Adyen, the world-renown financial technology platform of choice for leading enterprise businesses, has now issued over two billion active network tokens. This milestone shows that Adyen is paving the way for businesses to embrace the innovation of network tokenisation which converts regular card numbers into secure non-sensitive tokens.
How impactful has network tokenisation been to date?
Security remains a top priority for businesses, however this no longer needs to come at the expense of the customer experience. Through network tokenisation, businesses have seen an average of 3% uplift in authorisation rates equating to a multi-million dollar increase in revenue every month. Since network tokens are less expensive to process than a PAN card payment, businesses can cut costs, while increasing transaction approval rates and revenue.
This is especially transformative for subscription or digital businesses that offer clients “save card details” features making it easier to shop online. The rapid growth in e-commerce in recent years, accelerated by Covid-19, has resulted in a striking rise of payments fraud.
Adyen’s recent research reveals that 39% of global businesses report an increase in fraud attempts over the last 12 months, while just 60% have effective fraud systems in place. With payments fraud becoming a critical challenge to business across all industries, network tokenisation is key to creating a future of secure, and seamless online payments.
How is Adyen pioneering the technology?
“Network tokenisation is a powerful tool. It brings the two-fold benefit of increasing customer security, while increasing authorisation rates, and therefore revenue for businesses. With Adyen’s tech, which supports the major card schemes, we are seeing that more businesses realise the potential in network tokens,” says Trevor Nies, Global Head of Digital at Adyen.
Network tokenisation is an emerging technology and as such not all issuers currently support it. To help solve this challenge Adyen offers its innovative network token optimisation which uses machine learning to choose between a network token or PAN payment to boost authorisation rates. This drives an additional 1% uplift in authorisation rates for businesses.
To find out more, read their blog on network tokenisation.
