Visa tokens bring USD2 billion uplift to digital commerce in Asia Pacific
Asia Pacific’s digital economy
experienced an uplift of more than USD2 billion in 2023 as a result of Visa Token Service (VTS) adoption, Visa announced today.
This achievement underscores the powerful value that tokens bring to digital
commerce, both in-store and online, as the number of tokens reached the 1
billion milestone in Asia Pacific.
VTS replaces the 16-digit debit
or credit card number with a unique identifier called a token that only Visa
can unlock. Visa tokens secure the payment credential, enabling the transfer of
enhanced data, which can help to improve payment success rates and lower fraud
rates. These benefits, coupled with ease of use across devices, lead to an
improved consumer experience.
Tokens can also improve payment
processing by enabling greater control and enriching data exchange for each
transaction. These improvements have reduced cases where legitimate
transactions are declined by payment systems – an experience that can be
frustrating for consumers and merchants. Merchants who have adopted VTS for
their digital payments have experienced a higher payment success rate or authorization
uplift of USD2 billion while payment fraud rates are reduced by more than half
(58%).
“Consumers and businesses alike
expect payments to be secure and seamless and network tokens are the enabler.
With the authorization uplift and lowered fraud rates, merchants can focus more
of their valuable time and resources on product innovation and customer
engagement. We encourage more merchants to adopt tokenized payments as this
technology can make a direct impact to their top and bottom lines,” said Previn
Pillay, Head of Merchant Sales & Acquiring, Asia Pacific, Visa.
Visa is also expanding the modern
payment experiences that tokenized credentials can bring to online
environments. With tokens, consumers no longer need to manually key in their
16-digit credentials when paying online, or deal with the hassle of updating
their card details across multiple platforms when the card expires or needs to
be replaced. Similarly, VTS ensures that merchants can update their customers’
payment information securely through Visa’s platform, in turn offering these
customers seamless, uninterrupted payments with lower incidences of authorization
declines, whether paying through a smartphone, wearable, or smart appliance.
“Tokens pave the way for the
future of commerce as the innovation possibilities are immense with tokenized
payment credentials that can unlock new and more personalized consumer
experiences beyond physical Visa cards. We continue to build on the
capabilities that modern credentials offer, together with our partners, to
bring more value to the entire payment ecosystem,” said TR Ramachandran, Head
of Products and Solutions, Asia Pacific, Visa.
To learn more about how Visa is
leading the Token transformation, visit here.
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