Visa’s Token Service (VTS) contributed to the growth of digital payments in Latin America and the Caribbean, with over $3.5 billion in payment volume expected by 2025, according to a report published by the company.
This milestone acknowledges the growing relevance of tokenization in digital commerce and aims to improve security and efficiency in both physical and online transactions.
The impact of tokenization
In its report, Visa emphasized that the token technology-fueled transactions within the region exceeded the $1 billion transaction mark.
This success indicates how tokens bolster transaction security and speed while building consumer trust in the online shopping experience.
The Visa team says in the statement: “Tokens are increasingly used to make digital transactions more secure, seamless and efficient, and this result reinforces this trend.”
Tokenization replaces sensitive personal data with a key or equivalent cryptographic value, disguising payment information and making it more secure.
It is seen as an important step in establishing a strong and agile digital economy.
Romina Seltzer, Head of Products for Visa Latin America and the Caribbean, said about this: “This milestone is just the first step in our strong commitment to improving the payment experience for consumers and merchants in the growing ecosystem of e-commerce.”
E-commerce growth at an accelerated rate
That behaviour change, as Seltzer said, is a part of the protection Visa tokens provide but also serves as a construction project for the future of commerce.
“The tokens are not only protecting online payment transactions but will also help enable future commerce,” she said.
Alongside its partner, Visa stated that is dedicated to accelerating the adoption of tokenization technology.
This will allow the company to achieve the full potential of these innovations to empower businesses and consumers to flourish within a dynamic digital marketplace.
According to the report, this pattern will persist in 2025 for the Latin America and Caribbean tokenized transactions.
Visa says that most issuers in the region now back network tokens, and that nearly 40 certified token service providers are prepared to roll out Visa Token Service capabilities.
This infrastructure will help improve the effectiveness and security of e-payments, thus more accessible to a wider audience of consumers and businesses.
Addressing security concerns
Alarming security challenges have come with the increasing prevalence of digital payments as well. Given the major risks cybersecurity threats pose to consumers and merchants, strong security measures are necessary.
This is where tokenization comes into play to mitigate these risks by minimizing sensitive data exposure during transactions.
Using tokens instead of sensitive payment information dramatically reduces the risk of a data breach. This boosts consumer confidence, leading to increased internet shopping and broader market opportunities for local firms.
Visa’s recent announcement marked a significant shift in payment processing, particularly in Latin America.
As e-commerce continues to increase, it’s crucial to have secure and trustworthy payment solutions.
To secure a digital economy for everybody, payment systems must innovate and strengthen existing capabilities, such as tokenization, which is a top goal for Visa.
Visa is proud to play a leading role in developing a more secure digital economy.
As the world digitizes, the successful Visa Token Service could serve as a model for future Fintech developments, demonstrating that security and ease can coexist.
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