The widespread adoption of the Visa Token Service (VTS) helped boost digital commerce in 2023 in the Asia Pacific. The payment processor’s service, which replaces traditional card numbers with unique tokens, has reportedly added more than $2 billion in transaction value to the region’s digital economy.
VTS enhances the security and efficiency of digital payments by substituting the 16-digit card number with a token only Visa can unlock. This approach not only secures the payment process but also enriches data transfer, which contributes to improved payment success rates and lower fraud rates. The streamlined and secure payment process fosters a better consumer experience, whether shopping online or in-store.
“Consumers and businesses expect payments to be secure and seamless, and network tokens are the enabler,” said Previn Pillay, head of Merchant Sales & Acquiring for Asia Pacific, Visa. “The uplift in authorization and reduced fraud rates allow merchants to focus more on innovation and customer engagement.”
He urged more merchants to adopt tokenized payments to positively impact their business performance.
With over one billion tokens issued in Apac, VTS has notably enhanced payment processing by reducing transaction declines. This benefit is particularly valuable for both consumers and merchants who face fewer disruptions during transactions. Merchants using VTS have seen a $2 billion rise in payment success and a significant 58% drop in fraud rates.
Visa is expanding the applications of tokenized payments, simplifying the online shopping experience by eliminating the need for consumers to repeatedly enter their card details or update them across platforms. VTS also ensures merchants can securely update their customers’ payment details, facilitating uninterrupted transactions across various devices.
“Tokens pave the way for the future of commerce, enabling new and personalized consumer experiences beyond physical cards,” said TR Ramachandran, head of Products and Solutions in Asia Pacific, Visa.
Visa continues to collaborate with partners to enhance these capabilities, aiming to add more value to the payment ecosystem.