Visa has announced a significant achievement in its tokenization technology, generating over $40 billion in additional e-commerce revenue for businesses worldwide and saving $650 million in fraud prevention.
The payment giant revealed that it has issued more than 10 billion tokens since introducing the technology ten years ago.
Introduced in 2014, Visa’s tokenization technology replaces sensitive personal data with cryptographic keys, enhancing the security of digital payments and mitigating financial scams. Visa reported that 29% of all transactions it processes now use tokens.
Jack Forestell, Visa’s CPO, commented: “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.”
The adoption of tokens has 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 utilize Visa tokens daily.
Despite these advancements, many consumers remain uneasy about their data privacy. A Visa survey revealed that less than one-third of consumers globally feel in control of their data. Visa aims to address this concern through its data tokens, which promise enhanced transparency and control over personal data usage.
Recently, Visa enrolled 22 startups from across Africa in its fintech accelerator program. Spanning 12 weeks, the program aims to provide mentorship, training, networking opportunities, and access to funding for these startups.
The selected startups offer a variety of solutions, from neo-banking to social commerce, addressing the unique challenges and opportunities within Africa’s fintech ecosystem. This diversity underscores Visa’s commitment to supporting a broad range of innovations that can drive significant change.
The program will culminate in an in-person Demo Day, where startups will present 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.
