The world’s largest card network commercially debuted their Visa Token Service in October, 2014 coinciding with the launch of Apple Pay. The service provisions issuers with a token that can be used in place of the card’s primary account number. The token is then transmitted to merchants via Apple Pay for processing for both in-store and in-app purchases. In February Visa announced plans to expand their token service beyond use in Apple Pay to all Visa Checkout transactions, as well as for online transactions with larger, participating merchants that are completed when using a Visa card directly.
The implication of this announcement is that many more mobile wallets and payment services may start using VTS in the not-too-distant future. Visa also expects larger eCommerce merchants to deploy VTS and is already in talks with major online merchants to make tokenization updates to stored credit card data.