Visa's Token Services Contribute $2 Billion Boost to Asia-Pacific Market
Summary:
Visa reports that its Asia-Pacific token services provided over a billion tokens, contributing to a market increase exceeding $2 billion last year. The Visa Token Service links traditional bank details to digital payment platforms and facilitates secure transactions. Due to COVID-19, the adaptation of traditional assets into tokenised or digital form has significantly escalated. The head of products and solutions for the Asia-Pacific region at Visa, TR Ramachandran, asserts that tokens are essential for the progression of commerce. Previn Pillay, Visa's Head of Merchant Sales & Acquiring for Asia Pacific, promotes the adoption of tokenised payments for their potential positive impact on businesses.
On March 26, Visa proclaimed that its token services in the Asia-Pacific area had achieved over one billion tokens, contributing to an increase of more than $2 billion in the market last year. The Visa Token Service (VTS), unveiled in 2014, creates a link between traditional bank account data and digital payment platforms like Google Pay and Apple Pay. In essence, VTS swaps the usual 16-digit card number used by shoppers for a secure numerical token, ensuring customer financial data is shared without revealing personal or banking information. VTS runs on VisaNet, Visa's own network that can reportedly process over 56k transaction messages per second.
Tokenised payment methods are frequently used for cross border payments and international travel, as exchanging cash or executing wire transfers in different currencies can present multiple challenges. These obstacles can be avoided with tokenised assets like cryptocurrencies or tokenised payment systems like VTS. A recent Visa survey indicated that 97% of visitors to the Asia-Pacific region prefer not to use cash for payments. In 2023, this resulted in an average expenditure of $2,525 per trip.
The conversion of traditional assets to digital currencies and payment systems has grown considerably due to the impact of COVID-19. As travel returns to normal in a post-pandemic world, more and more customers are citing the need for international payment methods that offer low fees and minimal friction as core factors in their purchasing decisions.
Visa’s Asia-Pacific region Head of Products and Solutions, TR Ramachandran, stated in a press release that tokens are shaping the future of commerce, and the innovative potential of tokenised payment credentials is vast. Ramachandran added that Visa, alongside its partners, is focused on expanding the capabilities of modern credentials to add value to the entire payment ecosystem. Previn Pillay, the Head of Merchant Sales & Acquiring in Asia Pacific at Visa, encouraged more traders to embrace tokenised payments, stating that this technology can significantly impact their financial outcomes.
Published At
3/26/2024 9:30:00 PM
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