Visa Inc announced on Wednesday that it has released more than 4 billion network tokens globally via its security technology Visa Token Service (VTS), outnumbering the cumulative number of actual physical cards in circulation.
VTS protects the underlying account information by replacing 16-digit Visa account numbers with a token that only Visa can unlock.
"Without exposing the consumer's account to fraud, tokenization enables frictionless, card-free payments," Jack Forestell, executive vice president and chief product officer at Visa, said.
The service's success, pushed by the pledge of safer online transactions, coincides with an increase in online spending since the global outbreak of the COVID-19 pandemic.
According to data from the United States Department of Commerce, e-commerce volume has increased by more than 50% since the outbreak of the pandemic.
Visa stated that since launching VTS in 2014, it has issued 1 billion tokens, with growth accelerating to 2 billion in 2021 before doubling this year.
The demand is unlikely to wane, with most consumers maintaining the lockdown habit of swiping cards online and companies continuing to invest in making digital platforms more secure and user friendly.
"E-commerce is now happening everywhere. Online happens in-store as merchants look to provide more options for consumers. In-store, your phone can also be your Visa card," Forestell added.
VTS is a payments security platform that is compatible with popular apps such as Alphabet Inc's Google Pay and Apple Pay. It provides various solutions for retail consumers as well as institutions such as banks and clearing houses.
In the fourth week of July, Visa reported quarterly profits that exceeded expectations of Wall Street comfortably driven by strong spending by consumers that has remained so far being unaffected by high rates of sticky inflation as well as a boom in travellers for the summer all across most of the United States.
(Source:www.economictimes.com)
VTS protects the underlying account information by replacing 16-digit Visa account numbers with a token that only Visa can unlock.
"Without exposing the consumer's account to fraud, tokenization enables frictionless, card-free payments," Jack Forestell, executive vice president and chief product officer at Visa, said.
The service's success, pushed by the pledge of safer online transactions, coincides with an increase in online spending since the global outbreak of the COVID-19 pandemic.
According to data from the United States Department of Commerce, e-commerce volume has increased by more than 50% since the outbreak of the pandemic.
Visa stated that since launching VTS in 2014, it has issued 1 billion tokens, with growth accelerating to 2 billion in 2021 before doubling this year.
The demand is unlikely to wane, with most consumers maintaining the lockdown habit of swiping cards online and companies continuing to invest in making digital platforms more secure and user friendly.
"E-commerce is now happening everywhere. Online happens in-store as merchants look to provide more options for consumers. In-store, your phone can also be your Visa card," Forestell added.
VTS is a payments security platform that is compatible with popular apps such as Alphabet Inc's Google Pay and Apple Pay. It provides various solutions for retail consumers as well as institutions such as banks and clearing houses.
In the fourth week of July, Visa reported quarterly profits that exceeded expectations of Wall Street comfortably driven by strong spending by consumers that has remained so far being unaffected by high rates of sticky inflation as well as a boom in travellers for the summer all across most of the United States.
(Source:www.economictimes.com)
