The payments orchestration platform Spreedly announced on Tuesday (Sept. 28) that it has issued more than 150,000 new network tokens each day, including more than five million just in the month of August.
The company said these tokens help prevent card-not-present fraud and increase authorization rates. They are part of a larger Spreedly/Visa partnership announced earlier this year to boost network token adoption.
“By converting stored credit card data to secure network tokens, customers get the benefit of higher security, better customer experience and increased authorization success rates — by 2.1% and more,” the company said in the news release. “Spreedly’s network tokens let customers leverage their choice of network token or a secure, vaulted PAN token as Spreedly can store both tokens.”
Spreedly adds that this gives users the flexibility to use whatever method a payment processor accepts. The company’s network tokenization can tokenize upon retention and backfill previously captured card data, providing merchants with the complete benefits of network tokens across all their payments.
“Spreedly prides itself on delivering constant innovation to the entire payments ecosystem,” said CEO Justin Benson. “Our agnostic approach to network tokens is a major advancement for merchants — and that’s proven out by the rapid adoption of network tokens that we’re seeing in the market. Much of this recent activity is supporting our LATAM-based customers, who are seeking ways to scale across the region and evolve payments to ensure the highest success rates possible. We’re excited to be enabling this growth through the use of our technology.”
This news follows Spreedly’s announcement last month that it had seen a 300% year-over-year increase in the number of merchants turning to its service for fraud prevention.
Chief Marketing Officer Randy Guard said at the time that cybercrime costs both merchants and platforms due to chargeback and merchandise losses, along with related fees. “To combat these losses, merchants and platforms increasingly integrate various solutions in order to mitigate different types of fraud,” he added.