Why tokens are key to future proofing your payments

Today’s customers want to transact easily and confidently. They want to buy on whichever channel or device that’s most convenient at any given time, without interruption.

Tokens make that seamless experience possible. For example, the Cloud Token Framework allows an eCommerce or card-on-file token to be provisioned to the consumer’s account and then to be bound across multiple trusted devices.

This enables digital payment security and consumer experience by combining consumer identity and verification (ID&V) with device intelligence. By linking the consumer, cardholder, and their associated devices, tokenization can help better manage risk and help prevent takeover fraud.

With tokenization, customers are less likely to experience frustrations that can prevent them from buying, such as:

• Failed payments. Network tokens allow credentials to be updated when cards expire, thus reducing the chances of failed payments.
• False declines. Tokenized credentials can also drive higher authorization rates and thus reduce declines for legitimate purchases.
• Inconsistencies. Whether it’s having to manually re-enter payment information or re-submit authentication when moving between mobile, web, and app, tokenization reduces inconsistencies that damage the customer experience.
• Account takeovers. Tokenized credentials have no value for scammers, as there’s no personal data attached. That can help prevent disputes and fraudulent transactions.
   

Tokenization is also the foundation of seamless shopping experiences such as one-click checkout and biometric checkout and can unlock new revenue opportunities such as subscription payments and loyalty.

By securely managing customer data and leveraging a 360-degree view of buying behavior, you can build long-term relationships and make loyalty and rewards opportunities part of every online, mobile, and in-store transaction.

Serving customers across multiple channels, networks, and partners can be complex and time-consuming. With network, brand, and card-agnostic token management, you don’t need to worry about developing the infrastructure to tokenize credentials across different card types and networks.

Instead, Visa’s Token Management Service can ease the technical burden of managing isolated tokens across gateways and acquirers. Other benefits include:

• Unified token vault. Designed to reduce the complexity of managing tokens across networks, gateways, and acquirers, the vault provides a single point of integration for all tokens.
• Self-service. Give customers the ability to update their own data and reduce operational overhead. Tokens, which are device-specific once provisioned, will update automatically everywhere.
• Flexibility and compliance. Tokens give you the flexibility to scale across geographies, channels, and payment types so that you can pursue growth without borders while staying compliant with local regulations.
   

And coming soon: support for passkeys and biometrics. Payment experiences that blend tokenization with fingerprint, facial recognition, or other biometrics are ideal, as they provide authentication and security in a user-friendly package.

Powering frictionless, secure payment experiences with trusted tokenization technology isn’t only about driving higher authorization rates and minimizing fraud. It’s also about future proofing payments so that you can adapt quickly to shifting behaviors.

As in-home connected devices, in-car commerce, and AI agents become more prevalent, tokens are the backbone for emerging payments innovations, such as:

• Data tokens. Users will have greater control over how, where, when, and by whom their data is used; they can shape their own experiences across brands, platforms, and channels.
• AI-enriched personalization. Since tokens don’t reveal sensitive data, AI can personalize experiences without sacrificing privacy or security. For instance, it could recommend the best payment method based on the context of the transaction and user preferences, such as using the card that maximizes loyalty points.
• Internet of Things. Across smart home systems, personal trackers, and connected appliances, devices will increasingly perform actions, such as payments, on behalf of users. Tokens enable everyday devices to make secure purchases, with the user’s consent but without their direct involvement.
• In-car commerce. Imagine driving up to a gas station and your car knows which pump you’re at—and pays automatically once you fill up. In-car commerce is becoming a reality thanks to Visa’s partnership with Sheeva.AI. When a customer pays via their infotainment screen, tokenization makes it secure and simple. Just pay and go, no swipe, tap, or ZIP Code™ needed.
   

As tokenization becomes industry standard, there’s so much more innovation to come. The vision is safer, more convenient, and more personalized commerce for both consumers and merchants. Every token makes that vision a reality.

Ready to implement next-generation token solutions for your business? Connect with our team to learn how Visa’s Token Management Service is the backbone for the future of payments.