Spreedly Teams With Visa For Network Tokenization In Latin America

Spreedly, the payment orchestration platform, and Visa have rolled out an initiative to advance and expand the adoption of network tokenization through Spreedly’s Payments Orchestration offering across Latin America, according to a Tuesday (Feb. 9) announcement emailed to PYMNTS.

“Tokenization remains one of the most successful ways that Visa uses to fight fraud by removing sensitive payment information and helping increase approval rates,” Ralph Koker, vice president of Digital Solutions for Visa Latin America and the Caribbean, said in the announcement. “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.”

Expired or out-of-date stored credit cards or debit cards can’t be used to process transactions. This situation can cause significant sales and client experience effects for retailers that keep card information for subscriptions or recurring purchases. However, network tokenization addresses this hurdle, keeping sensitive data safe regardless of card brand or payment type, the announcement stated.

This technology also makes sure that card credentials are revised when expired, which leads to decreased fraud and increased total success rates. Moreover, network tokens relieve consumers of having to type in their card data multiple times, according to the announcement.

“Spreedly supports network tokenization by provisioning evergreen network tokens from the major card networks, like Visa, that are compatible with any payment service provider,” Spreedly CEO Justin Benson said in the announcement. “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 links straight to major card network tokenization services, providing a network token to be kept in Spreedly’s vault. The card networks know of updates made to account credentials, and they provide those revisions to Spreedly in real time, making sure that payment credentials are always current. According to the announcement, the token is kept with primary account numbers (PANs) in Spreedly’s vault for transacting with different blends of supported gateways and acquiring banks.

As PYMNTS previously reported, working with different payment service providers (PSPs) via a payments orchestration layer can be beneficial. Doing so can help companies process transactions at the lowest available cost and get a higher return on investment (ROI) from the gateways that they have already connected.