Strategies to help merchants ease payment friction in Europe

Picture this: with network tokenisation, every transaction your customers make is safeguarded by an added layer of security, helping protect sensitive payment information from potential fraud.

As of May 2024, Europe boasts 2B+ network tokens in circulation,¹ backed by more than 99% of issuers.² This wide adoption has led to over 50% of all Visa Europe eCommerce transactions initiating with a Visa Network Token.³ The results speak volumes: a 6% increase in approval rates⁴ and an almost 50% reduction in fraud for PAN-based versus Visa token CNP transactions.⁵

By substituting traditional card details with unique tokens, you ensure that even if intercepted, the data remains useless to fraudsters. This not only boosts security but also keeps payment information up to date, minimising disruptions from expired or outdated details.

In the digital age, data management is more than just a necessity—it's a strategic advantage. By effectively managing customer data, you gain invaluable insights into consumer behaviour, preferences, and purchasing patterns. This allows you to create personalised experiences that resonate on an individual level.

Imagine being able to predict your customers' needs and gaining pre-emptive insights into what they want before they even ask. By utilising data to craft tailored rewards and recommendations, you foster deeper connections and loyalty. This eliminates the need for generic marketing approaches and ensures that every interaction is meaningful and relevant, enhancing customer satisfaction and boosting retention.

Efficiency is key to reducing payment friction. By optimising transaction data, you can significantly enhance approval rates. This involves smart routing, where transactions are directed through the most efficient and cost-effective paths, minimising declines and delays.

Think of it as having a GPS that always finds the quickest and least congested route through a busy city. This not only ensures swift and successful transactions for your customers but also improves your bottom line by reducing failed payment attempts. The result? A smoother, faster checkout process that keeps your customers coming back.

In an era where data breaches and cyber threats are on the rise, protecting payment information is critical. Advanced encryption and tokenisation technologies reduce the burden of compliance and dramatically decrease the risk of data breaches.

By ensuring your customers' payment information is secure, you build a foundation of trust. When customers feel their data is safe, they’re more likely to shop with you, leading to higher conversion rates and repeat business.

The statistics are compelling. Visa has issued 12.6 billion tokens globally, a 44% year-over-year surge.⁶ Tokenised transactions yield approval rates that are 6 percentage points higher and reduce fraud by 30%.⁷ Tokens have become a pivotal platform for enabling innovation, driving higher sales, and fostering a more secure payment ecosystem.

As European merchants, the time to act is now. By embracing network tokenisation, advanced data management, transaction optimisation, and robust payment protection, you can reduce friction and propel your business into the future. The rewards are immense: a seamless, secure, and personalised payment experience that delights customers and drives growth.

At Visa, we’re committed to helping you navigate this new payment frontier. Watch our recent webinar Rethinking the Role of Credentials to see how network tokens can help you fight fraud and boost authorisation rates. Or reach out to our sales team to learn how to unlock your business’s full potential.