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Visa's Tokenization Technology Prevents $650M in Fraud, Generates $40B in Revenue

Through tokenization Visa prevented businesses from losing $650 million to fraud in the last year while generating over $40 billion in incremental e-commerce revenue for businesses globally.


Through tokenization Visa prevented businesses from losing $650 million to fraud in the last year while generating over $40 billion in incremental e-commerce revenue for businesses globally.
Credit: Foretoken Media 2024

ABUJA, NG – Visa announced that its tokenization technology has prevented businesses from losing $650 million to fraud in the last year. This technology also generated over $40 billion in incremental e-commerce revenue for businesses globally. Since its launch in 2014, Visa has issued more than 10 billion tokens. The company noted,


“Over the last 10 years, Visa has enhanced security across the payment ecosystem through tokenization – a technology that replaces sensitive personal data with a cryptographic key that conceals sensitive payment data.”

Visa's Tokenization Technology Prevents $650 Million in Fraud


Visa's tokenization technology is designed to be embedded into any device, making digital payments more secure while being virtually useless to scammers. Currently, 29 percent of all transactions processed by Visa use tokens, reflecting their widespread adoption and the trust consumers place in this secure payment method.


According to Visa, this technology has led to a six-basis point increase in payment approval rates globally. Overall, tokenization can reduce the fraud rate by up to 60 percent, providing businesses with more successful transactions and offering peace of mind to consumers and merchants of all sizes. Jack Forestell, Chief Product Officer at Visa, stated,


“Today’s milestone represents the impact that tokenization has had on the entire payments ecosystem since we introduced the technology 10 years ago”.

A recent Visa survey revealed that less than one-third of consumers globally feel in control of their data, and only slightly more than one-third fully understand how their data is used. Visa believes that tokenization can unlock a new era of personalization and security—one where consumers control their data and approve when and where it can be shared for a more personalized experience.


Global Rise in Fraud and the Importance of Tokenization


Globally, fraud cases have been on the rise, especially with the boom in electronic payments. In Nigeria, over N59 billion has been lost to fraud in the last five years. Over 80,000 Nigerian bank customers were defrauded in 2023, highlighting the severity of the problem. Visa's tokenization technology offers a critical solution to mitigate such fraud, emphasizing its role in protecting consumers and businesses worldwide.


Visa's tokenization technology has proven to be a significant tool in enhancing payment security, reducing fraud, and boosting e-commerce revenue. As digital payments continue to grow, the adoption of such technologies will be crucial in maintaining trust and security in the financial ecosystem.


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