Adyen, the global financial technology platform for enterprise businesses, has reached a significant milestone by issuing over two billion active network tokens. This achievement highlights Adyen’s commitment to enabling businesses to adopt the innovative practice of network tokenization, which converts regular card numbers into secure non-sensitive tokens.
While security has always been a top priority for businesses, Adyen has proven that this no longer needs to come at the expense of the customer experience. Through network tokenization, businesses have witnessed an average 3% increase in authorization rates, resulting in a substantial uplift in revenue every month. This represents a multi-million dollar boost in earnings.
One of the key advantages of network tokens is their cost efficiency compared to PAN (Primary Account Number) card payments. By reducing processing costs and improving transaction approval rates, businesses can increase revenue while keeping expenses in check. This is particularly valuable for subscription-based or digital companies that offer customers convenient features like saving card details, making online shopping more seamless than ever.
The surge in digital payments and e-commerce in recent years, compounded by the impact of the Covid-19 pandemic, has given rise to a significant increase in payments fraud. Adyen’s research has revealed that 39% of businesses have reported a rise in fraud attempts in the past year, while only 60% have effective fraud prevention systems in place. Network tokenization serves as a crucial solution to combatting this growing problem, enabling secure and seamless online payments.
Trevor Nies, Global Head of Digital at Adyen, emphasized the power of network tokenization, noting its ability to enhance both customer security and authorization rates, ultimately leading to increased revenue for businesses. Adyen’s technology supports the major card schemes, allowing more companies to recognize the potential of network tokens.
While network tokenization is an emerging technology, not all issuers currently support it. To address this challenge, Adyen offers network token optimization, which utilizes machine learning to determine the best approach between a network token or PAN payment to boost authorization rates.
Adyen continues to spearhead the adoption of network tokenization, empowering businesses to protect their customers’ data while optimizing their revenue through secure and seamless online payments. With this groundbreaking technology, Adyen is revolutionizing the future of financial transactions.
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