to Pay achieves a blend of safety and convenience, ultimately benefiting both consumers and merchants.

Meanwhile, Teiji Ochi, Head of Credit Card Business at NTT Finance, noted the potential of Click to Pay in improving recurring payment experiences, aimed at enhancing ongoing customer engagement. Tatsuya Koide, Senior Executive Officer at GMO Payment Gateway, proudly shared that their collaboration with Visa serves to advance cashless transactions through secure payment solutions.

Phil Pomford, General Manager for APAC at Worldpay, viewed Click to Pay as a transformative mechanism in online payment processes that enhances conversion rates for merchants and offers seamless payment experiences for cardholders.

Visa remains committed to providing secure, seamless, and highly convenient payment experiences alongside its partners. The launch of Click to Pay is poised to redefine the landscape of online shopping in Japan, making it more efficient and secure for consumers and merchants alike.