Visa's Tokenization Service Fueling Asia-Pacific Payments Boom

Visa reported a significant increase in its Asia-Pacific token service, surpassing 1 billion tokens and driving over $2 billion in revenue in 2023. Visa Token Service (VST) bridges traditional banking and digital payment services, providing secure tokens that replace sensitive card numbers. This has facilitated cross-border payments, reducing friction for travelers who prefer cashless transactions. As travel rebounds post-pandemic, the demand for low-fee and seamless international payment options continues to rise, with Visa anticipating further growth in tokenization and personalized consumer experiences.

Visa Token Service Propels Asia-Pacific Payments Growth

NEW YORK, March 26, 2023 — Visa Inc. announced today that its payment services in the Asia-Pacific region have processed over 1 billion tokens, generating an estimated market uplift of more than $2 billion in the past year alone.

The Visa Token Service (VST), launched in 2014, bridges the gap between traditional banking account information and digital payment platforms such as Google Pay and Apple Pay. VST replaces the 16-digit primary account number (PAN) with a secure numeric token, protecting consumers' financial details and privacy.

"Tokens are paving the way for the future of commerce," asserted T. R. Ramachandran, Head of Products and Solutions, Asia-Pacific, Visa. "Visa continues to innovate with tokenized payment credentials, unlocking new and personalized experiences for consumers."

Operating on VisaNet, the company's proprietary global payments network, VST can handle over 56,000 transactions per second. This high-speed infrastructure facilitates seamless cross-border payments and international travel, significantly reducing friction points for consumers.

A recent Visa study revealed that 97% of travelers to the Asia-Pacific region prefer non-cash payment options, with an average spending of $2,525 per trip in 2023. The tokenization of traditional assets into digital currencies and payment intermediaries has surged in the wake of the COVID-19 pandemic.

As travel rebounds and consumers seek international payment methods with lower fees and less hassle, the demand for tokenized payments has grown rapidly.

"We encourage more merchants to adopt tokenized payments, as this technology can enhance both their revenue and profitability," said Previn Pillay, Head of Merchant Sales and Acquiring, Asia Pacific, Visa.

Visa's VST has enabled a burgeoning ecosystem of partners and solutions that leverage tokenized payments. These include mobile wallets, loyalty programs, and digital banking platforms, providing consumers with a wide range of convenient and secure payment options.

"The possibilities are endless with tokenized payment credentials," added Ramachandran. "We're working closely with our partners to unlock the full potential of this technology and deliver greater value to the entire payments landscape."

The adoption of tokenized payments in the Asia-Pacific region is expected to continue growing rapidly in the years ahead, driven by the region's burgeoning digital economy and the increasing demand for convenient and secure payment experiences.