Visa and Mastercard have revealed plans to combine their respective digital payment solutions, Visa Checkout and Masterpass into a single checkout button in order to simplify the online shopping process.

According to media sources, American Express and Discover Financial Services also intend to join the project, which is anticipated to lead to increased competition with PayPal.

Launched in 2012, Masterpass is a contactless payment option available for Mastercard members to carry out fast and secure transactions.

Visa Checkout was introduced in 2014 and offers similar quick, convenient and safe payment option.

The new solution is set to be based on the firms’ token technology, reported Bloomberg. The technology improves security through replacement of certain sensitive card details with a digital ID.

According to Mastercard and Visa, the common payment option will leverage EMVCo Secure Remote Commerce (SRC) framework.

In its blog, Mastercard said: “Similar to the single, standardised acceptance terminal on a merchant’s countertop, we believe that SRC can be implemented as one, common checkout button.

“In doing so, we believe SRC will deliver a more consistent checkout experience for consumers, reducing the multiple steps they face at different sites today and will make it much easier for merchants to implement and securely store tokens on file and improve their approval rates.”

A statement from Visa read: “Working with our clients, partners, and customers around the world we’ll simplify, standardise and bring greater security to digital payments – in a way that solves for both ‘now’ and the foreseeable future.

“We look forward to partnering with the industry to bring new experiences to markets and consumers worldwide.”