Argos, Boots UK, House of Fraser and The Hut have signed up to a new e-wallet service that enables shoppers to pay for goods at the click of a button.
MasterCard’s MasterPass enables shoppers to create a digital wallet by uploading all their card details, including store cards and shipping and billing addresses, onto their account. Consumers can then pay through MasterPass with a mobile device or computer.
MasterCard believes that the new tool could help retailers to cut checkout abandonment rates, which cost the sector £6bn each year.
MasterCard president for the UK and Ireland Marion King said: “For retailers, MasterPass provides a faster, easier way to check out their customers, and increase sales without significantly changing the way they currently process payments.
“MasterPass can help retailers reduce checkout abandonment rates, which affected 37% of all online transactions in the first quarter of 2013.”
MasterPass is designed as another option that retailers can provide customers to pay at the checkout. Customers will see a MasterPass button that will take them to log into their account, where they can then choose which card they wish to pay with.
Retailers do not pay for the service, instead MasterCard will take a fee from the card payment provider.
Eventually the service will also be available in stores as a payment option.
The Hut has soft launched the service today, and will unveil the payment option later this year with a big marketing campaign.
The Hut Group commercial marketing director Sarah Jasper said: “It is a faster and more convenient way for shoppers to transact. Checkout abandonment is always a concern and it is something we wanted to improve upon.”
She added that it is too early to say what level of improvement in sales MasterPass will generate, but added: “There is no doubt we will get an uplift.”
Jasper said the MasterPass service will eventually lead to a linked rewards scheme for customers of The Hut. But she said details are yet to be confirmed.
The UK is seen as the leading country for online retail and UK consumers spend more than £62bn a year online.