Thanks to the VTS, digital payment service providers as well as financial institutions have been able to provide their customers with a reliable and safe way to shop both online and with their mobile devices. How the Visa Token Service worksĪccording to the statistics provided by Visa, as of April 2021, the Visa Token Service issued 2+billion tokens, and around 615, 000 merchants around the world were transacting via Visa tokens. So, for instance, in May 2020 Visa announced that 28 new partners would join the initiative, including Aurus, PayVision, Yandex.Money, and many others. To provide even greater security, the Visa Token Service always welcomes new participants who can act as credential-on-file (COF) token requesters and help make digital payments more secure. announced that its VTS participants were estimated to have processed a combined eCommerce volume of about $1 trillion, thus marking a considerable milestone in its efforts to make digital payments more secure and trouble-free. Thanks to Visa tokens, it’s been possible to reduce fraud by 26% compared to traditional online card transactions where users have to enter their PAN online. The VTS has been essential to minimizing digital fraud all over the world and making eCommerce more secure for different types of digital transactions. that replaces sensitive account information - the 16-digit primary account number, or PAN - with a unique digital identifier called a token, which enables payment processing without exposing the account details. The Visa Token Service (VTS) is a novel security technology by Visa Inc. Back in 2014, Visa launched its Visa Token Service and since then the company has welcomed more than 150 global token requestors, including mobile and wearables manufacturers, issuer wallets, online merchants, and retailers who are eagerly adopting the new ingenious technology. Get to know which countries and businesses accept Bitcoin paymentsīy embracing tokenization, Visa has managed to tokenize its branded payment cards and become the key player in the US card market. The benefits of tokenization outlined above mean that it is sure to become even more of a driving force in digital payments, especially considering the fact that digital shopping is ever more ingrained in our lives and we will need the best possible security for our digital payments. Consequently, this will lead to fewer missed payments for merchants and allow customers to avoid undesirable late payment fees and/or charges.
MERCHANT TOKEN UPDATE
banks, will be able to automatically update expired or compromised payment credentials. In the payment sector, tokenization is used to secure a card’s PAN by substituting it with a unique string of numbers that cannot be stolen or re-used.Īpart from greater security, tokenization also contributes to friction reduction during the payment process, as customers are not required to manually update stored card information if their card has been lost or expired. Tokenization is a process of replacing sensitive information with a unique identifier, also known as a “token”, which is created to protect the underlying confidential data. First and foremost: what is tokenization?
Read on to discover how the Visa Token Service works and how it can improve the eCommerce sector, what other Visa tokenization solutions exist, and what Visa’s value-added services can offer. According to a new study conducted by Juniper Research: “Online payment fraud: emerging threats, segment analysis & market forecasts 2020-2024”, businesses in eCommerce, airline ticketing, money transfer, and banking services may lose about $200 billion due to online payment fraud between 20 if no measures are taken.Ĭonsidering these challenges, Visa Inc., an American multinational financial services corporation, has joined a rapidly progressing, security-oriented tokenization trend and introduced its Visa Token Service (VTS) aimed at reducing digital fraud and contributing to more efficient and secure digital commerce. However, there has been a corresponding increase in the amount of fraudulent activity, with hackers attempting to steal card holders’ personal information. The crisis has radically changed the way we live, work, communicate, and, not least, shop - therefore, we’ve started using digital payments much more often to obtain the goods and services that we need the most. However, the impact of the Covid-19 pandemic has contributed enormously to an even more considerable digital shift within societies across the globe. Over the past few years, digital payments have been seeing a massive rise in popularity.
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