One Click Checkout: The Fastest Path to Higher Conversion Rates

One Click Checkout  is a payment feature that allows customers to complete a transaction with just a single click through a payment gateway, without re-entering card or address details. Once their information is securely saved during the first purchase, the payment gateway uses tokenization to process future transactions quickly and safely, making online checkouts faster and more convenient for both shoppers and businesses. 

For example: PhonePe PG Device Tokenization enables merchants to offer secure, frictionless  payments by replacing sensitive card details with unique, device-bound tokens that are stored securely on the customer’s device. Customers can save their cards on the PhonePe app, and with their one-time consent, these saved instruments appear on the merchant’s checkout page. 

For future purchases, transactions are processed instantly using the token, without re-entering card details, making one click checkout possible with OTP.  This approach ensures RBI compliance, protects sensitive card data, speeds up checkout, and reduces cart abandonment. 

How does One Click Checkout Work?

1. First Purchase Setup

When a customer makes their first payment, they enter their card details, billing address, and shipping information on the checkout page. The site may show an option like “Save card for faster checkout next time.”

Once the customer places the order, this data is securely transmitted to the payment gateway over an encrypted connection. The merchant’s server never stores raw card details to stay PCI DSS-compliant. The payment gateway then encrypts and processes the payment request, generating a unique token linked to that customer’s card and device. 

2. Tokenization

Nothing changes visually for the user; they still enter their card details and complete the payment as usual. Behind the scenes, the payment gateway replaces the actual card number with a unique, device-bound token that securely represents the customer’s card.

The real card data is stored safely with the card network or issuing bank, not on the merchant’s systems. The merchant stores only the token and a masked version of the card (like “****1234”) for reference. This ensures compliance with RBI’s tokenization framework and PCI-DSS security standards while allowing future payments without re-entering card details.

3. Customer Consent

Before a card or token is stored for future use, customers must give one-time consent usually through a checkbox or a quick confirmation prompt like ‘Save this card for future payments.’

Once consent is captured, the merchant associates the token with the customer’s profile (usually via their email, phone, or account ID) in their system. This mapping ensures that when the same customer returns, their saved tokenized card can be fetched from the PG securely.

4. Instant Repeat Payments

During the next checkout, the customer sees their saved cards or payment options pre-filled. They simply click or tap ‘Pay Now’ without re-entering any details. When they do, the merchant’s backend sends the saved token (not the card details) to the payment gateway for processing.

The payment gateway forwards the token to the card network, which maps it to the actual card number in its secure vault and routes the request to the issuing bank for authorization. The entire process happens within seconds, enabling a true one click checkout experience.

5. Secure Processing

From the customer’s view, the payment feels instant; they see an order confirmation almost immediately. The payment gateway handles transaction authorization with the bank, using the token instead of sensitive card data. The merchant receives a confirmation via API (payment success/failure), and the order status is updated automatically on their platform (like Shopify).

Throughout this process, sensitive card details never touch the merchant’s servers. All sensitive information is tokenized and securely handled by the payment network and gateway, ensuring compliance, security, and customer trust.

For example Passkeys take one click checkout a step further by removing the need for passwords or OTPs altogether. Instead, they use secure device-based authentication methods like fingerprint, Face ID, or PIN to verify a user’s identity. For online payments, this means customers can complete transactions with just a biometric confirmation, no need to remember credentials or enter card details manually.

Visa and Mastercard are introducing passkey support to simplify authentication for cardholders. However, it’s ultimately up to the issuing banks to enable this functionality for their customers. Once activated, payment gateways like PhonePe PG can integrate passkey-based authentication into their checkout flows, allowing merchants to offer a faster and more secure payment experience without relying on traditional passwords.

By combining bank-enabled passkeys with tokenized payments, businesses can provide a truly seamless one click checkout that enhances security, reduces drop-offs, and builds customer trust all while meeting the highest standards of digital payment innovation.

How to Set Up One Click Checkout?

1. Choose a Payment Gateway That Supports Tokenization

Start by selecting a payment gateway that offers tokenization and one click payment features such as PhonePe PG. Tokenization ensures customer card details are replaced with secure, encrypted tokens for safe repeat transactions. Check that your chosen PG complies with RBI’s card tokenization guidelines and supports device-bound tokens for added security.

2. Integrate the Payment Gateway With Your Store

If you’re using an eCommerce platform like Shopify, go to your admin panel and navigate to Settings >Payments. Select the supported payment gateway (for example, PhonePe Payment Gateway) and enter your merchant credentials like Merchant ID and API Key.

For custom websites, developers can integrate the PG using API or SDK, provided by the gateway, to securely handle payments and enable one click checkout options.

3. Enable Save-Card Functionality With Customer Consent

After integration, enable the “Save card for faster checkout” feature during checkout. Customers must give one-time consent to securely save their card information for future use. The payment gateway then issues a tokenized version of the card that’s linked to their device or account.

4. Configure Your Checkout Flow

Customize your checkout page to display saved payment methods for returning customers. When they come back, their saved tokenized cards should appear automatically, allowing them to complete the purchase with a single click or tap no re-entry of card or address details required.

5. Test and Go Live

Before going live, run multiple test transactions in the sandbox environment to ensure that tokenized payments, saved cards, and one click checkout work smoothly across browsers and devices. Once verified, switch to production mode and start accepting real payments.

Conclusion

One Click Checkout isn’t just about speed, it’s about creating a seamless, secure, and trusted payment experience that keeps customers coming back. By combining RBI-compliant tokenization, device-bound storage, and emerging technologies like passkeys, businesses can reduce checkout friction, minimize drop-offs, and boost repeat purchases. 

For merchants, choosing a reliable payment gateway such as PhonePe PG simplifies this entire setup offering built-in tokenization, one click repeat payments, and a future-ready framework for passkey authentication. With PhonePe Payment Gateway, merchants can deliver a checkout experience that’s not only faster and safer but also aligned with the next generation of digital payment innovation in India.