Visa says that participants in Visa Token Service (VTS) are estimated to process a combined e-commerce volume of $1 trillion, marking a significant opportunity in its efforts to make digital payments more secure.
Visa Token Service hits major milestone of $1 trillion
In 2019, despite a shortened holiday shopping season, consumer spending was up 19.7% from 2018, with online shoppers spending a record $9.4 billion on Cyber Monday alone. To that end, consumers spent $125.6 billion online from November 1 to December 19, with more than a third of that spending happening on smartphones. Beyond the meteoric rise of digital shopping, tokenization technology is also on the rise with increasing adoption among merchants and retailers.
While the high numbers can be attributed to several factors, one thing remains clear: the retail industry and consumer behaviour continue to be transformed by technology. By next year, there will be 2.1 billion digital buyers worldwide, up from 1.66 billion in 2016, and 69% of US consumers store a card-on-file or have a recurring billing set up with their most trusted retailers. For those who don’t store their card, consumers can click to pay with their Visa card where they see a click to pay button and where Visa is accepted, skip guest checkout and bypass form fields and passwords with select US retailers across the web.
Click to pay with Visa
Starting January 21, active Visa Checkout merchants in the US will transition to a new, secure online shopping experience for card payments across web and mobile sites, mobile apps and connected devices. Consumers can leverage the click to pay experience when using their Visa card to make a purchase wherever they see a click to pay button where Visa is accepted.
“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. “This is why Visa is committed to the success of the click to pay experience and the added level of security that tokens bring to electronic payments.”
On sites displaying a click to pay button, consumers that have enabled their card will no longer have to enter a 16-digit primary account number, look up passwords or fill out long forms to make a purchase. Consumers paying with their Visa card where they see a click to pay button, will also be able to pay with confidence knowing Visa will be using advanced technology and authentication methods, including device binding and biometrics to protect transactions. The click to pay experience is also interoperable with the EMVCo tokenization specification and with the 3-D Secure specification to bring more of today’s most advanced security methods to emerging and existing digital payments channels.
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