The Visa token generates $40 billion in incremental e-commerce globally

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Visa tokens generated more than $40 billion in incremental e-commerce revenue for businesses worldwide last year, saving $650 million in fraud.
This comes even after the digital payments company announced that it had issued over 10 billion tokens since introducing the technology in 2014.

Over the past 10 years, Visa has further enhanced security across the payments ecosystem through tokenization, a technology that replaces sensitive personal information with a cryptographic key that hides sensitive payment data. Tokenization can be embedded in any device, making digital payments more secure while being virtually useless to fraudsters.

Today, 29 percent of all transactions processed by Visa use tokens, reflecting their widespread adoption and the trust consumers have in this secure payment method. Tokenization technology also resulted in a six basis point increase in payment approval rates around the world. Overall, tokenization can reduce fraud rates by up to 60 percent, providing businesses with more efficient transactions and providing much-needed peace of mind for consumers and merchants of all sizes.

In a press statement released Thursday, Visa’s chief product officer, Jack Forestell, said: “Today’s milestone reflects the impact tokenization has had on the entire payments ecosystem since the technology was introduced 10 years ago. “Tokens have been a game-changer – they secure online payments and pave the way for more innovations – from contactless phone payments to enabling a future where we have more control over our data in the age of artificial intelligence.”

Visa, which announced the event live on stage at Money20/20 in Amsterdam, issued its billionth token in 2020. Due in part to the shift to digital technology during the pandemic, token adoption has accelerated significantly over the past four years. Currently, over 8,000 issuers have the ability to tokenize, and over 200 markets around the world are equipped with this technology.

Over the last 12 months, over 1.5 million eCommerce merchants have been transacting with Visa tokens every day.
A recent Visa study found that less than one-third of global consumers feel in control of their data, and only just over one-third fully understand how their data is used. But tokenization could open up a whole new era of personalization and security – one where consumers control their data and approve when and where it can be shared to deliver more personalized experiences.

In the near future, Visa data tokens could help merchants and marketplaces use your data in a way that is both transparent and gives you control – meaning you decide who gets access to your data (and when they don’t). . and how your data will be used. Visa’s AI-powered data tokens enable consumers to view, consent and revoke access to data sharing directly from the banking app.

Senior Vice President of Products and Solutions at Visa Europe, Mehret Habteab, said: “Over the past 10 years, Visa has invested in scaling its token infrastructure to deliver more secure and convenient digital commerce for consumers and merchants in Europe and in almost every market across world. As artificial intelligence begins to create more personalized online experiences, we are leveraging our token expertise to give people more control over their payment data.”

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