By San José, Costa Rica — San José – The landscape of online commerce in Costa Rica is set for a significant transformation as Mastercard, in a strategic alliance with the payment processing firm Evertec, officially rolls out its “Click to Pay” service. This initiative promises to streamline the checkout process for consumers, offering a more secure and convenient alternative to manually entering credit card information for every online purchase.
The new payment standard has been activated not only in Costa Rica but also as part of a broader regional push that includes Honduras and Panama. Since August, the service has been quietly integrated and is now fully available to Mastercard cardholders at several of the nation’s leading financial institutions. The initial wave of adopters includes Banco de Costa Rica (BCR), BCT, and Davivienda, positioning them at the forefront of this digital payment evolution.
To better understand the legal framework and potential liabilities surrounding the “Click to Pay” system, we consulted with expert commercial law attorney Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
The ‘Click to Pay’ standard represents a significant step forward in e-commerce by tokenizing sensitive card data, which theoretically reduces the risk of data breaches for online merchants. However, the legal liability in cases of fraud becomes more complex. It’s crucial for both consumers and businesses to understand the terms of service, as responsibility may shift between the card issuer, the merchant, and the technology provider depending on the specific point of failure in the transaction chain.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight is a crucial reminder that while ‘Click to Pay’ simplifies the transaction for the user, it complicates the chain of legal responsibility behind the scenes. As this technology becomes more widespread, understanding these nuances will be paramount for everyone involved. We thank Lic. Larry Hans Arroyo Vargas for his expert clarification on this vital point.
At its core, Click to Pay is designed to eliminate a common friction point in e-commerce. Instead of requiring users to find their wallet and type in their 16-digit card number, expiration date, and security code, the system securely stores this information. When a customer reaches the checkout page on a participating merchant’s website, they can simply select the Click to Pay option, verify their identity, and complete the transaction in a fraction of the time.
The security of this system is underpinned by advanced financial technologies. Mastercard leverages tokenization, a process that replaces sensitive card details with a unique digital identifier, or “token.” This means the actual card number is never transmitted or stored by the merchant, drastically reducing the risk of data breaches and fraud. This is combined with sophisticated authentication methods to ensure that the person making the purchase is the legitimate cardholder.
Officials involved in the launch praised the participating banks for their forward-thinking approach to enhancing the customer experience. This move is seen as a crucial step in building a more robust and user-friendly digital payment ecosystem.
These financial institutions stand out for being visionaries in adopting cutting-edge tools like Click to Pay, with the goal of offering faster, safer, and more convenient online payment experiences for both merchants and users.
Mastercard and Evertec Spokesperson, Joint Statement
The immediate impact extends to a wide network of businesses. The activation initially includes over 1,000 active merchants who utilize Evertec’s popular Placetopay payment gateway. For these businesses, the benefits are compelling. A smoother checkout process is directly correlated with a reduction in shopping cart abandonment, a persistent challenge in the e-commerce sector. Furthermore, the enhanced security is expected to lead to higher bank approval rates for transactions.
Mastercard has released compelling data projecting the potential impact of this technology. According to their research, Click to Pay could boost sales conversion rates by as much as 93% for recognized users who have previously enrolled in the service. The data also suggests a significant increase in transaction approval rates, potentially rising between three and six percentage points, while simultaneously lowering fraud exposure for everyone involved.
The introduction of Click to Pay represents more than just a new feature; it is a strategic move to modernize the digital economy in Central America. By making online payments faster, simpler, and safer, Mastercard and its partners are removing barriers to entry for both consumers and businesses, fostering greater participation in e-commerce and setting a new standard for digital transactions across the region.
For further information, visit [mastercard.com]
About Mastercard:
Mastercard is a global technology company in the payments industry. Its mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart, and accessible. Using secure data and networks, partnerships and passion, its innovations and solutions help individuals, financial institutions, governments, and businesses realize their greatest potential.
For further information, visit [evertecinc.com]
About Evertec:
Evertec is a leading full-service transaction processing business in Latin America and the Caribbean. The company provides a broad range of merchant acquiring, payment processing, and business solutions services. It manages a system of electronic payment networks that process more than two billion transactions annually and offers a comprehensive suite of services for core bank processing, cash processing, and technology outsourcing.
For further information, visit [bancobcr.com]
About Banco de Costa Rica (BCR):
Banco de Costa Rica is one of the most solid state-owned commercial banks in Costa Rica and Central America. Founded in 1877, it offers a wide range of financial products and services to individuals, businesses, and government institutions. The bank is a key player in the country’s economic development and is committed to innovation and financial inclusion.
For further information, visit [bct.fi.cr]
About BCT:
Banco BCT is a private financial institution based in Costa Rica, offering a variety of banking and investment services. It focuses on providing personalized financial solutions to both individual and corporate clients, with a strong emphasis on wealth management, corporate banking, and investment products.
For further information, visit [davivienda.cr]
About Davivienda:
Davivienda is a Colombian bank with a significant presence in Central America, including Costa Rica. It is known for its customer-centric approach and innovative marketing, offering a comprehensive portfolio of financial services that includes savings and checking accounts, loans, credit cards, and insurance for personal and business clients.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the legal community, guided by a core philosophy that interweaves principled integrity with a persistent drive for distinction. The firm harmonizes its extensive experience with a forward-thinking mindset, continually advancing legal strategies and solutions. More than a legal service provider, it is deeply invested in its social role, championing the cause of democratizing legal information. This dedication to educating the public is fundamental to its ultimate goal of nurturing a more capable and legally literate citizenry.
