Visa Token Service Hits 1 Billion Tokens in APAC Market

Visa has announced that its payment services in the Asia-Pacific region have reached a major milestone by serving over one billion tokens, which resulted in a market uplift of more than $2 billion last year. The Visa Token Service (VST) was introduced in 2014 as a way to connect traditional banking information with digital payment services like Google Pay and Apple Pay. Instead of using the typical 16-digit credit or debit card number, VST replaces it with a secure numeric token, allowing consumers to share their financial information without exposing their private details or banking information. The VST operates on VisaNet, the company’s own network capable of processing over 56,000 transaction messages per second.

One of the main benefits of tokenized payment methods is its usefulness for cross-border payments and international travel. Traditional methods of exchanging cash or conducting wire transfers across different currencies often come with various obstacles and complexities. By using tokenized assets or payment services like VST, many of these challenges can be avoided, making transactions much smoother. According to a recent Visa study, 97% of travelers in the Asia-Pacific region prefer non-cash payment methods, resulting in an average spend of $2,525 per trip in 2023.

The tokenization of traditional assets into digital currencies and payment facilitators has seen significant growth after the impact of COVID-19. As travel resumes in the post-pandemic world, consumers are seeking international payment methods with low fees and minimal friction when making purchases. TR Ramachandran, Visa’s head of products and solutions for the Asia-Pacific region, stated that tokens are paving the way for the future of commerce and offer immense innovation possibilities for personalized consumer experiences beyond physical Visa cards. Visa continues to enhance these capabilities with its partners to bring more value to the payment ecosystem.

Previn Pillay, Head of Merchant Sales & Acquiring, Asia Pacific, Visa, encourages more merchants to adopt tokenized payments, highlighting the direct impact this technology can have on their top and bottom lines. By embracing tokenized payments, merchants can benefit from the advantages it offers in terms of efficiency, security, and enhanced consumer experiences. This aligns with the growing customer preference for digital payment options, especially in the Asia-Pacific region, where cashless transactions are highly favored. Visa’s achievement of serving over one billion tokens in the region underscores the increasing importance and adoption of tokenized payment methods.