Connect with us

Hi, what are you looking for?

HEADLINES

Visa tokens bring $2B uplift to digital commerce 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.

Asia Pacific’s digital economy experienced an uplift of more than USD2 billion[1] 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[2] 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%)[3].

“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.

Advertisement. Scroll to continue reading.

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.


[1] Processed payment volume using tokenized credentials over VisaNet in AP region for the year Jan to Dec 2023 multiplied by the authorization uplift.

[2] Number of tokens issued on Visa systems associated with Issuers licensed in Asia Pacific region as of March 2024.

[3] Visa Risk Datamart, Global, FY22 Q1–Q4 Token Fraud Rate vs PAN Fraud Rate by PV for merchants with over 1,000 CNP token transactions per month per country. Merchant’s individual results may vary.

Advertisement. Scroll to continue reading.

Advertisement
Advertisement
Advertisement

Like Us On Facebook

You May Also Like

HEADLINES

To meet surging AI demands, 43% of new data center facilities are expected to be dedicated to AI workloads. With AI model training and...

HEADLINES

Qwen2.5-Omni-7B delivers uncompromised performance and powerful multimodal capabilities. This unique combination makes it the perfect foundation for developing agile, cost-effective AI agents that deliver...

HEADLINES

As technology becomes increasingly integral to everyday life, digitally savvy kids can enhance their tech skills to further enrich their knowledge and creativity. This...

HEADLINES

Maya’s fraud detection approach, Transaction Sequence Embeddings, analyzes and uncovers subtle patterns between transactions —flagging those that resemble fraudulent behavior or deviate from a...

SOFTWARE

With these enhancements, Copilot is now more accessible than ever across Windows 11, macOS, mobile apps, and Telegram. Plus, with improved local interoperability, Copilot...

HEADLINES

Within just one month, Lenovo has opened four new Exclusive Stores, strengthening its nationwide presence and making its innovative AI-powered devices more accessible to...

White Papers

Coursera data shows that while the country has the highest share of women in GenAI enrollments in the region and ranks among the top...

HEADLINES

According to Ren-Ren Reyes, president and CEO of G-Xchange, Inc., “This MOA with NPC underscores our commitment to upholding the highest standards of data...

Advertisement