NYSE-listed payments provider Paysafe is deepening its collaboration with Visa, integrating the latter’s network tokenization service. This tech update aims to replace traditional card numbers with secure tokens, enhancing the safeguard against fraud.
The tokens are designed to automatically update expired card details, which is expected to decrease the number of declined transactions and help maintain active subscriptions without interruption.
With the integration, merchants using Paysafe’s platform can now facilitate various types of transactions including payments and refunds more securely across Europe, thanks to Visa’s network tokens. These tokens are intended to be stored and transmitted securely, potentially reducing the risks associated with data breaches and interception attacks.
The service is accessible through Paysafe’s API, indicating an effort to simplify the adoption process for merchants and maintain a straightforward user experience for customers engaging in electronic transactions.
Daniel Fagan, SVP Product, Merchant Solutions, at Paysafe, commented: “As eCommerce continues to grow and transactions increasingly take place online, offering consumers a smooth and secure payment experience is key to customer retention. We are proud to work with Visa to provide this value-added network tokenisation service to our merchants, integrating an extra layer of protection for their customers and significantly enhancing their payment journey.”
Mehret Habteab, SVP Product & Solutions Europe at Visa added: “Visa Network Tokens help deliver a compelling digital payments experience that can help reduce fraud and increase authorisation rates by 5%. We are excited to collaborate with Paysafe in Europe, to allow people and businesses to benefit from this easier and more secure way to pay.”
Earlier in September, Paysafe announced that it will no longer facilitate euro-denominated transfers to and from Binance.
The decision by the London-based payments firm came amidst increased regulatory scrutiny on Binance, with a focus on combating money laundering activities.
Paysafe had been also Binance’s banking partner in the UK, facilitating transactions through the Faster Payments network. The UK Financial Conduct Authority (FCA) raised concerns over Binance’s partnership with Paysafe as it gives the exchange access to the extensive retail payments network. At the time, banks such as Barclays had withdrawn their support to the exchange, resulting in the suspension of banking services.
Binance’s saga also comes at a time when leading card companies, Mastercard and Visa, have been reassessing their association with the crypto giant. This reconsideration follows intensifying scrutiny from US regulatory bodies. Specifically, Visa had already halted issuing new co-branded cards with Binance in Europe since July.
