Powering the future of checkout payments
Rapid technological advances have changed the way we spend, manage our money, and live our lives.
Consumers now increasingly expect online experiences to be as secure and seamless as face-to-face, no matter the merchant or device they’re using.
Embracing a fully open data economy offers limitless opportunities for richer, more personalised experiences for consumers and businesses. It reduces barriers to entry for new players, and has the potential to unlock €550 billion in economic value in Europe by 2025.
How will tokenisation shape the future of payments?
One of the newer solutions in the payments space is Click to Pay, developed to bring the convenience of contactless online. Removing the hassle of repeatedly entering card details, Click to Pay has been built with innovative security features such as tokenisation, all helping to safeguard the sensitive data of consumers and businesses.
Token technology, pioneered by Visa, is a key contributor to convenient, seamless, and safe payments for consumers. Sensitive payment data on its journey from the merchant to the consumer’s bank is replaced with an encrypted token, making the digital payment more secure. Enabling tokens can also reduce the risk of fraud by up to 50%1 because if a token is stolen, it can’t be used by anyone else, including fraudsters.
Token technology can also be embedded into any device. For example, in the not-too-distant future, we envision a driver asking their car to find the nearest café, order them a cappuccino, then enable them to pay using biometrics on the steering wheel.
A token is seen as a high-quality credential – so the more tokens that exist (and are embedded into devices, apps, and wallets), the bigger the pool there are to transact with. The knock-on effect is a stronger network, higher trust among consumers who can enjoy a more seamless and secure way to pay. It also means revenue for businesses who can benefit from better user experiences, lower transaction costs, reduced fraud, and increased authorisation rates.
Remaining competitive in an increasingly online marketplace
We need only look at the adoption of contactless to see what the future might hold with four out of five payments now made in stores in Europe being contactless2. Merchants and businesses that embrace a variety of payment options will remain competitive in an increasingly online marketplace. Businesses of all sizes can make use of solutions, keeping up with customer needs and the evolution of payment space by making payments more convenient, secure, and efficient.
As experiences and user journeys become more digital, this is an increasingly important area for investment and innovation. Given the rapid growth of easy-to-use payment methods like wallets – particularly with younger generations – the ecosystem must consider their current trajectory and ensure that we are equipped to offer the type of solutions that are likely to be demanded in the future.
With eCommerce usage surging to such an extent that it’s now on equal footing with face-to-face spend across Europe3, we remain dedicated to providing innovative digital solutions that meet the evolving needs of consumers and businesses. As technologies continue to evolve, we can expect payments solutions to become more integrated, adaptive, and personalised, further enhancing the way we conduct financial transactions.
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1. VisaNet, Europe, token vs. non-token card not present fraud, March 2022
2. VisaNet Data, March 2021
3. Small Business Survey, 2019 *197 businesses across the UK were surveyed