Visa has announced the issuance of its 10 billionth token, marking a significant milestone in its tokenization technology journey. Launched in 2014, the Visa Token Service (VTS) has generated over $40 billion in incremental e-commerce revenue and saved $650 million in fraud prevention over the past year. This achievement was highlighted at the Money20/20 conference in Amsterdam.
Today’s milestone represents the impact that tokenization has had on the entire payments ecosystem since we introduced the technology 10 years ago. Tokens have changed the game – securing online payments and paving the way for more innovations – from tapping to pay on the phone to enabling a future where we have more control over our data in the age of AI.
Jack Forestell, Chief Product Officer at Visa Visa’s tokenization replaces sensitive card information with a unique digital identifier, enhancing payment security. As of now, 29% of all Visa transactions use tokens, leading to a 28% reduction in fraud and a six-basis point increase in global payment approval rates. Over 8,000 issuers and 1.5 million merchants are enabled for tokenization, with daily transactions continuing to grow.
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. As AI begins to create more personalized experiences online, we’re using our token expertise to give people more control over their payments data.
Mehret Habteab, Senior Vice President of Product and Solutions at Visa Europe Visa is set to introduce data tokens to provide consumers with greater control over their data. These tokens will enable users to view, consent to, and revoke data sharing directly from their banking apps, powered by AI for seamless personalization and security.
