- Visa has launched its token technology for transactions in 2014;
- The cardholder has more than 60 global requestors in its platform, Visa Token Service.
Offering security and less friction for consumers, token transactions are among the main technologies which keep rising in a scenario of digital payments that is changing at a fast pace. Aware of this trend, Visa has launched its Visa Token Service back in 2014, and since then, it has added more than 40 markets into its platform.
Surfing the rising wave of token transactions, the company has seen some quite positive results: In six months of adoption by local and global merchants, the volume of Visa’s tokenized transactions increased three-fold from the previous 12-month volume in Brazil – a market that plays one of the leading roles for Visa Token Service. Pushed by e-commerce and mobile commerce development, online payments are taking an ever-growing part in the sector, shaping big shifts in the financial landscape. The surge of fintechs, digital wallets and new payment features by big players such as Google and Facebook have already been changing the current scenario–not only in developed markets, but also in emergent ones. And the token technology has a long way ahead, gaining ground as a good solution to tackle online fraud and data leak.
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“Tokens are gradually becoming protagonists in the digital ecosystem and, along with 5G, are largely responsible for enabling your refrigerator, car or television to make integrated and secure payments. Undoubtedly, tokenization will have a strategic power and an outstanding value for those who adopt the technology first,” said Percival Jatobá, VP of Solutions and Innovation at Visa Brazil, in a press release.
According to information from VisaNet, last year, the US online shopping fraud rate for tokenized transactions was 22% lower than for non-tokenized transactions, in the period of January to March.