TL;DR: Adyen, the global financial technology platform, achieves a significant milestone by issuing over two billion active network tokens. This advancement underscores Adyen’s commitment to driving innovation in network tokenization, a process that transforms standard card numbers into secure, non-sensitive tokens. This technology not only bolsters security but also leads to a remarkable increase in authorization rates, translating to substantial revenue growth for businesses.
Adyen, the leading global financial technology platform, has achieved a significant milestone by issuing over two billion active network tokens. This achievement highlights Adyen’s dedication to advancing network tokenization, a process that converts standard card numbers into secure, non-sensitive tokens.
Enhancing Security Without Compromising Customer Experience
Security in financial transactions remains a paramount concern for businesses. The adoption of network tokenization enables a heightened level of security without sacrificing the customer experience. Businesses leveraging this technology have witnessed an average of a 3% increase in authorization rates, resulting in a substantial surge in monthly revenue, measured in millions.
Cost-Efficiency and Increased Authorization Rates
By utilizing network tokens, businesses not only enhance security but also reduce processing costs compared to traditional PAN card payments. This leads to a dual benefit of cost efficiency and increased transaction approval rates, resulting in a significant boost in revenue. This shift is particularly transformative for subscription and digital businesses that offer features like “save card details,” simplifying the online shopping experience for customers.
Addressing the Rise of Payments Fraud
The surge in digital payments and e-commerce, exacerbated by the Covid-19 pandemic, has given rise to an alarming increase in payments fraud. Adyen’s research reveals that 39% of businesses reported a rise in fraud attempts in the past year, with only 60% having effective fraud prevention systems in place. Network tokenization emerges as a crucial solution in creating a future of secure and seamless online payments.
Adyen’s Commitment to Innovation
Trevor Nies, Global Head of Digital at Adyen, emphasizes the power of network tokenization, stating, “It brings the two-fold benefit of increasing customer security, while increasing authorization rates, and therefore revenue for businesses.”
Advancing Technology with Network Token Optimization
While network tokenization is an evolving technology and not universally supported by all issuers, Adyen addresses this challenge by offering network token optimization. This employs machine learning to determine the optimal use of a network token or PAN payment, resulting in an additional 1% increase in authorization rates for businesses.
Adyen’s achievement of issuing over two billion active network tokens represents a significant stride towards revolutionizing payment security and revenue generation for businesses globally. This milestone underscores their dedication to advancing financial technology and driving innovation in the industry.