American Express and Knot simplify payment card data entry

Payment giant American Express is building on a new partnership with technology company Knot to facilitate online payments. Their joint work has resulted in the launch of a new feature that makes it easier to add payment information to registered cards, even when they are renewed.

FACTS

• The new project currently being run by American Express and its partner Knot, an Amex Ventures portfolio company presenting itself as a specialist in financial technologies and loyalty programs, is currently being deployed in a pilot phase.
• The two partners have pooled two technologies of their own:
• CardSwitcher™ from Knot, which enables customers to easily change payment methods at different merchants without having to enter their card,
• an exclusive technology from American Express, enabling its customers to share their payment data securely with their authorization.
• Their joint work has resulted in the launch of a new pilot feature (open to only a few Amex users at present) designed to simplify the addition of payment information at selected merchants (Bloomingdale's, Hilton and Macy's, for example).
• Thanks to Knot, Amex cardholders will be able to :
• enter their log-in details on the merchant websites concerned by the offer directly with Amex, in their card management area,
• instantly update their registered card information (Amex cardholders who have already purchased items from one of the selected merchants in the past, but who have not registered their card for future transactions, can now do so easily when prompted),
• access their reward points more easily, use them directly for purchases and have an improved overview of their benefits.

CHALLENGES

• Offering an alternative to Click to Pay: The partnership between Amex and Knot is not limited to a Click to Pay solution, although it does have some similarities. Click to Pay is an online payment standard that enables users to pay more easily using pre-registered payment information, without having to manually enter their credit card details for each purchase. Amex and Knot are planning a similar service model, also capable of avoiding the need to enter new card details when the card is renewed.
• An added touch of loyalty: Amex and Knot's new pilot solution aims to improve the online shopping experience by simplifying the payment process. But where Click to Pay focuses on securing transactions, Amex and Knot set themselves apart by adding a loyalty-related dimension to their offering.
• Impose your payment method: With its new service, Amex makes its card a transparent means of payment on affiliated sites. It is now the default payment method.

MARKET PERSPECTIVE

• The issue of simplifying online payments is currently at the heart of the work of all payment players, and schemes in particular. The major challenge is simple: to avoid a complete disruption of the card while ensuring their positioning on the new solutions on offer.
• And the solution that is currently attracting a great deal of attention is Click To Pay, which eliminates the need for consumers to manually enter their card details for every online purchase. The French market is particularly concerned by the positioning of the giants Visa and MasterCard in this area.
• While American Express is currently limiting its Knot initiative to the US market, it is adding a value-added loyalty dimension in a bid to stand out from the crowd.