Payment tokens change the game for Asia-Pacific’s businesses
Visa Token Service boosts sales, accelerates revenues and reduces payment declines for clients including Adyen, Afterpay and Foodpanda
The use of digital payment services has really taken off in the Asia-Pacific region over the past few years, with the speed and convenience of transactions offering major benefits for both merchants and consumers.
A big step forward, though, has come with the successful introduction of payment tokenisation technology, in particular the Visa Token Service (VTS), powered by Visa, the global digital payment network, which is having a significant positive impact on the e-commerce sector by enhancing security features and minimising the risk of payments being declined.
Such advances can be seen as a genuine game changer by helping to boost sales, revenue and all-round efficiency. Companies using VTS include Foodpanda, one of Asia’s leading food and groceries delivery apps, Adyen, a Dutch payments platform company, and Australian fintech company Afterpay, best known for its “buy now, pay later” model used by more than 140,000 retailers around the world.
These, and many other enterprises can attest to the impact tokenisation has had on their businesses and, with a billion tokens issued in the Asia-Pacific region up to March this year and merchants seeing an increase in authorisation of about US$2 billion, the potential seems unlimited.
VTS operates by substituting a unique digital identifier, known as a token, for the traditional plastic credit or debit card, with its 16-digit primary account number (PAN). The token serves as a set of cryptographic keys to personal data and payment information and is exclusive for dealings with only one merchant, providing a guaranteed level of safety and privacy.
Improved customer experiences
