VISA has reached a significant milestone with its tokenization technology, issuing over 10 billion tokens since its inception in 2014. This achievement has translated into more than $40 billion in additional ecommerce revenue globally and has saved $650 million in fraud over the past year alone, VISA announced at the Money20/20 event in Amsterdam.
Tokenization technology enhances security in digital payments by replacing sensitive personal data with encrypted tokens. These tokens, which are useless to unauthorized parties, have been integrated into various devices, significantly bolstering the security of online transactions. Currently, 29% of all VISA transactions utilize tokens, underscoring their widespread adoption and the confidence consumers place in this secure payment method.
Jack Forestell, Chief Product Officer at VISA, emphasized the transformative impact of tokens on the payment ecosystem, citing a six-basis point increase in global payment approval rates. This technology has also demonstrated the capability to reduce fraud rates by up to 60%, ensuring more successful transactions for businesses and providing peace of mind to consumers and merchants alike.
Looking ahead, VISA envisions tokens not only continuing to enhance security but also empowering consumers with greater control over their data. Future developments could enable consumers to manage data sharing preferences directly from their banking apps, offering transparency and personalization in data usage, powered by artificial intelligence.
Mehret Habteab, Senior Vice President of Product and Solutions at VISA Europe, highlighted the broad global adoption of tokenization across over 8,000 issuers in more than 200 markets. The accelerated adoption in recent years, fueled in part by the digital shift during the pandemic, underscores tokens’ pivotal role in shaping the future of digital commerce.
VISA’s milestone underscores its commitment to advancing secure and convenient digital payments globally, paving the way for further innovations in the evolving landscape of financial technology.
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