Tag: visa

Visa Europe will be expanding its innovative tokenization service to support cloud-based transactions

Visa Europe is expanding its tokenization service to support cloud-based transactions coming from the mobile payments platforms that banks are using. The organization is responding to growing demand for payment support for mobile devices throughout Europe. Many consumers are beginning to rely on their mobile devices to shop online and in physical stores, which they consider to be more convenient than conventional forms of commerce. They also want to ensure that the services they are using are secure, which is where tokenization comes into play.

Tokenization has helped consumers become more comfortable with the concept of mobile commerce

Tokenization allows mobile payments to be made securely. Through a typical payment system, financial information is transferred digitally, allowing consumers to make payments online. Tokenization replaces this information with digital tokens, which can be used to authenticate transactions. These tokens are unique for every transaction, ensuring that consumer information is kept safe. Visa has become a pioneer in tokenization, which has helped consumers become more confident in the security of mobile commerce.

Half of all Visa transactions expected to come from mobile devices by 2020

The expansion of the Visa Europe Payment Tokenization Service will allow banks and other organizations to take advantage of tokenization. By 2020, Visa Europe predicts that one in five consumers will pay for products using their smartphones and other devices on a daily basis. Mobile will account for 50% of all Visa transactions made by that time, which has highlighted the need for secure services. Security is a top priority for banks, especially as consumers become more mobile-centric.

Embracing tokenization could allow retailers to find more success in mobile shopping

Visa Europe’s tokenization system will allow more merchants to enter into the mobile payments ecosystem. This is good news for retailers, as they can find major success by engaging mobile consumers. If they can provide secure services, they will have a better chance of connecting with consumers and providing them with an enjoyable and safe shopping experience. Visa has managed to improve the mobile commerce space significantly through its tokenization service, which has been praised by retailers and financial institutions.

The credit card company recently purchased a considerable amount of the company ahead of its IPO.

Visa Inc. has now taken a considerable stake in the Square Inc. mobile payments company, through shares purchased ahead of the initial public offering (IPO) at Square, according to a Security and Exchange Commission regulatory filing.

The financial services and credit card giant had purchased 4.19 million Class B shares back in 2011.

Those Class B shares do not trade publicly. That said, Square has revealed in its filing that Visa has the right to translate 3.52 million of those Class Bs into Class A shares. Should Visa choose to take advantage of that option, it would hold a 10 percent share of the mobile payments company. That would be only slightly smaller than the current largest stakeholder, Capital Research and Management Co, which owns a 12.4 percent slice of the company. Capital Research and Management is a massive L.A.-based mutual fund company.

Square has been finding its experience as a publicly offered mobile payments business to be quite challenging.

The company’s IPO was back in November, at $9 per share. During the first day of trading, it saw a rise of 45 percent. However, since that time, it has been gradually slipping downward.

Square offers a plastic “dongle” that attaches to mobile phones and tablets in order to make it possible to accept credit card payments. This makes it possible for small businesses, restaurants, tiny retailers, and sellers at arts and crafts festivals and farmer’s markets the opportunity to receive payments through credit card swipes and mobile technology. The CEO at Square is Jack Dorsey, who is also well known for being the chief exec at Twitter.

Square makes its money by charging a payment processing fee. Before the November 2015 IPO, Square had reported that it experienced $154 million in losses during 2014, on $850 million in revenues.

Mobile payments are an exceptionally rapidly growing business and are arriving in a number of different forms. While some allow mobile devices to be converted into a kind of portable point of sale terminal, others transform a smartphone into a wallet that can be used on the consumer-side.