Visa made an announcement on March 26 regarding its successful payment services in the Asia-Pacific region. These services have facilitated over 1 billion tokens and contributed to a market uplift of over $2 billion in the past year.
The Visa Token Service (VST) was launched in 2014 to bridge the gap between traditional banking account information and digital payment services like Google Pay and Apple Pay. It replaces the conventional 16-digit credit/debit card number with a secure numeric token, allowing consumers to share financial information without compromising their personal details or banking information.
VST operates on VisaNet, the company’s exclusive network that can handle more than 56,000 transaction messages per second, according to company documentation.
Tokenized payment methods, like VST, are commonly used for cross-border payments and international travel. These methods provide a solution to the challenges and complexities associated with exchanging cash or conducting wire transfers across different currencies.
A recent study conducted by Visa revealed that 97% of travelers in the Asia-Pacific region prefer non-cash payment methods. In 2023, this preference resulted in an average spend of $2,525 per trip.
The tokenization of traditional assets into digital currencies and payment services has witnessed substantial growth in the aftermath of the COVID-19 pandemic. As travel industry recovers, consumers are increasingly 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, expressed in a press release that tokens are paving the way for the future of commerce. Previn Pillay, head of merchant sales and acquiring for Asia Pacific at Visa, further encouraged more merchants to adopt tokenized payments, emphasizing the positive impact it can have on their financial performance.
In related news, Visa and Mastercard are expected to play a crucial role in driving the adoption and usage of cryptocurrencies in the coming year.