Visa has announced that it has
achieved a new milestone in its tokenization technology by generating more than
$40 billion in incremental e-commerce revenue for businesses globally and saving $650 million in fraud. The payment giant mentioned that it has issued more than 10 billion tokens since launching the technology ten years ago.
Impact of Visa Tokenization
Visa introduced tokenization in 2014 as a solution to
replace sensitive personal data with cryptographic keys. This technology
promises to secure digital payments and prevent financial scams. Visa
mentioned that 29% of all transactions that it processes use tokens.
Jack Forestell, Visa‘s Chief Product Officer, mentioned: “Today’s milestone represents the impact that tokenization has had on the entire payments ecosystem since we introduced the technology ten years ago. Tokens have changed the game, securing online payments and paving the way for more innovations—from tapping to pay on the phone to enabling a future
where we have more control over our data in the age of AI.”
Visa has officially issued more than 10 billion tokens! In the last year alone, tokenization has generated $40B in incremental e-commerce revenue globally ?. Learn more about this milestone and how tokens are transforming the consumer experience: https://t.co/3HFLS7NtGT pic.twitter.com/GbuJY2O4Ja
— VisaNews (@VisaNews) June 4, 2024
The use of tokens has reportedly led to a six-basis
point increase in global payment approval rates and reduced fraud rates by up
to 60%. Over 8,000 issuers and more than 1.5 million e-commerce merchants now
utilize Visa tokens daily.
Despite this growth, many consumers still feel
uncertain about their data privacy. A survey by Visa revealed that less than
one-third of consumers globally feel in control of their data. Visa aims to
address this through its data tokens, which promise greater transparency and
control over personal data usage.
Expanding Reach
Recently, Visa enrolled 22 startups from across Africa in its fintech accelerator program. The program, spanning 12 weeks, aims to
provide mentorship, training, networking opportunities, and access to funding
for these startups.
The selected startups offer a range of solutions, from
neo-banking to social commerce, designed to address the unique challenges and
opportunities present in Africa’s fintech ecosystem. This diversity reflects
Visa’s commitment to supporting a wide array of innovations that can drive
meaningful change.
The program will culminate in an in-person Demo Day,
where startups will showcase their innovations to key stakeholders, investors, and venture capitalists. This event will serve as a
platform for these startups to gain visibility and potentially secure further
support for their ventures.
This article was written by Jared Kirui at www.financemagnates.com.
