Visa has achieved a significant milestone in its payment services in the Asia-Pacific region, with over 1 billion tokens utilized and a market boost of over $2 billion in the previous year. The Visa Token Service (VST), introduced in 2014, acts as a secure connection between traditional bank accounts and digital payment platforms like Google Pay and Apple Pay.
VST replaces the conventional 16-digit credit or debit card number that consumers use for purchases with a secure numeric token. This enables consumers to share their financial information without exposing their private details or banking data. VST operates on VisaNet, the company’s exclusive network that can handle more than 56,000 transaction messages per second, according to company records.
Tokenized payment methods have become increasingly popular for cross-border payments and international travel. Converting cash or conducting wire transfers across different currencies often involves various complications. However, by using tokenized assets like cryptocurrency or payment services such as VST, many of these transaction hurdles can be avoided.
A recent study by Visa revealed that 97% of travelers in the Asia-Pacific region prefer non-cash payment methods. This preference resulted in an average expenditure of $2,525 per trip in 2023. The tokenization of traditional assets into digital currencies and payment facilitators has experienced significant growth due to the impact of the COVID-19 pandemic. As the world gradually recovers and travel resumes, consumers are increasingly seeking international payment options with low fees and minimal friction when making purchases.
TR Ramachandran, Visa’s head of products and solutions for the Asia-Pacific region, expressed in a press release that tokens are paving the way for the future of commerce. Previn Pillay, head of merchant sales and acquiring for Asia Pacific at Visa, encouraged more merchants to adopt tokenized payments, highlighting the technology’s potential to directly impact their financial performance.
In related news, Visa and Mastercard are expected to play crucial roles in driving the adoption of cryptocurrencies in the upcoming year.