Need to Know
- Visa reaches a milestone of $1 trillion in sales with new Visa Token Service.
- The digital payment company has also launched a new click-to-pay checkout service.
- Visa continues to expand into the fintech market, investing in secure transactions and a simplified experience.
- As of 2018, Visa has facilitated over $11 trillion worth of transactions.
Visa’s expansion into fintech is paying off big time. So much so that the credit company has officially hit a major milestone with its Visa Token Service: an estimated $1 trillion in transactions.
It was announced this week that participants in Visa Token Service (VTS) are estimated to process a combined volume of $1 trillion in e-commerce transactions since the service was first introduced in late 2014.
VTS is a technology that replaces sensitive payment information with a unique identifier, or “token”, protecting a user’s private account information.
In 2019, consumer spending was up 19.7% from the year prior, with more than a third of holiday shoppers doing so on a smartphone. As digital shopping continues to rise, so does the need for secure systems. Enter tokenization technology.
“At Visa, one of our primary goals has always been to create the best customer experience possible. As digital transaction volume grows, there has never been more urgency to build increased confidence in the seamlessness and security of online shopping,” says Jack Forestell, Chief Product Officer, Visa.
The credit company’s Visa Checkout service is also set to transition and expand. Later this month, the popular payment method will change into a click-to-pay model, similar to PayPal or Mastercard’s MasterPass. With the new model, when users see and select a click-to-pay button, they won’t be required to enter any other account information to complete their transaction.
Visa’s simplified checkout experience will replace Visa Checkout around the world throughout 2020, starting with the US later this month. The new authentication methods include device binding and biometrics, which are used to protect the user’s transactions.
In recent years, Visa has expanded deeper into the financial technology space and this $1 trillion milestone is evidence that the investment is paying off.
It has already been a big 2020 for Visa. Earlier this week, Visa acquired payment platform Plaid, which will provide significant benefits to the tech company’s developers, financial institutions and consumers.
Visa has also recently partnered with SiriusXM to disrupt the in-car experience. The two brands unveiled their voice-assisted payment system, designed to reduce driver distraction and increase technology inside the car.
Visa is a world leader in digital payments, connecting millions of consumers and businesses every day. As of 2018, Visa is available in over 200 countries in almost 16,000 financial institutions and has facilitated over $11 trillion in transactions.