Global financial technology platform, Adyen has now issued over two billion active network tokens, paving the way for businesses to embrace network tokenisation which converts regular card numbers into secure non-sensitive tokens.

Through network tokenisation, Adyen data shows an average of 3% uplift in authorisation rates, equating to a multi-million dollar increase in revenue every month. Since network tokens are less expensive to process than a PAN card payment, businesses can reduce costs, while increasing transaction approval rates and revenue.

The rapid growth in digital payments and e-commerce in recent years, accelerated further by the pandemic, has resulted in a striking rise of payments fraud. Adyen’s own research finds that almost four in 10 (39%) businesses report an increase in fraud attempts over the last 12 months, while just 60% have effective fraud systems in place. Network tokenisation is key to creating a future of secure and seamless online payments.

“Network tokenisation is a powerful tool. It brings the two-fold benefit of increasing customer security, while increasing authorisation rates, and therefore revenue for businesses. With Adyen’s technology, which supports the major card schemes, we are seeing that more and more businesses realise the potential in network tokens,” Adyen global head of digital, Trevor Nies said.

Network tokenisation is an emerging technology and as such not all issuers currently support it. Adyen offers network token optimisation which uses machine learning to choose between a network token or PAN payment to boost authorisation rates. This drives an additional 1% uplift in authorisation rates for businesses.