Two of the world’s top payment firms may soon join forces to lure online shoppers away from other popular payment methods.
According to The Wall Street Journal, the payment giants want to create a new online option that would succeed the current Visa Checkout and Mastercard Masterpass options.
Announced at a payment-industry conference TRANSACT in Las Vegas yesterday, the move would be at odds with Visa and Mastercard’s well-known rivalry – signaling the increased difficulties in the highly-competitive digital payments space.
A spokesman for American Express said the company also supports exploring a similar move to what Visa and Mastercard are discussing.
TS Anil, Head of Payment Processing and Solutions at Visa provided insight into the monumental collaboration: “the clutter that exists of multiple buttons, it doesn’t feel like it serves anybody”, he told WSJ.
Mastercard’s executive vice president of digital solutions Jorn Lambert agreed: “There’s no space to have multiple buttons”. Moving to a shared pay button will be an “evolution” of Masterpass.
According to a 2018 Bernstein Research survey, about 64% of consumers used PayPal to make online or mobile payments at least once in the past year, compared to 22% for Visa Checkout and 8% for Masterpass.
Payment options have become a confusing minefield for online shoppers – many don’t know the difference or benefits of each and too many can lead to a negative customer experience. Therefore, the more consolidation in this space, the better for retailers, as it means less integrations and less confusion for customers.