Visa recently announced that its tokenization technology has reached a new milestone, generating over $40 billion in incremental e-commerce revenue for businesses worldwide and saving $650 million in fraud losses. Since the technology's introduction a decade ago, Visa has issued more than 10 billion tokens.

The Impact of Tokenization Technology

Visa introduced tokenization technology in 2014, aiming to replace sensitive personal data with encrypted keys to secure digital payments and prevent financial fraud. Visa reports that 29% of all its processed transactions now use tokens.

Jack Forestell, Visa's Chief Product Officer, stated, "Today's milestone showcases the impact of tokenization technology on the entire payment ecosystem since we introduced it ten years ago. Tokenization has been a game-changer, ensuring the security of online payments and paving the way for further innovation—from mobile payments to better control over our data in the AI era."

Reports indicate that the use of tokens has increased global payment approval rates by six basis points and reduced fraud rates by up to 60%. Currently, over 8,000 issuing institutions and more than 1.5 million e-commerce merchants globally use Visa tokens daily.

Despite these advancements, many consumers still feel uneasy about data privacy. Visa's survey shows that less than one-third of consumers worldwide feel in control of their data. Visa plans to address this issue with its data tokens, promising greater transparency and control over the use of personal data.

Expanding Influence

Recently, Visa recruited 22 startups from Africa into its fintech accelerator program. This 12-week program aims to provide these startups with guidance, training, networking opportunities, and funding support.

The selected startups offer a range of solutions, from new banking models to social commerce, targeting unique challenges and opportunities within Africa's fintech ecosystem. This diversity reflects Visa's commitment to supporting broad innovation that can drive meaningful change.

The program will culminate in a face-to-face Demo Day, where the startups will showcase their innovations to key stakeholders, investors, and venture capitalists. This event will provide these startups with a platform to gain attention and potentially secure further support for their businesses.