Visa issues 10 billionth token, generating $40 billion in incremental e-commerce globally

• Last year, tokenized payments saved $650 million in fraud.

• Visa’s recently announced data tokens will give consumers more control over their data and provide a seamless, AI-powered shopping experience.

SAN FRANCISCO, June 4, 2024–(BUSINESS WIRE)–Visa today announced a major milestone achieved through tokenization technology, revealing that Visa tokens have generated over $40 billion¹ in incremental e-commerce revenues for businesses around the world and saved $650 million² last year in fraud. Visa also announced that it has 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.

Currently, 29% of all transactions processed by Visa use tokens³reflecting 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%, providing businesses with more efficient transactions and providing much-needed peace of mind for consumers and merchants of all sizes⁴.

“Today’s milestone reflects the impact tokenization has had on the entire payments ecosystem since the technology was introduced 10 years ago,” said Jack Forestell, chief product officer at Visa. “Tokens have changed the game – securing online payments and paving the way for more innovations – from contactless payments via phone to enabling a future where we have more control over our data in the age of artificial intelligence.”

Visa, which announced the milestone live today on the Money20/20 stage 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.

The future of tokens: changing consumer experiences

A recent Visa study found that less than one-third of global consumers feel in control of their data⁵and only just over a 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.

The story continues

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.

“Over the past 10 years, Visa has invested in scaling its token infrastructure to bring more secure and convenient digital commerce to consumers and merchants in Europe and in almost every market around the world,” said Mehret Habteab, senior vice president of Products and Solutions at Visa Europe , who announced the news today in Amsterdam. “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.”

About Visa

Visa (NYSE: V) is a global leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and governments in more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that inclusive economies uplift everyone everywhere and see access as the foundation of the future of money flow. Find out more at Visa.com.

¹ VisaNet CY2023 Global Credit and Debit Card Not Present (CNP) Payment Volume for Tokenized and Non-Tokenized Credentials
² Risk Datamart CY2023, Visa Global card not present (CNP) payment volume processed for tokenized and non-tokenized credentials.
³ Visanet, Visa processed transactions as of April 2024
⁴ Visanet, Visa processed transactions as of April 2024
⁵ Visa Consumer Empowerment Research, 2023

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