As the digital economy expands, businesses and consumers are embracing faster, more convenient ways to complete transactions. One method gaining significant traction is link payment — a simple yet powerful tool that enables payments through secure, shareable links. In this glossary entry, we’ll break down what link payment is, how it works, its benefits, and why it’s reshaping the future of digital transactions.
Link payment refers to a digital transaction method where a merchant or service provider sends a unique, secure URL to a customer, allowing them to pay online. This approach eliminates the need for complex checkout processes or physical payment terminals, making it ideal for remote or flexible billing scenarios.
A digital payment link is a URL generated by a payment system that directs the user to a secure page where they can complete a transaction. These links can be shared through various channels, including email, SMS, messaging apps, or even social media.
An insurance company sends a payment link via WhatsApp to a customer who requested the ability to make a payment via chat. The customer clicks the link in the chat, enters payment details on a secure page, and completes the transaction without the need for an invoice or website login.
Pay by Link is a specific implementation of digital payment links where the customer initiates payment by clicking on a link provided by the merchant. It’s commonly used in retail, hospitality, and service-based industries for its ease of use and quick deployment.
A hotel sends a guest a Pay by Link email for an advance booking deposit. The guest clicks the link, confirms the reservation, and pays securely through a hosted payment page — all within minutes and without calling or logging into a booking portal.
Security is central to the success of digital payment links. Reputable providers encrypt data, use secure HTTPS protocols, and often integrate tokenization to protect cardholder information. Additional measures like 3D Secure authentication, link expiration, and usage limits help prevent fraud and unauthorized access.
Compliance with PCI DSS (Payment Card Industry Data Security Standard) is crucial, and businesses should ensure that any link payment solution they use adheres to the highest standards in data protection and regulatory compliance.
The adoption of link payments is expected to rise, driven by consumer demand for frictionless, mobile-friendly payment methods. Future trends include:
As businesses prioritize customer convenience and digital agility, link payment will continue to evolve — offering a smart, secure, and scalable solution in the digital payments landscape.