5 min read

2 Frictionless payment methods leading the way

Published on 4 Mar 2024

Contributors

With 15+ years of experience in strategic marketing and communications roles, for Nets I focus on presenting e-commerce market insights in a way that is easy to understand and practical.

An easy online payment experience

We know that merchants who operate an ecommerce business strive to make the online customer experience a pleasant one. Their goal is to make the transition from online browsing to online payment quick— and importantly— hassle-free, for the customer. To ensure the shopping cart is not abandoned, the checkout process must be simple, intuitive, and convenient.  

And here is where “frictionless payments” come in. Frictionless payments mean that online and offline checkout processes are designed to ensure barriers to buying have been minimized. It is a broad term that includes mobile and digital wallets, in-app payments, one-click payments, auto-renewing subscriptions, contactless card payments, and other digital payment options

The international marketing statistics portal, Statista, estimates frictionless payment technology will grow to $8 trillion by 2024. Their popularity, as described in Monei’s blog, is due to their: 

  • Providing a faster checkout (with fewer steps needed to complete checkout) 
  • Minimizing or eliminating consumer waiting time 
  • Reducing cardholders’ cognitive strain by eliminating the need for PINs or passwords 
  • Feeling like a natural part of the customer experience, instead of like an extra step 

A deeper look into two of the top methods leading this customer-centric revolution is a must.

For more information on this and more payment trends, we have a new series of reports- Nordic Payment Report 2023- available for:

Sweden

Norway

Denmark

Ecommerce payment chart

Digital Wallets

Digital wallets are financial applications that allow consumers to store funds, make transactions, and track payment histories on devices like phones and tablets. Apple Pay, which Nets offers to webshops on its payment platform, is an example of a more well-known digital wallet— as is Google Pay. Both services allow consumers to access financial products through physical devices and to make purchases.  

Besides convenience and even rewards (think loyalty programs), they have the added security feature of not having to carry around credit cards, as the account information is stored in the cloud. This is possible through something called tokenization. Account information is heavily encoded — so much so that if a retailer gets hacked, the credit or debit card number won’t be compromised. 

According to Statista, in 2022, mobile wallets accounted for roughly half of global e-commerce payment transactions. This makes the digital wallet by far the most popular online payment method worldwide with a share set to increase to over 54% in 2026. Although digital and mobile wallets were globally the leading choice when buying online, some regions used this payment method more than others. It is the most popular method in the Asia Pacific Region, accounting for approximately 60% of e-commerce transactions in 2020, compared to 20% of online transactions in Latin America. 

 

Embedded Payments

Embedded payments, also known as in-app payments, enable seamless payments within apps and platforms by integrating payment infrastructure. Taking out a credit card and entering its number is a friction point that can cause consumers to abandon a digital purchase should their card not be handy. Embedded payments make this process much easier, as no card is required. 

Embedded payments are a way of connecting and saving a payment method for later use at the click of a button. The Starbucks app, for example, saves credit or debit card information for 1-click payments while customers earn points for using the app. Another, perhaps more widely used example, is that ofUber for ordering transportation. Consumers order and pay for a ride without leaving the Uber app. The act of paying becomes invisible to the customer. (They enter in their payment information once when they download the app and register for the service.) 

As smartphones continue to rule the digital world*, the popularity of in-app purchases has changed how we use mobile apps and make transactions—transforming the user experience. Benefits are: 

  • Convenience and Frictionless Transactions: Without leaving the app or repeatedly entering payment information, users can make purchases, subscribe to services, or access premium features.  
  • Improved App Engagement and Retention: Users are more likely to stick around and keep using an app if it offers simple purchase processes, which raises the lifetime value of those users. 
  • Personalization and customization: Apps can offer customized recommendations, offer individualized discounts or loyalty benefits, and make repeat transactions easier by securely storing user payment information.  

For more information on in-app payments in the Nordics, refer to our in-depth article by our Head of Product, Anders Knudsen here

 

*According to Statista, in 2023, the current number of smartphone users in the world today is 6.92 billion, meaning 86.11% of the world’s population owns a smartphone. 

 

Contact sales

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Our turnover increased by 21.5%. Additionally, we have 28% more transactions – and 49% more orders from mobile.

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Jon-Inge Heldal

CEO Parkett.no

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Our conversion rate increased from three to four percent, a very big change that resulted in an increase in completed purchases by 30%.

Customer story icon
Per Erik Raune – Norsk Bildelsenter

Per Erik Kirkaune

Marketing Manager at Norsk Bildelsenter

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Previous payment solutions have given us lots of manual work. We had to log into several portals to manage transactions, and there was much fraud. With Nets Easy none of that is an issue anymore.

Cecilie Ciekals

Performance Marketing
Manager at Lampehuset

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FAQ

We get it, you have questions. We have answers. Check out our most frequently asked questions and if you can’t find the answer there, please contact support. Our local offices are open 24/7, they’ll be able to help you out right away.

Is there a live demo I can test?

Yes. There is a demo store at shop.easy.nets.eu where you can try Easy Checkout and change numerous settings to see how to customize the checkout flow. Use any of the sample credit cards to test card processing, or use a sample invoice address to test invoice processing. You can also create a free test account to access Easy Portal.

How do I update my company information?

If you want to update the address or name, you can contact our Support team. If the changes concern your company registration number, please contact our sales department so that we can help you out with a new application. Contact information can be found at the top of the support page.

Where can I find my merchant number (merchant ID)?

Your merchant number (also known as merchant ID) can be found in Easy Portal and is displayed at the top of the page. A merchant number can only contain digits.

Which payment methods does Nets Easy support?

We offer local payment methods in different countries. We continuously work to add new payment methods. Read more about the payment methods supported in your regions.

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