Visa Issues 10 Billionth Token, Generating $40 Billion in Incremental E-commerce Globally
June 04 2024 - 7:30AM
Business Wire
- Tokenized payments have saved $650 million in fraud in the last
year.
- Recently unveiled Visa data tokens will give consumers more
control over their data and deliver seamless AI-powered shopping
experiences.
Visa today announced a significant milestone achieved by its
tokenization technology, revealing that Visa tokens have generated
more than $40 billion1 in incremental ecommerce revenue for
businesses globally and saved $650 million2 in fraud in the last
year. Visa also announced it has issued more than 10 billion tokens
since the technology’s launch in 2014.
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Over the last 10 years, Visa has further enhanced security
across the payment ecosystem through tokenization – a technology
that replaces sensitive personal data with a cryptographic key that
conceals sensitive payment data. Tokenization can be embedded into
any device, making digital payments more secure while being
virtually useless to scammers.
Currently, 29% of all transactions processed by Visa use
tokens3, reflecting their widespread adoption and the trust
consumers place in this secure payment method.
Tokenization technology has also caused a six-basis point
increase in payment approval rates globally. Overall, tokenization
can reduce the rate of fraud by up to 60%, providing businesses
with more successful transactions and offering much-needed peace of
mind to consumers and merchants of all sizes4.
“Today’s milestone represents the impact that tokenization has
had on the entire payments ecosystem since we introduced the
technology 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 tapping to
pay on a phone to enabling a future where we have more control over
our data in the age of AI.”
Visa, which announced the milestone live onstage at Money20/20
in Amsterdam today, issued its billionth token in 2020. Due in part
to the shift to digital during the pandemic, the adoption of tokens
accelerated significantly in the last four years. Today, over 8,000
issuers are enabled for tokenization, with over 200 markets
empowered with the technology globally. In the last 12 months, over
1.5 million eCommerce merchants transacted with Visa Tokens every
day.
The future of tokens: Transforming the consumer
experience
A recent Visa survey revealed that less than one third of
consumers globally feel in control of their data5, and only
slightly more than one third fully understand how their data is
used. However, tokenization can unlock a whole new era of
personalization and security—one where consumers control their data
and approve when and where it can be shared for a more personalized
experience.
In the not-too-distant future, Visa data tokens could help
merchants and commerce platforms 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 no longer do) as well as how
your data will be used. Powered by AI, Visa data tokens let
consumers view, consent to and revoke data sharing access, right
from their banking app.
“Over the last 10 years, Visa has invested in scaling its token
infrastructure to power safer and more convenient digital commerce
for consumers and merchants here in Europe, and in nearly every
market across the world,” said Mehret Habteab, Senior Vice
President of Product and Solutions at Visa Europe, who announced
the news today in Amsterdam. “As AI begins to create more
personalized experiences online, we’re using our token expertise to
give people more control over their payments data.”
About Visa
Visa (NYSE: V) is a world leader in digital payments,
facilitating transactions between consumers, merchants, financial
institutions and government entities across 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 economies that include everyone everywhere, uplift
everyone everywhere and see access as foundational to the future of
money movement. Learn more at Visa.com.
1 VisaNet CY2023 credit and debit global card-not-present (CNP)
payment volume for tokenized and non-tokenized credentials 2 Risk
Datamart CY2023, Visa Processed global card-not-present (CNP)
payment volume for tokenized vs 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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version on businesswire.com: https://www.businesswire.com/news/home/20240604543361/en/
Meg Omecene momecene@visa.com
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