Spreedly, a leading payments orchestration platform, has collaborated with Visa to broaden the adoption of network tokenization. They have teamed up to launch a program to extend the acceptance of “network tokenization” through Spreedly’s Payment Orchestration Solution throughout Latin America. They will initiate a project in Argentina and will then spread into other markets throughout the area.
Why This Is Important
When credit and debit cards have reached their expiration date, they can no longer be used to process transactions. For merchants that depend on storing credit card information for subscription services or repetitive purchases, this can negatively impact their revenue. Not to mention creating a negative impact on the customer experience.
With network tokenization, it seeks to protect sensitive information (despite credit card brand or payment type). It also ensures that credit card information is updated securely and smoothly when it expires. All this contributes to reducing fraud and gives a much-needed push in success rates. Furthermore, network tokens offer the added convenience of eliminating the need for customers to enter their credit card information manually time and time again.
Latin America is clearly becoming one of the fastest-growing and advanced regions in the e-Commerce sphere. Therefore, it is most important that the digital payment experience is as secure and smooth as possible. It is through tokenization that Visa has used to combat fraud by eliminating sensitive payment details and increasing approval rates. Presently, more than 50% of Visa’s payment credentials in the Latin American region are “token ready”. This grants customers in both Latin America and the Caribbean peace, knowing that their purchases online and their use of digital wallets are secure.
As explained by Justin Benson, CEO of Spreedly:
This partnership builds on the foundation of customers that have already adopted Spreedly throughout Latin America as well as our mutual prospects in the region. As merchants and platforms look to scale across the region, it’s vital that they are able to adapt their strategy to achieve the highest possible success rates. Spreedly supports network tokenization by provisioning evergreen network tokens from the major card networks, like Visa, that are compatible with any payment service provider.”
How It Works
The way it works is that Spreedly is able to connect with major credit card tokenization services. This allows a “network token” to be stored within Spreedly’s “vault.” Card networks are able to release updates on account credentials directly to Spreedly in real-time, making sure the payment details are always current. The network token is then stored along with primary account numbers or (PAN) within Spreedly’s vault in order to transact with gateways or acquiring banks.
Tokenization Promotes More Secure Payments
Without question, one of the most monumental threats to businesses today is rampant digital fraud. Tokenization aims to eliminate this possibility before it can even become a threat. With more secure checkout experiences, more customers will shop online with confidence.