Visa introduces token service

Visa has launched Visa Token Service, a technology that has been designed to support payments with mobile devices.

Global payment processor Visa has launched Visa Token Service, a technology that has been designed to support payments with mobile devices using all major mobile platforms.

Visa said that its new technology replaces sensitive payment account information found on plastic cards with a digital account number or “token”. Because “tokens” do not carry a consumer’s payment account details, such as the 16-digit account number, they can be safely stored by online merchants or on mobile devices to facilitate ecommerce and mobile payments.

Visa Token Service will be available to Visa issuing financial institutions across the world, starting with US financial institutions next month, and followed by a phased roll-out overseas beginning in 2015.

Charlie Scharf, CEO of Visa, said: “When you make the payment environment safer, you open up a world of possibilities where commerce can take place in different forms and consumers can shop anywhere, on any device, with confidence.

“Visa Token Service is yet another example of where we have opened up our network to create meaningful solutions in the form of new standards, tools and services that can enable digital payment experiences that are both engaging and secure.”