Payment Link
What is a payment link?
A payment link is a unique URL generated by a payment service provider that directs the customer to a secure checkout page. It allows businesses to accept card payments, digital wallets or bank transfers without needing an online store, API integration or technical development.
For merchants, a payment link removes the barrier to entering digital payments. A business without a website generates the link, sends it via WhatsApp, email or social media, and gets paid in seconds. For customers, it is a frictionless pay‑by‑link experience with no registration required.
How a payment link works
The operational flow of paying by link follows five steps:
- Generation. The merchant accesses their provider’s dashboard, enters amount, description and reference. The system creates a unique payment URL.
- Sending. The link is shared via SMS, email, WhatsApp, social media or embedded in a digital invoice.
- Checkout. The customer opens a secure, encrypted page, selects a payment method and enters their details.
- Authentication. The transaction is sent to the acquirer and issuer. If it exceeds exemption thresholds, strong customer authentication (SCA) is triggered through 3D Secure 2.
- Confirmation. Both merchant and customer receive the payment result instantly.
It is important to distinguish between a static link (open amount, reusable) and a dynamic link (unique amount and reference per transaction). Dynamic links improve reconciliation and enable more precise fraud control.
According to the Baymard Institute, 17% of online shoppers abandon their cart because the checkout is too long. Payment links directly address this drop‑off point by reducing the process to a single click.
Regulatory impact and applicable security
Every pay‑by‑link transaction is considered a remote operation under Article 3 of Royal Decree‑Law 19/2018, which transposes PSD2. This implies:
- Mandatory SCA. Article 97 of PSD2 requires strong customer authentication for remote payments. The checkout must integrate 3D Secure 2 so the issuer can authenticate the cardholder with two factors. Low‑risk (TRA) or low‑value exemptions may apply when justified.
- PCI DSS v4.0. The page where the customer enters card data must comply with the 12 core requirements of the standard: cardholder data encryption, access restriction and continuous monitoring. Merchants must ensure their provider maintains valid certification.
- Impersonation risk. A link can be manipulated through phishing. Using HTTPS, a verifiable domain and controls such as velocity checks, blocklists and fraud scoring is essential.
Operational advantages and disadvantages
| Advantages | Disadvantages |
|---|---|
| Remote payments without a website or technical integration | Limited brand customization |
| Reduced cart abandonment | No cart: one transaction per link |
| Multichannel: SMS, email, social media, invoicing | More complex refund management |
| Regulatory compliance delegated to the provider | Potentially higher fees |
| Ideal for social selling and invoice payments | Possible distrust if the customer does not recognize the URL |
A payment link does not replace a virtual POS for high‑volume businesses. Its value lies in agility for independent professionals, social‑media sales and one‑off payments where activation speed matters more than checkout customization.
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