The world’s largest payments company, Visa Inc.(NYSE:V), reported on Wednesday that it has issued more network tokens through its security technology Visa Token Service (VTS) than the total number of its physical cards in use.
The world’s largest payments company, Visa Inc., reported on Wednesday that it has issued more network tokens through its security technology Visa Token Service (VTS) than the total number of its physical cards in use.
VTS protects the underlying account information by swapping out 16-digit Visa account numbers with a token that only Visa can unlock.
Jack Forestell, Executive VP and CPO at Visa, told Reuters, that tokenization enables frictionless, card-free payments without exposing the consumer’s account to fraud.
The rise in online spending since the global COVID-19 outbreak is consistent with the popularity of the service, which is fueled by its guarantee of safer online transactions.
The largest payment processor in the world stated in a statement that data from the U.S. Department of Commerce showed an increase in e-commerce volume of more than 50% since the start of the pandemic.
Visa reported that from the inception of VTS in 2014, it had distributed 1 billion tokens by 2020, 2 billion in 2021, and then doubled that number this year.
Because most consumers continue to swipe their cards when shopping online and because businesses continue to invest in making digital platforms more safe and user-friendly, demand is unlikely to decline.
“Nowadays, e-commerce is prevalent everywhere. As retailers work to give customers more options, online occur in-store. Your phone may even serve as your Visa card in-store “Forestell threw in.
VTS functions as a payments security platform that provides a variety of solutions for both retail customers and organizations like banks and clearing houses. It is compatible with well-known apps like Alphabet Inc.’s Google Pay and Apple Pay.
As a result of solid consumer spending that has so far been unaffected by sizzling inflation and a summer travel boom that has swept much of the United States, Visa posted quarterly profit that easily surpassed Wall Street projections late in July.
Featured Image: Megapixl @Rafaelhenriquepress