Payment processing giant Visa has announced that it will be launching Visa Token Service, a system that will help the money processor improve its systems and give better user experience.
The Visa Token Service (VTS) is estimated to provide an eCommerce value of nearly USD 1 trillion globally in 2020. This service will work in parallel to standing Visa Checkout initially, giving a more simplified experience to customers. The VTS kicks off this month in the U.S., with a global coverage by the end of 2020.
Jack Forestell, the Chief Product Office at Visa said,
At Visa, one of our primary goals has always been to create the best customer experience possible. As digital transaction volume grows, there has never been more urgency to build increased confidence in the seamlessness and security of online shipping. This is why Visa is committed to the success of the click to pay experience and the added level of security that tokens bring to electronic payments.
The Click to Pay is a smart system that will securely connect users to the Visa and banking network. Users who will have opted into the system will not need to enter their 16 digit long card number, input complex passwords or fill out different kinds of online forms when they wish to buy something online.
Instead, the Visa network will be using different authentication methods such as biometrics and device bindings to ensure that there are no frauds and the transactions are authenticated. The data would be written in a token so that actual details are encrypted and not exposed.
Although the Visa Token Service is not blockchain based, it has many similarities. In the past Visa had always shown a keen interest towards the blockchain technology. However, it had been on the cautious side when it came to accepting cryptocurrencies. The technology behind the digital tokens and coins , blockchain, had always been acceptable. Alfred Kelly, the CEO of Visa said a few months back that the payment processor would have to carefully consider on the cryptocurrency role ,
I think there has to be some market that it becomes somewhat like a fiat currency in order for us to be comfortable. If it goes in that direction, we will move in that direction. We want to be in the middle[…] of every payment flow in the world regardless of how it happens or what the currency is behind it. So if we have to go there, we will go there. But right not, it’s more of a commodity than a payment vehicle.
Visa had posted opening for different blockchain experts previously, including a Technical Product Managerwho would report to the Head of Crypto within the Visa’s Fintech Product Group, which indicated that the payment processor was indeed looking into the technology.