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- Tokenized payments reduced fraud losses by $650 million last year.
- The recently announced Visa Data Token gives consumers more control over their data, enabling a seamless, AI-powered shopping experience.
SAN FRANCISCO — Visa today announced a significant milestone achieved through its tokenization technology, revealing that Visa Tokens have generated more than $40 billion in revenue.1 Increased e-commerce revenue for businesses around the world, resulting in savings of $650 million.2 Visa announced that it lost more than $10 billion in fraudulent transactions last year, and that it has issued more than 10 billion tokens since introducing the technology in 2014.
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Over the past decade, Visa has been adding additional security to the entire payments ecosystem through tokenization, a technology that replaces sensitive personal data with a cryptographic key that hides sensitive payment data. Tokenization can be built into any device, making digital payments more secure while simultaneously making them virtually useless to fraudsters.
Currently, 29% of all transactions processed by Visa use tokens.3This reflects the widespread adoption and consumer trust of this secure payment method.
Tokenization technology has increased payment authorization rates by 6 basis points globally. Overall, tokenization reduces fraud rates by up to 60%, resulting in more successful transactions for businesses and providing much-needed peace of mind to consumers and merchants of all sizes.Four.
“Today's milestone represents the impact tokenization has had across the payments ecosystem since we introduced the technology 10 years ago,” said Jack Forestell, chief product officer, Visa. “Tokens have changed the game – making online payments secure and paving the way for even more innovation, from tapping your phone to enabling a future where people have more control over their data in the age of AI.”
Visa announced the milestone live onstage at Money20/20 in Amsterdam today, issuing its 1 billionth token in 2020. Token adoption has accelerated significantly over the past four years, driven in part by the shift to digital during the pandemic. More than 8,000 issuers now support tokenization, with the technology active in more than 200 markets around the world. Over the past 12 months, more than 1.5 million e-commerce merchants have transacted with Visa tokens every day.
The Future of Tokens: Transforming the Consumer Experience
A recent Visa survey revealed that less than a third of consumers worldwide feel in control of their data.Fiveand only just over a third fully understand how their data is being used. But tokenization usher in a whole new era of personalization and security – one where consumers are in control of their data and can approve when and where it is shared, enabling more personalized experiences.
In the near future, Visa Data Tokens could help retailers and commerce platforms use users' data in a way that is transparent but gives users control – deciding who has access to their data (and when they no longer have access) and how it is used. Powered by AI, Visa Data Tokens will allow consumers to view, consent and revoke data sharing access directly from their banking app.
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“Over the past decade, Visa has invested in expanding our token infrastructure to power safer and more convenient digital commerce for consumers and merchants here in Europe and nearly every market around the world,” said Meret Habteev, senior vice president of products and solutions at Visa Europe, who announced the news today in Amsterdam. “As AI begins to create more personalized experiences online, we are leveraging our token expertise to give people more control over their payment data.”
About Visa
Visa (NYSE: V) is the world's leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and governments in more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payment network – enabling individuals, businesses and economies to thrive. We believe in an economy that includes and empowers everyone, everywhere and sees access as the foundational future of money movement. Learn more at Visa.com.
1 VisaNet 2023 Global Credit and Debit CNP Payments Volume with Tokenized and Non-Tokenized Credentials
2 Risk Datamart CY2023, Visa-processed global card-not-present (CNP) payment volume for tokenized and non-tokenized credentials.
3 Transactions processed by Visanet and Visa as of April 2024
Four Transactions processed by Visanet and Visa as of April 2024
Five Visa Consumer Empowerment Survey, 2023
View source version on businesswire.com: https://www.businesswire.com/news/home/20240604543361/en/
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