Visa Token Service (VTS) is a blockchain-based system that aims to help the money processor facilitate its systems and give better user experience. VTS is estimated to provide an ecommerce value of nearly USD 1 trillion globally in 2020. This service will replace the standing Visa Checkout one to give a more simplified experience to customers, and it will kick off this January in the US, with a global coverage by the end of 2020.
Moreover, the Click to Pay is a smart system that will connect users to the Visa and banking network, without the need from the users to enter their 16 digit card number, input complex passwords or fill out different kinds of online forms when they wish to buy something online.
Instead, leveraging on the security of blockchain technology, the Visa network will utilise authentication methods including biometrics and device bindings to ensure that there are no frauds and the transactions are authenticated. The data would be written in a token so that actual details are encrypted and the data will not be editable.
„Starting January 21, active Visa Checkout merchants in the US will transition to a new, easy, smart and secure online shopping experience for card payments across web and mobile sites, mobile apps and connected devices. Consumers can leverage the click to pay experience when using their Visa card to make a purchase wherever they see a click to pay button where Visa is accepted.”, according to the press release.
“At Visa, one of our primary goals has always been to create the best customer experience possible. As digital transaction volume grows, there has never been more urgency to build increased confidence in the seamlessness and security of online shopping,” says Jack Forestell, Chief Product Officer, Visa. “This is why Visa is committed to the success of the click to pay experience and the added level of security that tokens bring to electronic payments.”
„On sites displaying a click to pay button, consumers that have enabled their card will no longer have to enter a 16-digit primary account number, look up passwords or fill out long forms to make a purchase. Consumers paying with their Visa card where they see a click to pay button where Visa is accepted, will also be able to pay with confidence knowing Visa will be using advanced technology and authentication methods, including device binding and biometrics to protect transactions.”, Visa added.
The click to pay experience is also interoperable with the EMVCo tokenization specification and with the 3-D Secure specification to bring more of today’s most advanced security methods to emerging and existing digital payments channels.
The Visa simplified online checkout experience will replace Visa Checkout in the US starting January 2020, and will continue to expand globally through the end of 2020 to additional markets.
„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”