Building on a pilot program that began in 2017, Visa (NYSE: V) announced an expansion of Netflix’s use of the Visa Token Service yesterday, with a key focus of improving card-not-present authorization rates and enabling a more seamless and secure merchant and customer experience globally.
Visa and Netflix are working together to realize the benefit of higher authorization rates resulting from global issuer lifecycle management of Visa tokens. With the Visa Token Service, card details can be replaced with a unique digital identifier used to process payments without exposing the cardholder’s sensitive account information. For those Visa tokens, issuers around the world can push dynamic updates on lost, stolen or expired credentials to enable a frictionless merchant and customer experience. As part of the effort to expand these benefits more broadly to issuers and card-not-present merchants generally, Visa is now working with Netflix and other token participants to measure these improvements and set milestones for industry performance.
“As the Visa Token Service and associated payment frameworks continue to scale, we believe low risk, trusted merchants, like Netflix, can realize authorization approval rates and a customer experience on par with the face-to-face environment. We look forward to our continued work with Visa to consolidate that potential under a broader digital merchant acceptance program and further improve the payment experience for Netflix members globally,” according to Vickie Gonzalez, global head of payments, Netflix.
“We believe tokenization, in association with other enhancements in digital payments, will create the framework for seamless processing and significantly higher authorization rates in eCommerce in the near term,” says TS Anil, global head of payment products and platforms, Visa. “By expanding our partnership with Netflix, Visa is further demonstrating its commitment to making digital commerce easier and more secure.”
Netflix was the first merchant to begin using the Visa Token Service to tokenize its cards-on-file when the companies’ initial pilot began in 2017. Visa also recently announced 20 Visa Token Service acquirer gateway and technology partners who will help scale tokenization around the world. Since the launch of the Visa Token Service in 2014, Visa has added over 60 global token requestors—including mobile and wearable manufacturers, issuer wallets, online merchants, payment service providers and acquirers—from 40 markets onto the token platform. The recent addition of 20 acquirer gateway and technology partners will bring scale globally and support Visa’s commitment to security and convenience of online and mobile payments from both traditional eCommerce as well as card-on-file transactions.
Earlier in August, Visa announced its collaboration with Cherri Tech to enhance online shopping experiences. The first Visa-certified global Token Service Provider in Taiwan and Asia, Cherri Tech's online payment tokenization service leverages Visa Token Service to enhance online payment security.
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About Visa Inc. Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews
