Visa Issues 10 Billion Tokens, Thwarts US$650 Million in Fraud

Visa Issues 10 Billion Tokens, Thwarts US$650 Million in Fraud

by June 5, 2024

Payment giant Visa announced at Money20/20 in Amsterdam that it has issued 10 billion tokens through its tokenisation technology.

This has contributed over US$40 billion in additional e-commerce revenue globally and has prevented US$650 million in fraud over the past year.

Since its launch in 2014, Visa’s tokenisation technology has replaced sensitive payment data with cryptographic keys, enhancing security and making digital payments safer.

Tokenisation can be embedded into any device, making digital payments more secure while being virtually useless to scammers.

With 29% of all Visa transactions now using tokens, the technology has become a trusted method for consumers worldwide. It has also increased payment approval rates globally and can reduce fraud rates by up to 60%.

Visa issued its billionth token in 2020 as the adoption of tokenisation accelerated during the pandemic, with over 8,000 issuers and more than 200 markets now using the technology. Daily, over 1.5 million e-commerce merchants transact with Visa Tokens.

The company also highlighted the future potential of tokenisation. In the not-too-distant future, Visa data tokens could help merchants and commerce platforms use consumer data in a way that is both transparent and gives consumers control—meaning they decide who gets access to their data and when they no longer do.

Powered by AI, Visa data tokens let consumers view, consent to, and revoke data sharing access, right from their banking app.

Jack Forestell

Jack Forestell

“Today’s milestone represents the impact that tokenisation has had on the entire payments ecosystem since we introduced the technology 10 years ago.

 

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.”

said Jack Forestell, Chief Product Officer at Visa.

Mehret Habteab

Mehret Habteab

“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.

 

As AI begins to create more personalised experiences online, we’re using our token expertise to give people more control over their payments data.”

said Mehret Habteab, Senior Vice President of Product and Solutions at Visa Europe.

Featured image credit: Edited from Freepik