One of the leading companies in the digital payment ecosystem, Visa recently confirmed that the company has issued more than four billion network tokens around the world through its token service. The Visa Token Service (VTS) has witnessed a significant jump in popularity during the past 12 months.
In an official announcement shared by the company on Wednesday, Visa noted that the volume related to e-commerce increased by more than 50% since the outbreak of the pandemic. Due to the rise in demand for digital transactions, Visa tokens have now surpassed physical Visa cards in circulation.
“Tokenization is a simple, yet powerful concept pioneered by Visa: conceal and devalue sensitive payment data to stay ahead of fraudsters and make digital payments more secure,” said Jack Forestell, the Executive Vice President and Chief Product Officer at Visa. “The uptick in issuers, acquirers, merchants, and consumers all transacting with Visa tokens, reinforces that the future of money is truly digital, and digital money must be built on trust.”
In the past few years, Visa has increased its acquisition activities to boost its global presence. In March this year, the Nasdaq-listed firm announced the completion of the acquisition of Tink, an open banking platform.
Digital Transactions
According to Forestell, the company is committed to providing a safe and technology-driven environment for international transactions.
“This milestone is indicative of the continued investment Visa is making in safe, reliable and seamless transactions around the globe. Continued adoption of tokenization will help enable Visa’s mission of helping individuals, businesses and economies thrive,” Forestell added.
The results of an analysis from Visa indicate that the fraud rate has decreased due to the use of Visa tokens.
"Tokens are the unsung heroes of ecommerce which the entire payments ecosystem can benefit from, with issuers, acquirers, merchants and consumers all seeing a range of benefits including reduced fraud, ease of use across devices and more," the company added.
