How Payment Integrations are adapting to the end of Third-Party Cookies

What's Changing with Cookies?

The most impactful changes involve third-party cookies, which are set by external websites (other than the one you're currently on). These cookies are used primarily for tracking users across different websites and are now being phased out by major browsers such as Google Chrome and Safari due to increasing privacy regulations, such as the GDPR and California Consumer Privacy Act (CCPA)

Importantly, first-party cookies, which are set by the website a user is visiting, are not affected by these changes and will continue functioning normally. However, third-party cookies — which many businesses rely on for functions like cross-site tracking, ad targeting, and user behavior analytics — will no longer be supported, creating challenges for platforms that integrate external services, such as payment gateways.

How Does This Affect Payment Integrations?

For businesses operating in the fintech space—particularly those offering payment integration solutions—the elimination of third-party cookies presents a series of challenges. Without third-party cookies, user preferences and sessions will no longer be automatically saved by external payment services or platforms, leading to disruptions in the seamless experience that users have come to expect.

For example, consider a mobile payment platform or digital banking service integrating with a third-party payment gateway. Typically, third-party cookies would enable users to store their payment preferences and session data. However, with the deprecation of third-party cookies, users might now have to re-enter their information during every visit or transaction, negatively impacting the user experience.

To maintain seamless payment flows, fintech and paytech providers will need to adapt by implementing alternative technologies. One such solution is tokenization — where user data (like payment details and preferences) is securely stored and exchanged using tokens instead of cookies. This allows businesses to share necessary user information between the main site and payment gateway while ensuring user privacy and data protection.

Adapting Payment Systems with Tokenization

Tokenization has emerged as a vital solution for payment orchestration platforms dealing with the loss of third-party cookies. Through token-based systems, sensitive data is replaced by a secure token, which can then be passed between the site and the payment provider. This process not only ensures the preservation of the user's preferences but also enhances security, reducing the risk of data breaches.

How Do These Changes Benefit End Users?

While the removal of third-party cookies may initially seem like a setback for businesses, it ultimately benefits the end user by significantly enhancing privacy and data security. By limiting third-party websites' ability to track users across different domains, malicious actors will find it harder to exploit user data for fraudulent activities.

In addition, privacy-conscious technologies, such as tokenization and first-party data solutions, reduce the need for storing sensitive information in less secure environments. GDPR and similar regulations are already encouraging businesses to embrace these strategies, resulting in a more transparent and secure digital landscape for consumers.

Security First: How Privacy Enhancements Improve Trust

Consumers are increasingly concerned about how their data is being used. By adopting new privacy-first technologies and moving away from third-party cookies, businesses in the fintech and e-commerce sectors can build trust with their users. Providing secure and transparent payment options fosters consumer loyalty and positions businesses as leaders in digital security.

Conclusion

The deprecation of third-party cookies presents both challenges and opportunities for businesses, especially in the payment solutions industry. By investing in tokenization, enhanced user consent management, and other privacy-focused strategies, fintech providers can ensure a seamless, secure payment experience while safeguarding user data.

As the industry adapts to this new privacy landscape, businesses and software development teams, will need to evolve their payment infrastructure. Implementing privacy-conscious solutions will not only help them navigate the challenges brought by the shift away from third-party cookies but will also create a safer, more trusted digital ecosystem for all users.