What is Pay by Link?

How Pay by Link Works

Pay by link is a payment method where the merchant sends the customer a unique URL that leads to a secure payment page. The customer clicks the link, enters their card details on the hosted page, and completes the payment. It is one of the simplest ways to collect a payment remotely without needing a physical card terminal or a full e-commerce website.

The process works like this: the merchant creates a payment request in their payment system, specifying the amount and optionally adding a description or reference. The system generates a unique link, which the merchant sends to the customer by email, SMS, WhatsApp, or any other messaging channel. The customer opens the link in their web browser, sees the payment amount and details, enters their card information on a secure page hosted by the payment provider, and submits the payment. The merchant receives instant notification of the payment, and the customer gets a confirmation.

Why Businesses Use Pay by Link

Pay by link fills a gap that other payment methods leave open. Online checkout requires a website with integrated payment processing. Card terminals require physical hardware. Phone payments require an agent to handle the call. Pay by link requires none of these -- just the ability to send a message to the customer.

Common Use Cases

• Invoice payments: Instead of waiting for a bank transfer or cheque, businesses send a payment link alongside the invoice for immediate card payment
• Service businesses: Tradespeople, consultants, and freelancers send payment links after completing work, without needing a card terminal
• Telephone orders: During a phone call, the agent sends a payment link by SMS so the customer can pay securely without reading out their card details
• Deposits and advance payments: Hotels, event venues, and rental companies collect deposits before the customer arrives
• Debt collection: Overdue payments can be chased with a simple payment link, reducing friction and increasing the likelihood of collection
• Charity donations: Fundraisers and charities share payment links via social media, email campaigns, or direct messages
• Remote sales: Any business that sells by phone, email, or messaging can close the sale instantly with a payment link

Pay by Link and Security

One of the key advantages of pay by link is that the payment page is hosted by the payment provider, not the merchant. This means the merchant never sees, handles, or stores the customer's card details. The data goes directly from the customer's browser to the payment provider's secure servers.

This has significant implications for PCI DSS compliance. Because no cardholder data passes through the merchant's systems, the merchant can typically qualify for SAQ A -- the simplest level of PCI DSS self-assessment. There are no card details to encrypt, no databases to secure, and no call recordings to protect.

For the customer, the experience is familiar and reassuring. The payment page looks and works like any online checkout, with card brand logos, SSL padlock, and standard security indicators. Modern pay by link solutions also support 3D Secure authentication, adding an extra layer of fraud protection.

Pay by Link vs Other Payment Methods

Understanding where pay by link fits alongside other payment channels helps businesses choose the right approach for each situation.

• vs Phone payments: Phone payments require an agent to be on the call and, traditionally, to handle card details. Pay by link removes the card data from the conversation entirely -- the agent sends a link during or after the call, and the customer pays in their own time.
• vs Virtual terminals: A virtual terminal requires the agent to type in the customer's card details, creating PCI DSS scope. Pay by link shifts the card entry to the customer, eliminating that scope.
• vs Online checkout: Online checkout is embedded in a website's purchase flow. Pay by link is standalone -- it works without a website and can be used for ad-hoc or one-off payments that do not fit a standard e-commerce journey.
• vs Bank transfer: Bank transfers are slow to reconcile and easy for customers to get wrong (incorrect amount, missing reference). Pay by link pre-fills the amount and reference, ensuring accuracy and enabling instant confirmation.

Pay by Link and Telephone Payments

Pay by link is becoming an increasingly popular complement to telephone payment solutions. During a phone call, instead of asking the customer to read out their card number or enter it on their keypad, the agent can send a payment link by text message while the conversation continues.

The customer opens the link on their phone, completes the payment on the secure page, and the agent sees the confirmation in their system -- all without any card data entering the phone call. This approach works well for customers who are uncomfortable sharing card details verbally, or in situations where DTMF keypad entry is not practical (noisy environments, customers unfamiliar with the process, etc.).

For contact centres, this creates a flexible payment toolkit. Agents can offer the customer their choice of payment method -- keypad entry with DTMF masking, or a payment link sent to their phone -- depending on which feels most natural for the situation.

Practical Considerations

While pay by link is simple and effective, there are a few things to think about when implementing it.

• Link expiry: Payment links should have an expiry time to prevent old links from being used unexpectedly. Most providers allow merchants to set this, typically between 24 hours and 30 days.
• Branding: The payment page should reflect your brand -- logo, colours, business name -- so the customer feels confident they are paying the right company. Unbranded or generic pages can erode trust.
• Delivery channel: Think about how your customers prefer to receive links. SMS has high open rates but limited formatting. Email allows more context and branding. WhatsApp and other messaging apps may be preferred by some customer demographics.
• Reconciliation: Ensure that each payment link is tied to a reference number in your systems so you can easily match payments to invoices, orders, or customer accounts.
• Mobile-friendliness: Most customers will open payment links on their phone, so the payment page must work flawlessly on mobile browsers.