Taipei, Taiwan, October
19, 2018- 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.