Payment links explained

Payment links - sometimes called pay by link - are a quick and convenient way for merchants to get paid by their customers. 

Best of all, they require no technical know-how to set up, and they're extremely flexible - you can use them for both online and in-person payments, as well as to take payments via social media, email, or SMS. 

By accepting payments across multiple channels, payment links can boost your conversions, secure customer loyalty, and grow your revenue. 

In this article, we explain what payment links are, how they work, how to set them up, and their key benefits for merchants. 

What is a payment link?

A payment link is a URL, QR code, or payment button you can send to your customer. Clicking or scanning it will take them to a secure checkout page, where – after inputting their payment details – they can make a purchase.

You can set up a unique payment link for a single intended recipient for whichever service or product they’re interested in – then share this with that customer across whichever sales channel you like. In this way, payment links function similarly to an invoice – albeit one your customer can pay without distractions or deviating from the page on the spot.

Payment links are provided by a payment link service provider, such as Checkout.com – so you’ll need to select one before accepting payments this way.

How do payment links work?

Payment links are end-to-end solutions. That means they handle card tokenization – the process of safeguarding the sensitive cardholder details the payment process requires – as well as the payment request and authentication.

What does that mean for you as a merchant?

That, basically, the heavy lifting is done for you. Once you’ve created a payment link from your payment service provider, it’s ready to share with your customer. All they have to do is enter their payment details.

Benefits to using payment links for merchants

Recover cart abandonment

Payment links serve as a powerful tool for merchants aiming to recover abandoned carts. Unlike traditional checkout processes, payment links are designed for transactions that occur outside the typical website shopping experience. This unique feature allows merchants to directly address cart abandonment issues by reaching out to disengaged customers before completing their purchase. It also increases or recovers otherwise lost revenue.

Convenience

Payment Links offer a convenient way for merchants to easily accept payments without the need for a dedicated ecommerce website. Merchants can accept payments from a global network of payment methods in a secure, compliant and user-friendly manner without writing a single line of code. They can simply generate a payment link within the Checkout.com Dashboard and send it to customers across various channels like email, social media, WhatsApp and SMS to increase revenue opportunities.

Increase revenue

By creating purchasing points across multiple interaction channels, payment links allow you to reach a wider customer base, which provides new opportunities to generate sales.  

Added to that, customers will remember the simplicity of the buyer journey, which could give you the edge over your competition when it comes to future purchases, further boosting your revenue. 

Security

Payment link transactions employ rigorous security measures like encryption, tokenization, and strong customer authentication via 3D Secure to protect your business and customers’ data. This helps to prevent fraud and sends strong trust signals to your customers. 

Flexibility

Payment links are highly flexible and can be used to facilitate many different types of payments. You can generate them for a one-off payment or even to collect multiple payments on a fixed-term or recurring basis. You also have a variety of options for how to display your payment links. For example, they can take the form of a buy button on a, a QR code on social media, or hyperlinked email text. 

They are flexible enough to be deployed across a range of interaction channels. You can display them as buy buttons on your web pages or as clickable links in your social posts; you can incorporate them into voice commerce or wearables to create a seamless (also called contextual commerce) purchasing journey; they can be embedded into documents like invoices; or they can be used to send payment requests via email, social media or SMS message. 

Payment links are compatible with multiple payment methods. Once the customer has clicked on the link and arrived at the checkout page, they can choose to settle up using the most convenient method, be it a credit or debit card or digital wallet.

Compliance 

Whichever payment provider you use to generate payment links will be compliant with the highest standards of customer data protection and security protocols. For example, Checkout.com has 3DS2 and PCI DSS compliance built into its platform, meaning that, once integrated, you can be safe in the knowledge that you’re meeting the most up-to-date regulatory requirements. 

When to use a payment link

Payment links are ideal for accepting payments:

• While you’re still working on your website or app
• In parallel with your existing online integration as another way to reach your customers
• If the products you sell are personalized to each consumer, you may not want to build them into your website or promote them at large – so a tailored, individual link to pay is the best option.
• You don’t want to deal with the hardware of accepting in-person payments: Let’s revisit that market stall example. Payment links can fulfill a similar function if you don’t have the space or the inclination to work with a physical card reader.
• You sell through multiple channels: Maybe you do business not only in person but through social media, email newsletters, SMS, and blogs. Here, payment links can ensure each payment experience is tailored to the platform you’re providing it through.
• You have a highly segmented audience: Because payment links are highly customizable, you can create tailored, targeted payment pages that speak to the distinct goals, needs, and pain points of each demographic and audience you cater to.

Are payment links safe?

Yes, payment links are safe. Customer data is protected via encryption and tokenization, which shields it from fraudsters during transactions, and customers are fully authenticated by 3DS, which uses multiple factors - such as one-time passwords and biometric information - to verify their identity. 

How to create a payment link

Ready to create your own payment link? Here’s how.

1. Set up a payment request link with your provider

To get going, request a payment link from your payment link service provider. They’ll have all the infrastructure and functionality already set up – usually, you just need to the log on to their provider dashboard and create the payment link themselves via a self-serve interface.

Your payment service provider will generate a unique link for a one-time transaction.

2. Send the payment link to your customer

Now, it’s time actually to send the payment link to your customer. Once the payment link is set up. You can share your payment link with your customer via email, text, or social media for a more personal touch.

3. The customer enters their details

When a customer clicks on the payment link, they will be taken to a payment page where they will enter their payment details to complete the transaction.

How they pay – and which specific details they’ll need to enter – depends on how you, and your payment provider, have set up the page. It could be through card payments, by entering their credit or debit card information, or via a digital wallet such as Apple Pay or Google Pay.

Here at Checkout.com, our payment links offer a huge range of ways for your customers to pay: including Apple Pay, Google Pay, PayPal, Bancontact, EPS, iDEAL, KNET, Multibanco, Przelewy24, and Sofort.

To decide which is right for your customers, consider their needs and demographics – including their geographical location and pain points – to provide them with a payment method they know and are comfortable with.

4. Collect the payment

After the customer has entered their payment details and finalised the transaction, your payment service provider will do the rest – handling the authentication flow, processing the payment, and notifying you by a webhook.

Job done!

To read more about payment links – and create your own payment link with Checkout.com – explore our comprehensive guide to managing and customising payment links for your business.

Choosing a payment link provider

With so many payment link service providers to choose from, it’s important to make the decision that works for your business’s unique needs. So before signing on the dotted line, ask:

• Does the payment link service provider support the currency I work in?
• How customisable is the payment page? Can I customize the branding? Add a logo? Can I make different payment types i.e., recurring?
• How easy is the payment link generation process?
• What fees will each payment link transaction incur?
• Which payment methods does the payment link service provider support?
• What kind of customer support does the payment link service provider offer?

Explore payment links with Checkout.com

Here at Checkout.com, our payment links make it easy for your business to get paid and to create seamless payment experiences that meet the needs of your customers. 

Thanks to our self-serve payment links Dashboard, sending payment links couldn't be easier. Our pre-built interfaces, which are compliant with the latest PCI regulations, allow you to set up quickly and with minimal friction. After that, you have the freedom to customize your payment links to match your brand and to collect payments across any digital channel.

What’s more, our solution is highly scalable, allowing you to grow your business with ease while reducing your administrative burden. 

Speak to a member of our team to find out more about how payment links can drive conversions, boost loyalty, and scale globally.