Visa’s Token Service (VTS) has driven a remarkable uplift in the digital economy of Asia Pacific, contributing more than USD2 billion in 2023.
Visa’s Token Service replaces traditional 16-digit debit or credit card numbers with unique identifiers known as tokens. These tokens secure payment credentials, facilitating the transfer of enriched data, which improves payment success rates and reduces fraud. The increased security and ease of use across devices have led to a superior consumer experience.
Enhancing Payment Security and Efficiency
Tokens improve payment processing by providing greater control and richer data exchange for each transaction. This advancement has significantly reduced instances of legitimate transactions being declined, a common frustration for consumers and merchants alike. Merchants who have implemented VTS have seen a combined authorization uplift of USD2 billion and a reduction in payment fraud rates by over half (58%).
“Consumers and businesses alike expect payments to be secure and seamless, and network tokens are the enabler,” said Previn Pillay, Head of Merchant Sales & Acquiring, Asia Pacific, Visa. “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 on their top and bottom lines.”
Expanding Modern Payment Experiences
Visa is expanding the capabilities of tokenized credentials to enhance online payment experiences. With tokens, consumers no longer need to manually enter their 16-digit card numbers when making online purchases or update their card details across multiple platforms when the card expires or is replaced. VTS ensures that merchants can securely update their customers’ payment information through Visa’s platform, providing seamless and uninterrupted payment experiences with fewer authorization declines.
“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,” said TR Ramachandran, Head of Products and Solutions, Asia Pacific, Visa. “We continue to build on the capabilities that modern credentials offer, together with our partners, to bring more value to the entire payment ecosystem.”
The Future of Tokenization
The adoption of Visa Token Service underscores the growing importance of secure and efficient digital payment solutions in the rapidly evolving digital economy of Asia Pacific. Visa’s continued innovation in this space promises to further enhance the consumer experience and support merchants in maximizing their operational efficiency and customer engagement.
