Visa has revealed that its payment services in the Asia-Pacific region have successfully processed over 1 billion tokens, generating a market uplift of over $2 billion last year. The Visa Token Service (VST), which was launched in 2014, acts as a bridge between traditional banking and digital payment services like Google Pay and Apple Pay.
VST replaces the conventional 16-digit credit or debit card number used by consumers with a secure numeric token. This enables consumers to share their financial information without compromising their personal details or banking information. VST operates on VisaNet, the company’s exclusive network, which has the capacity to handle more than 56,000 transaction messages per second.
Tokenized payment methods, such as VST, are particularly useful for cross-border payments and international travel. The process of exchanging cash or conducting wire transfers across different currencies often comes with numerous complications. However, by utilizing tokenized assets like cryptocurrencies or payment services like VST, many of these obstacles can be avoided.
A recent study conducted by Visa found that 97% of travelers in the Asia-Pacific region prefer alternative payment methods over cash. In 2023, this preference resulted in an average expenditure of $2,525 per trip.
The tokenization of traditional assets into digital currencies and payment facilitators has experienced significant growth in the aftermath of the COVID-19 pandemic. As global travel begins to recover, consumers increasingly prioritize international payment methods with low fees and minimal obstacles 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, further encouraged more merchants to adopt tokenized payments as this technology can directly impact their financial performance.
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