Visa has announced the issuance of its four billionth network token for e-commerce payments, surpassing the total number of physical cards in circulation globally.
The Visa Token Service (VTS) replaces traditional 16-digit account numbers with a digital token that can only be unlocked by Visa. Launched in 2014, VTS has experienced significant growth, with e-commerce volumes increasing over 50% since the start of the pandemic. In just one year, the number of tokens has nearly doubled to four billion.
This technology enhances security by protecting underlying account information from fraud and unauthorized access. According to Visa’s analysis involving more than 8,600 issuers and 800,000 merchants, the use of tokens has resulted in a 28% reduction in fraud rates and a 3% increase in approval rates.
Jack Forestell, EVP and chief product officer at Visa, stated, “The uptick in issuers, acquirers, merchants, and consumers all transacting with Visa tokens reinforces that the future of money is truly digital, and digital money must be built on trust.”