Four years ago, the pandemic started giving wings to contactless payments.
Now, as you can see from the financial results, Something like master Card and visathe payment method became popular.
Data from PYMNTS Intelligence found that more than half of consumers surveyed earlier this year still said they were favorable. use physical card In-store settings. Contactless tap to pay feature it is built By introducing these cards, we were able to change what happens when you use a card at the register or in the aisle.
Both Visa and Mastercard executives said in their respective conference calls that contactless options are be preferable means of transaction In a brick-and-mortar setting.
Visa CEO Ryan McInerney Said that “as We're thinking about Visa growth. Tap-to-pay and e-commerce are key drivers of the digitalization of payments. Tap-to-pay increased this quarter Five Compared to last year, 79% of in-person transactions worldwide increased by percentage points. ”
mastercard chief financial officer Sachin Mehra At his company's financial results conference, he said, “The growth of card presents helped.'' to some extent Contactless technology has become increasingly popular, with approximately 67% of all in-person purchase transactions now being contactless. ”
He said MasterCard's card growth rate in the most recent period was 8% compared to the same period last year, so the actual number of cards sold was higher than that.
Tokenization begins
Tokenization represents another growth area for payment networks, a change that protects users' card-specific data and streamlines commerce itself. The practice of tokenization replaces your primary 16-digit account number (PAN) with a randomly generated 16-digit sequence. Ciphertext generated per transaction.token themselves It is usable and interoperable between all parties in the transaction chain.
For businesses, There is Benefits of keeping sensitive data away from your systemsWhich That data is difficult to retrieve in the event of a breach. Tokenization also improves site checkout experience, As approval rates improve.friction reducedCustomers also do not have to re-enter their card details when choosing to transact on the site.
PYMNTS Intelligence found that by dynamically updating card-on-file information with network tokens, merchants can mitigate the impact of the 35% of customers who leave a merchant after a transaction. payment failed. Visa's own data shows that the token improves authentication by an average of 2.1%.
Commenting on Visa's earnings call, it was revealed that the company has issued 9.5 billion tokens globally, and has surpassed the milestone of 1 billion tokens issued in the Asia-Pacific region alone. Mastercard's latest earnings data showed: In the most recent quarter, Tokenized transactions increased by more than 50% year over year and accounted for 25% of transactions across the Mastercard network.