Visa’s tokenization technology has driven $40 billion in incremental e-commerce revenue and prevented $650 million in fraud over the past year, with over 10 billion tokens issued since 2014. This technology enhances payment security and offers a future where consumers have greater control over their data.
5 June 2024 – Visa has announced a significant milestone with its tokenization technology, reporting that Visa tokens have contributed over $40 billion in incremental e-commerce revenue globally and saved $650 million in fraud prevention over the past year. Since the technology’s inception in 2014, Visa has issued more than 10 billion tokens.
Over the past decade, Visa has enhanced payment security through tokenization, which replaces sensitive payment data with a cryptographic key, rendering the data virtually useless to scammers. This technology can be integrated into any device, bolstering the security of digital payments. Currently, 29% of all Visa transactions are processed using tokens, highlighting their widespread adoption and consumer trust.
Tokenization has also led to a six-basis point increase in global payment approval rates and can reduce fraud rates by up to 60%, benefiting businesses with higher transaction success and providing security for consumers and merchants alike.
“Today’s milestone represents the impact that tokenization has had on the entire payments ecosystem since we introduced the technology 10 years ago,” said Jack Forestell, Chief Product Officer at Visa. “Tokens have changed the game – securing online payments and paving the way for more innovations – from tapping to pay on a phone to enabling a future where we have more control over our data in the age of AI.”
Visa, which celebrated this achievement at Money20/20 in Amsterdam, issued its billionth token in 2020. The shift to digital during the pandemic accelerated token adoption, with over 8,000 issuers and 200 markets now enabled for tokenization globally. In the past year, more than 1.5 million e-commerce merchants have transacted with Visa tokens daily.
The Future of Tokenization: Enhanced Consumer Experience
A recent Visa survey revealed that less than one-third of consumers globally feel in control of their data, and only slightly more than one-third fully understand how their data is used. Tokenization promises to transform this by offering enhanced personalization and security, enabling consumers to control and approve the use of their data.
In the near future, Visa data tokens will allow consumers to manage data access transparently, deciding who can access their data and how it will be used. Powered by AI, Visa data tokens will enable consumers to view, consent to, and revoke data-sharing access through their banking apps.
“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,” said Mehret Habteab, Senior Vice President of Product and Solutions at Visa Europe, at the announcement in Amsterdam. “As AI begins to create more personalized experiences online, we’re using our token expertise to give people more control over their payments data.”
