Digital payments have exploded in Latin America and the Caribbean

By Leonardo J. Collado, Head & SVP Value Added Services, Visa Latin America & the Caribbean

Latin America’s ecommerce market is experiencing powerful growth and projected to continuing growing annually by 20% until 2025.¹ The rapid shift in consumer behavior is driving new revenue streams for merchants, but also requires new payment strategies to help provide the right customer experience.

In this growing ecommerce landscape, the number of customers storing their payment credentials at merchants has increased significantly, both for automatic recurring payments and for future online purchases at that merchant. These card-on-file (COF) transactions have increased 150% from 2021 to 2022 globally.² Protecting this sensitive payment information, while still delivering a convenient, seamless payment experience, is critical.

The need for network tokens has never been higher

The region has experienced tremendous growth in token penetration and token volume, with token penetration rising from 5.9% in September 2022 to 23% in September 2023.³ This growth is expected to continue as most issuers in the region now support network tokens and at least thirty-eight Token Service Providers in the region are certified with Visa Token Service capabilities. Investing in network tokens can help merchants obtain a significant return-on-investment (ROI).

Mitigate fraud

30% Fraud Reduction with network tokens vs PAN.⁴ Tokens replace traditional card numbers with a digital token that can help reduce the risk of fraud. In addition, device-binding solutions may make card-on- file transactions more secure by binding the network token to a consumer ‘s trusted device.

Improve authorization rates

4.6% authorization rate lift with tokens for CNP transactions.⁵ Across the globe, Visa’s token card-not-present (CNP) transactions have seen a 4.6% lift in authorization rates compared to PAN.⁵ Higher authorization rates and fewer false declines help provide a positive customer experience at checkout.

Deliver seamless commerce experiences

40% of consumers say they won’t return to a merchant if they receive a false positive.⁶ Visa network tokens can easily leverage Visa Value Added Services, such as Visa Digital Credential Updater (VDCU) and Visa Card Enrichment Services (VCES), which can help ensure cardholders’ payment credentials are up to date to maintain payment continuity and improve authorization and provisioning rates.


Token is revolutionizing the Card Not Present (CNP) environment by emulating the card present environment. This transformation is achieved by introducing innovative methods to authenticate cardholders. These methods utilize the existing rails used for authentication for Pays in the Card on File (COF) and Guest Checkout experiences.

We have successfully launched the Cloud Token Framework and Digital Authentication Framework to extend the authentication approach beyond 3D Secure (3DS). Our expectations for Authenticated Token Credentials are set at an elevated level, especially in terms of Fraud and Authorization, as compared to a regular Token Credential. This is a testament to our commitment to enhancing security while providing seamless user experiences.

If you want to learn more about how to leverage network tokens to create innovative payment experiences for your customers, download our full report here.

Contact your Visa Account Executive and learn how we are helping Latin American merchants seize the opportunity to innovate with network tokens.


1. The 2023 Latin America E-commerce blueprint, PCMI, 2023.

2. Based on Visa processed COF transactions Oct 2021 – Oct 2022.

3. VisaNet July 2023 and July 2022 CNP.

4. VisaNet, Oct–Dec 2022. Visa credit and debit global card-not-present transactions for tokenized vs non-tokenized credentials. Auth rate is defined as approved authorizations divided by total authorization attempts based upon first attempt of a unique transaction.

5. Visa Risk Datamart, Global, FY22 Q1–Q4 Token Fraud Rate vs PAN Fraud Rate by PV for merchants with over 1,000 CNP token transactions per month per country. Merchant’s individual results may vary.

6. State of Consumer Attitudes on Ecommerce Fraud & CX 2021, ClearSale.