The safety and security of digital transactions still need some improvement. Considering this, Visa has embraced tokenization and introduced its Visa Token Service, which guarantees the security of digital payments and simplifies the purchasing experience. Over the past few years, digital payments have been seeing a massive rise in popularity. However, the impact of the Covid pandemic has contributed enormously to an even more considerable digital shift within societies across the globe.
Considering these challenges, Visa Inc. Apart from greater security, tokenization also contributes to friction reduction during the payment process, as customers are not required to manually update stored card information if their card has been lost or expired. Instead, financial institutions, e. The benefits of tokenization outlined above mean that it is sure to become even more of a driving force in digital payments, especially considering the fact that digital shopping is ever more ingrained in our lives and we will need the best possible security for our digital payments.
By embracing tokenization, Visa has managed to tokenize its branded payment cards and become the key player in the US card market. Back in , Visa launched its Visa Token Service and since then the company has welcomed more than global token requestors, including mobile and wearables manufacturers, issuer wallets, online merchants, and retailers who are eagerly adopting the new ingenious technology.
The VTS has been essential to minimizing digital fraud all over the world and making eCommerce more secure for different types of digital transactions. In February , Visa Inc. To provide even greater security, the Visa Token Service always welcomes new participants who can act as credential-on-file COF token requesters and help make digital payments more secure.
So, for instance, in May Visa announced that 28 new partners would join the initiative, including Aurus, PayVision, Yandex. Money, and many others. Thanks to the VTS, digital payment service providers as well as financial institutions have been able to provide their customers with a reliable and safe way to shop both online and with their mobile devices. But what does the entire procedure of token initiation look like?
