Visa revealed that its token helped businesses in Nigeria and around the world generate more than $40 billion in e-commerce revenue last year and reduced fraud losses by $650 million.
Visa has issued more than 10 billion tokens since introducing the technology in 2014.
Visa said that over the past decade, it has further strengthened security across its 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 also making them virtually useless to fraudsters.
Currently, 29% of all transactions processed by Visa use the token, reflecting its widespread adoption and consumer trust in this secure payment method.
Tokenization technology has seen a 6 basis point increase in payment approval rates globally. Overall, tokenization reduces fraud rates by up to 60%, enabling businesses to achieve more successful transactions and providing much-needed peace of mind to consumers and merchants of all sizes.
Jack Forestell, chief product officer at Visa, said: “Today's milestone represents the impact tokenization has had across the payments ecosystem since we introduced the technology 10 years ago.
“Tokens have changed the game – making online payments secure and paving the way for further innovation, from paying with a tap on your phone to enabling a future where we have more control over our data in the AI era.”
Visa recently announced the milestone live on stage at Money20/20 in Amsterdam, Netherlands, marking the issuance of its 1 billionth token in 2020. Token adoption has accelerated significantly over the past four years, due in part to the shift to digital during the pandemic.
More than 8,000 issuers are now tokenized, with more than 200 markets around the world leveraging the technology. Over the past 12 months, more than 1.5 million e-commerce merchants have transacted with Visa tokens every day.
A recent Visa survey revealed that less than a third of consumers worldwide feel in control of their data, and just over a third fully understand how their data is used. But tokenization could usher in a whole new era of personalization and security — one where consumers control their data and approve when and where it is shared, delivering more personalized experiences.
Visa explained that in the not-too-distant future, data tokens will enable retailers and commerce platforms to use users' data in a way that is transparent and gives users control — meaning users will be able to decide who has access to their data (and when they no longer have access), and how their data will be used.
