Global: Visa Leverages Generative AI to Advance Tokenisation

At Money 20/20 Europe, Mehret Habteab, Senior Vice President of Product and Solutions at Visa Europe, announced that Visa has generated $40 billion in incremental e-commerce revenue globally since issuing over 10 billion tokens since 2014.

Discussing their progress in tokenisation, Habteab told Finextra, “Not only is it boosting sales conversion for merchants, but it’s also providing consumers with convenient and secure payment experiences.”

Visa reported that over 40% of its transactions in Europe are now processed via tokens. Speaking in Amsterdam, Habteab revealed that Visa is exploring the integration of generative AI. “Generative AI combined with tokens has the potential to transform the consumer experience even before they reach the checkout stage,” she said.

However, Habteab emphasized the importance of consumer trust in data sharing. “Consumers need to be in controlled environments and have trust and confidence in order to participate. Our focus is on building a secure foundation using token technology to protect the data shared with merchants, similar to how we handle payment data.”

She provided an example from Denmark, where tokens are used at tolls. Tokenisation links payment credentials to driver number plates, reducing queues and congestion. “Who would have known that updating payment credentials could ease serious congestion and frustration for motorists and improve the public transport network?” Habteab remarked.

Looking ahead, Visa aims to ensure that both merchants and consumers can fully benefit from tokenisation. “There are still many transactions that could be more secure, frictionless, and convenient for consumers,” Habteab concluded.