Spreedly, the provider of a secure, agnostic, and flexible platform that welcomes all payments participants, today announced a new initiative with Visa.
The organizations have launched a program to foster and grow the adoption of network tokenization via Spreedly’s Payments Orchestration solution throughout Latin America. The joint work will kick off in various countries including a project in Argentina, and soon expand into other markets across the region.
When stored credit and debit cards expire or are out of date, they can’t be used to process transactions. This can have major revenue and customer experience impacts for merchants that store card information for subscriptions or ongoing purchases. Network tokenization addresses this challenge — protecting sensitive data, regardless of card brand or payment type and ensuring that card credentials are updated seamlessly and securely when expired, which results in reduced fraud and a boost in overall success rates. In addition, network tokens provide great convenience for consumers by eliminating the hassle of having to manually enter their card information time and time again.
“With Latin America being one of the fastest growing and most innovative regions for e-commerce, the need for a seamless and secure digital payment experience becomes crucial,” said Ralph Koker, vice president of digital solutions for Visa Latin America & the Caribbean. “Tokenization remains one of the most successful ways that Visa uses to fight fraud by removing sensitive payment information and helping increase approval rates. Today, more than half of Visa’s payment credentials in Latin America and the Caribbean are token ready, giving consumers added peace of mind when buying online or via their favorite mobile wallets.”
“This partnership builds on the foundation of customers that have already adopted Spreedly throughout Latin America as well as our mutual prospects in the region,” explained Justin Benson, CEO of Spreedly. “The complexity of transacting in Latin America can be daunting. As merchants and platforms look to scale across the region, it’s vital that they are able to adapt their strategy to achieve the highest possible success rates. Spreedly supports network tokenization by provisioning evergreen network tokens from the major card networks, like Visa, that are compatible with any payment service provider. That gives our customers and prospects incredible flexibility to align their payments strategy with their business strategy. We are all very excited to be partnering with Visa to serve this high-growth market.”
Spreedly connects directly to major card network tokenization services, providing a network token to be stored in Spreedly’s vault. The card networks, aware of any updates being made to account credentials, push those updates to Spreedly in real time, ensuring payment credentials are always up-to-date. The network token is stored alongside primary account numbers (PAN) in Spreedly’s vault for transacting with any combination of supported gateways and acquiring banks.