Visa (NYSE: V) announced that the company has now issued more than 4 billion network tokens worldwide “through Visa Token Service (VTS), marking a major milestone in its proprietary offering to help secure digital payments and further accelerate ecommerce innovation and acceptance.”
This milestone, which nearly doubled Visa’s token count in one year, “surpasses the number of physical Visa cards in circulation worldwide.” This milestone “underscores the powerful security that tokens provide to merchants, issuers and consumers alike.”
Jack Forestell, executive vice president and chief product officer at Visa, said:
“Tokenization is a simple, yet powerful concept pioneered by Visa: conceal and devalue sensitive payment data to stay ahead of fraudsters and make digital payments more secure. The uptick in issuers, acquirers, merchants and consumers all transacting with Visa tokens, reinforces that the future of money is truly digital, and digital money must be built on trust.”
E-commerce volume has “grown by more than 50 percent1 since the onset of the pandemic. But with the convenience of online shopping comes increased consumer expectations and demand for simple and safe transactions.”
Visa is “innovating ahead of consumer demand through Visa Token Service, which replaces 16-digit Visa account numbers with a digital token only Visa can unlock, helping to protect the underlying account information from fraudsters and bad actors.”
Tokens are “the unsung heroes of ecommerce which the entire payments ecosystem can benefit from, with issuers, acquirers, merchants, and consumers all seeing a range of benefits including reduced fraud, ease of use across devices and more.”
Visa analysis shows that “across more than 8,600 issuers and 800,000 merchants, Visa tokens have led to a 28 percent reduction in fraud rates and a 3 percent increase in approval rates – increasing sales for merchants while saving them money on fraud-related expenses.”
In an age where most of our financial lives exist in the cloud, advanced technology helps ensure customer data is “protected wherever transactions take place.”
Authentication 2.0 – the future of consumer protection – is “anchored by tokens and tools such as Visa’s Cloud Token Framework (CTF), which is designed to enhance security and increase approval rates for card-not-present transactions across multiple payment experiences and devices.”
Forestell added:
“This milestone is indicative of the continued investment Visa is making in safe, reliable and seamless transactions around the globe. Continued adoption of tokenization will help enable Visa’s mission of helping individuals, businesses and economies thrive.”