[ID payment Implementation Guide] What is ID payment? Thorough comparison of major services and benefits of introducing them on e-commerce sites

ID payment is a PayPay, Amazon Pay, Rakuten Pay, etc.Account information registered with external servicesA general term for payment methods of payment using (name, address, credit card information, etc.). Users only need to log in with their ID and password to complete the payment andNo need to enter new informationTherefore, on the e-commerce sitePrevent cart abandonment and improve purchase completion ratesIt is attracting attention as a powerful means of making it work.

In today's era where payment method is becoming more diverse, it is essential to create a highly convenient cashless environment in order to be chosen by customers.

In this article, we will discuss the basic mechanism of "ID payment", the comparison of major services, the specific benefits and precautions that can be obtained from implementation, and the safe and efficient batch implementationof multiple ID payment payment processing company expert GMO Payment Gateway, Inc. (hereinafter referred to as GMO-PG) will systematically explain how to do it. Please refer to it to take a concrete step towards considering its introduction.

What is ID payment? How it works and how it differs from other payment

What is identity payment and how does it work?

Identity payment is a mechanism for payment using an account from an external service that a user has already registered. Also known as "account payment".

• User benefit: No need to enter a new credit card number or shipping address, so payment is just a few clicks (or touches).
• Benefits for operators: Since the e-commerce site does not retain users' card information, the risk of information leakage can be reduced and high security can be guaranteed.

Typical ID payment Types

ID payment can be broadly classified into the following three categories depending on the usage scenario and technology.

1. Online payment Type:
   Examples: Amazon Pay, Rakuten Pay, PayPay (online)
   Use it on the purchase screen of the e-commerce site and complete the payment by logging in to your account.
   
   
2. QR/Barcode Type payment:
   Examples: PayPay, Rakuten Pay, Merpay
   Use it at the cash register at a physical store and payment it by presenting the QR code or barcode of the app.
   
   
3. Contactless IC Type payment:
   Examples: Apple Pay, Google Pay, iD, QUICPay
   Hold your phone over your payment device to payment. Credit card information is tokenized and used internally.

Differences between ID payment and payment, which are easy to confuse

When considering ID payment, it's important to have a clear understanding of the differences between payment method, which have similar names and usage.

Typical ID payment Service Features and Comparison

Each major identity payment service has its own economic zone, allowing for a different approach to different user segments.

What payment pros look for

In the case of e-commerce sites,Amazon Pay and Rakuten Pay already have huge customer information, so they can be expected to be effective in acquiring new customers and preventing cart abandonment. In the case of physical stores, PayPay and Rakuten Pay have strong point redemption and campaign measures, which contribute to improving the frequency of visits and the unit price of purchases.

Specific benefits of implementing ID payment

By implementing ID payment, businesses (e-commerce sites and physical stores) can gain the following three main benefits:

Simplified purchase procedure dramatically prevents cart abandonment

The biggest advantage of ID payment is that it reduces the hassle of entering information at the time of purchase to almost zero.

• No new membership required: Address and name will be automatically reflected by simply logging in to your account.
• No need to enter a card number: The card information registered with the external service is used, providing peace of mind in terms of security.

Users can complete payment in just a few steps, which can lead to increased sales by preventing abandonment (cart drops) in the middle of typing.

Improving customer attraction through the use of economic zones

Each ID payment service has built a large membership base (economic zone).

• Sending customers through points: For reasons such as "if Rakuten points can be used", users will be motivated to choose e-commerce sites and stores based on payment method.
• Engage new customers: Reach previously unavailable customer segments, such as younger demographics without credit cards or those familiar with cashless payment.

It's not just an payment method addition, it serves as a huge promotional channel.

Enhanced security and reduced operational risk

ID payment is a mechanism that does not handle sensitive card information on the e-commerce site side (de-retention), which greatly reduces the risk of information leakage.

• Since payment data is managed by each ID payment service, e-commerce site operators can reduce the burden of security and focus on their core business.
• This is also a great advantage in responding to the security standards required by the Installment Sales Act and the Credit Card Transaction Security Measures Council's "Credit Transaction Security Measures Guidelines".

Disadvantages and precautions of ID payment

While there are many benefits, when implementing and operating multiple identity payment, it is important to pay special attention to the following two points:

contract ・Increased operational effort and cost

If each identity payment contract with the service separately and connect to the system separately, the deployment and operation load is extremely high.

• contract ・Examination time: The number of payment services you want to introduce requires application, review, and system development.
• Increased Administrative Complexity: payment Commission rates, payout cycles, and sales reporting formats vary from service to service, increasing the burden on accounting and administration.
• Cost Variability: Using a lot of services with high fees can strain profits in the long run.

Beware of differences and confusion in service content

One thing to be especially careful about is confusing services with similar names but completely different mechanics, such as "ID payment" and "iD payment" mentioned above.

• Lack of accurate knowledge: If the implementation personnel misunderstand the specifications, it will lead to operational problems and customer complaints.
• Differences in Security Requirements: Identity payment and Credit card payment have different security treatments. Specialized knowledge is essential for non-professional operators of payment to operate alone.

How to deploy identity payment safely and efficiently

In order to eliminate the aforementioned disadvantages (contract, operational complexity, and management complexity) and make the most of identity payment, it is best to use a payment processing company vendor to implement it in bulk.

payment processing company Benefits of using a vendor

The biggest advantage of using a payment processing company provider is that it allows you to unify your contract, system connections, and payment management.

The ability to provide a variety of payment method with high customer satisfaction at once while minimizing the number of man-hours required to implement is the biggest advantage of using a payment processing company provider.

If you are implementing "ID payment" PG Multi-Payment Service

For businesses looking to implement ID payment securely and efficiently, the PG multipayment service offered by GMO-PG​is the best choice.

Why PG Multi-Payment Service?

1. Extensive lineup of industry-leading payment:

   In addition to major ID payment (PayPay, Rakuten Pay, Amazon Pay, Merpay, etc.), you can deploy about 30 types of payment method at once, including credit cards, CVS Payment, and carrier payment. This ensures that payment is met with diversification needs and prevents payment opportunities from being lost.
   
   

2. Industry-Leading Actual and High Standards of Security:

   As a listed company on the TSE Prime Market, GMO-PG provides payment systems to numerous e-commerce sites and large-scale operators, and is highly regarded for its professionalism and reliability.
   It complies with PCI DSS, an international security standard, to keep your card information safe.
   
   

3. Centralized management of labor-intensive operations:
   By centrally managing the contract, review, settlement, and operation of multiple identity payment, you can minimize the management burden after introduction and focus on your original business.

Conclusion

ID payment is an essential payment method for modern e-commerce sites that provides users with a convenient and speedy payment experience by leveraging account information, preventing cart dropouts and increasing sales for e-commerce businesses.

On the other hand, there are disadvantages to introducing and operating multiple services individually, such as contract, management time, and security risks.

To address these challenges and reap the full benefits of ID payment, bulk implementation of GMO-PG with PG Multi-Payment Service is the most efficient and secure option.

If you need specific information about the best combination of identity payment for your company, as well as the cost and duration of implementation, please feel free to contact us.

GMO-PG's payment consultants will propose the best solution for your business scale and business type.