Tokenization—when cardholder data is encrypted before storage to protect sensitive information—has evolved from a security measure to a strategic enabler of digital commerce. In fact, Visa has issued more than 12 billion tokens, increasing 44% in the last year.1
What began as a simple way to protect credentials has transformed into a foundational technology enabling everything from subscription management to enabling payments for agentic commerce.
Network tokens, such as those issued by card networks like Visa, replace sensitive card data with an alternate credential known as a token. For merchants, acquirers, and financial institutions, adopting network tokens is key to helping unlock higher conversions, lower costs, and reduce churn.
These tokens are designed to be secure and have restrictions regarding their use. Since a token does not contain any personal information, there’s less risk of exposing anything valuable in a data breach.
"Tokens aren’t just about protecting the transaction. They help reduce subscription churn, increase conversions, and reduce fraud—all while laying the foundation for trust in the age of agentic commerce.”
-Nate Morgan, Sr. Director, Payment Security Solutions
In addition to security, network tokens have another superpower: when cardholders receive new cards, their stored credentials can be updated across all merchants automatically. This makes it easier to manage subscriptions and recurring payments, a common pain point for merchants and consumers alike.
Keep in mind that automatic updates are an inherent benefit of network tokens. Proprietary tokens from payment service providers (PSPs) cannot provide updates without additional integrations.
Tokens also help position your payments stack for the future, serving as the backbone for credential management. As we enter the age of agentic commerce, where AI agents make purchases on behalf of consumers, tokenization can help AI agents to conduct transactions autonomously within existing payment infrastructure, while also protecting sensitive data and maintaining trust.
The same network token technology that merchants already depend on for secure e-commerce can be extended to support agentic commerce, allowing these emerging experiences to operate within familiar, proven security frameworks. This continuity not only reinforces trust but also accelerates adoption by minimizing friction for both consumers and businesses. As agentic models scale, tokenization will be critical in maintaining integrity across increasingly complex and autonomous payment flows.
Token Management Service enables seamless shopping, including one-click checkouts, personalized payment options, and automatic account updates. By securely managing customer data across various payment types while offering flexibility of an agnostic solution, it enables merchants to deliver agentic-ready shopping experiences that drive loyalty and growth.
Disclosure: Case studies, comparisons, statistics, research, and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial, or other advice. Visa neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.