Improving payment experiences with credential management in Latin America

Imagine navigating the dynamic landscape of online shopping, where digital transactions are the lifeblood of commerce. The surge in online transactions, whether for a boutique in São Paulo or a tech store in Mexico City, brings the inevitable challenge of ensuring that payment credentials are valid and secure right from the start. Validation is the bedrock of credential management, a process where the accuracy and legitimacy of payment details are confirmed.

Visa Account Verification offers a reliable solution that helps ensure accounts are in good standing, prevent incorrect or unauthorized use, and boost approval rates for transactions. In a market where trust is paramount, a strong validation process is the first step toward securing consumer confidence.

Latin American consumers want frictionless payment experiences, whether they're shopping online, in-store, or via mobile. They also want universal acceptance, rewards for loyalty, and diverse payment options. Those demands put pressure on merchants to store payment credentials securely. And merchants should avoid complex checkout screens, which can introduce friction and the risk of cart abandonment.

Token Management Service is a game-changer for better payment experiences. It’s brand-agnostic, offering access to network tokens across major brands and creates a foundation for features like one-click checkout. Recurring payments become hassle-free across multiple channels, and a single, comprehensive view means customers are recognized however they transact, enabling unified commerce.

For example, we’re working with Vindi, a leading Brazilian payment solutions provider specializing in recurring billing, to bring advanced tokenization tools to their clients. It’s helped them enhance payment security, boost acceptance rates, prevent involuntary churn, and ensure seamless payment experiences for their subscribers.

In the world of credential management, authentication is a critical step. It's about ensuring that the person initiating a payment is authorized to use the payment credential involved. Drawing a parallel, this is a similar step as when you are required to authenticate yourself before logging into a specific app or website.

Balancing friction and risk is essential in authentication. Traditional methods like passwords or OTPs might reduce fraud but often add friction. Alternatively, biometric authentication offers a seamless and secure experience, with fraud rates plummeting by 50%.¹ With methods like fingerprint or facial recognition, consumers can effortlessly authenticate payments, enhancing both security and convenience.

In payments, additional layers of control applied to authenticated credentials can also reduce transaction risk by combining issuer authentication with the security of consumer devices. Our goal, therefore, is to securely unite these two worlds: authenticated credentials and device biometrics. The most modern method to achieve this is through Payment Passkeys.

TMS & Payment Passkeys deliver this modern authentication solution. TMS-enabled Cloud Token with Passkeys allows biometric authentication and device binding to secure transactions, providing fraud liability shift to sellers.

The final stage of credential management is lifecycle management, which involves keeping payment credentials up to date to ensure seamless transactions. In Latin America, where consumers are increasingly storing their credentials with merchants, maintaining updated information is key.

Consider this: 65% of consumers worldwide have payment credentials on file with merchants, yet 74% experienced a card change in the past two years and 36% forgot to update their credentials.² This is where Account Updater steps in, simplifying the process of keeping cardholder credentials from major brands up to date.

Credential management in Latin America is more than a technical necessity; it’s a strategic imperative that drives consumer trust and business growth. By mastering validation, storage, authentication, and lifecycle management, merchants can offer secure and seamless payment experiences.

In a region poised for explosive digital commerce growth, getting credential management right is the key to unlocking new opportunities and fostering lasting customer loyalty.

Our LAC team can help improve your payment experience today and maintain high customer expectations.