Visa announced earlier this year that its Visa Token Service will be getting 28 new partners. These partners will serve as credential-on-file (COF) token requestors, making digital transactions more secure.
The service tokenizes recurring and one-time payments that are made with Visa credentials. For cardholders who use a 6-digit Visa account number, this gets replaced with a token that is only unlockable by Visa, ensuring protection from fraudsters.
“Consumers are shifting more rapidly than ever to digital-first commerce, no matter what they’re buying, and tokenization is one of the most effective tools Visa uses to fight fraud and improve the digital payment experience,” Ansar Ansari, the senior vice president of digital payment products at Visa, said.
Ansari added that thanks to the Visa Token Service, the company has seen a fraud reduction rate of 26% when it comes to digital transactions. “That’s impressive, and these new partners will only add to the momentum,” Ansari said.
The new partners who will be joining the Visa Token Service include acquirer gateways and companies in technology. Some partners include Assist Belarus, BlueSnap, Payvision, and Windcave. When such companies become certified, they can tokenize digital payments on behalf of merchants for added security.
In addition to enhancing the security of online transactions, the act of tokenization can help reduce the friction that occurs during the payment process. This is because cardholders are not required to manually update their stored Visa card information if their cards become either compromised or expired. With tokenization, banks can automatically update payment credentials, thereby avoiding any unwanted late fees, as well as reducing missed payments for merchants.
Ralph Dangelmaier, the CEO at BlueSnap, agreed on the need to address concerns about security and friction when it comes to e-commerce activities. “Visa Token Service addresses three key needs of ecommerce merchants: increased payment conversions, greater security and reducing friction from the card user experience,” he explained. “We are excited that it will now be part of BlueSnap’s All-in-One Payment Platform.”
Within the last five years, Visa has added over 150 token requestor partners to the Visa Token Service, aiding consumers and merchants worldwide.
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