As a result, „We’ve seen a fraud reduction rate of 26% for digital transactions processed through Visa Token Service compared to traditional online card transactions.”, Visa said.
Visa Inc. announced that 28 new partners will be joining Visa Token Service as credential-on-file (COF) token requestors. „These new partners will help make digital transactions more secure by tokenizing both one-time and recurring payments made with Visa credentials.”, according to the press release.
Tokenization replaces a cardholder’s 16-digit Visa account number with a token that only Visa can unlock, protecting the underlying card number from fraudsters.
New partners joining Visa Token Service include acquirer gateway and technology partners Assist, Aurus, BlueSnap, Braspag, Bambora, DPO PayGate, eComCharge, Fat Zebra, eGHL, Infinitium, iPay88, iVeri, LiqPay/PrivatBank, Mail.ru, Moneris, One Inc., Omise, Payture, Payvision, Portmone.com, RBK.Money, Spreedly, Tickets Travel Network EESTI, Tranzzo, walletdoc, WayForPay, Windcave, and Yandex.Money.
„Once certified, these 28 partners will be able to tokenize credential-on-file digital payments on behalf of their merchant and payment clients for an additional level of security.”, Visa said.
In addition to enhancing security, tokenization also helps reduce friction in the payment process, because customers do not have to manually update stored card information if their Visa card is lost, stolen or expires. Instead, financial institutions can automatically update expired or compromised payment credentials. „This can reduce missed payments for merchants, and help consumers avoid unwanted late payment fees or charges.”, according to Visa.
More than two-thirds (69%) of US consumers choose to store a card-on-file or have recurring billing set up with merchants1. Increasingly, these merchants are choosing tokenization to make their customers’ online shopping and recurring digital payments less susceptible to fraud, with Visa adding more than 150 token requestor partners to Visa Token Service in the last five years.
“Consumers are shifting more rapidly than ever to digital-first commerce, no matter what they’re buying, and tokenization is one of the most effective tools Visa uses to fight fraud and improve the digital payment experience,” said Ansar Ansari, senior vice president, digital payment products, Visa. “We’ve seen a fraud reduction rate of 26% for digital transactions processed through Visa Token Service compared to traditional online card transactions2. That’s impressive, and these new partners will only add to the momentum.”
Since the launch of the Visa Token Service in 2014, Visa has added more than 150 global token requestors—including mobile and wearable manufactures, issuer wallets, online merchants, payment service providers and acquirers—from 137 markets onto the token platform. Visa recently announced participants in Visa Token Service (VTS) are estimated to process a combined digital payment volume of $1 trillion3, marking a significant opportunity in its efforts to make digital payments more secure.
Comments from Partners:
“Visa Token Service addresses three key needs of ecommerce merchants: increased payment conversions, greater security and reducing friction from the card user experience,” said Ralph Dangelmaier, CEO, BlueSnap.
“As consumers, many of us have experienced the challenge of updating card details in multiple platforms when a card becomes lost or expired. This latest innovation by Visa will help Bambora merchants increase authorization rates, while providing consumers with a more seamless and secure customer experience – it’s a win-win.”, said Anne McDonnell, APAC Managing Director, Bambora.
“We are excited to offer the Visa Token Services to Omise merchants across Southeast Asia in the future,” said Anuchit Chitpirom, Chief Operating Officer, Omise. “Dynamic updates of credentials when a card is lost, stolen or expired helps ensure uninterrupted service for end consumers and improved authorization rates for our merchants.”
“Online payments have become an indispensable tool for businesses and it is very important to make them as accessible and secure as possible, both for buyers and sellers. At Payture, we are confident that tokenization will continue to be an integral part of the digital payment experience,” said Anna Salomatova, Chief Commercial Officer, Payture. “We believe that this is a big step for the entire eCommerce community in Russia and the CIS, and will make online payments more convenient and secure for all market players.”
“By adding Visa’s network tokens, Payvision enhances its existent tokenization solution with an additional layer of security for effective fraud prevention,” said John Snoek, Chief Product Officer, Payvision. “E-commerce and in-app channels, especially for ‘Card-on-file’ transactions, will see a higher authorization rate and improved conversions.”
“Portmone.com is excited to support Visa Token Service and offer it to merchants, users and bank-partners in Ukraine and other markets across the CIS SEE region,” said Sviatoslav Komakha, CEO, Portmone.com. “Regular high-frequency payments in two clicks is the core of our business model and VTS fits perfectly here with an improved card on file experience, better security and higher conversion rates.”
“As a popular PSP in Russia, Yandex.Checkout is proud to offer clients heightened security and reduced friction in the customer experience through our extended partnership with Visa,” said Yulia Gorelova, head of payment business at Yandex.Money (parent company for Yandex.Checkout). “As a token requestor in Russia, we expect to provide new opportunities for merchants in the region by reducing friction in payment processes and card credentials storage.”
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1 Visa Transaction Data, Rolling 12 month ending September 2018, Issuer region: US
2 Visa Transaction Data, April-June 2018, Issuer region: US
3 This figure is a combination of actuals and PV estimates reported by Visa
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
