Visa token service has reached 1 billion tokens offered in the Asia-Pacific market

Visa announced on March 26 that its payment services in the Asia-Pacific region served more than $1 billion, bringing in more than $2 billion to the market last year.

Launched in 2014, the Visa Token Service (VST) acts as a bridge between traditional bank account information and digital payment services such as Google Pay and Apple Pay.

Essentially, VST replaces the traditional 16-digit credit/debit card number used by consumers to make purchases with a secure digital token. This allows consumers to share financial information without exposing their personal details or banking information.

VST is powered by Visanet, the company's proprietary network, and can handle more than 56,000 transaction messages per second, according to company documentation.

One of the most common use cases for tokenized payment methods is cross-border payments and international travel. Exchanging cash or making money transfers across currencies has countless friction points. Using tokenized values ​​like cryptocurrencies or tokenized payment services like VST can eliminate much of the hassle involved in these transactions.

A recent study by Visa found that 97% of travelers to the Asia-Pacific region prefer to pay in cash. In 2023, this averaged $2,525 per trip.

As a result of Covid-19, the tokenization of traditional assets into digital currencies and payment facilitators has grown exponentially. As travel continues to grow in the post-pandemic world, the need for low-cost and misunderstanding global payment methods is becoming a growing factor in how and where consumers shop.

TR Ramachandran, Asia-Pacific head of Visa Products and Solutions, said in a press release that tokens will “pave the way for the future of business.”

“The possibilities for innovation are immense with payment credentials that can unlock new and more personalized consumer experiences beyond physical Visa cards. Together with our partners, we continue to build on the capabilities that modern certificates provide to bring more value to the entire payments ecosystem.

Privin Pillai, head of merchant sales and accruing Asia Pacific, Visa, added that the company “encourages more merchants to accept tokenized payments as this technology has a direct impact on their top and bottom lines.”

Related: Visa, MasterCard could be key drivers for crypto in coming year.