EBANX Expands Network Token Offering in Latin America

Payments services firm EBANX is expanding its network token operations in Latin America.

As the company noted in a news release Thursday (Dec. 11), this technology replaces a card’s sensitive primary account number (PAN) with a secure, dynamic token (DPAN), thus protecting cardholder data and allowing for a smoother payment experience.

“In tests conducted across Latin America, EBANX identified a reduction in credit card declines due to fraud and security issues by up to 86%,” the release said.

“After launching operations with the technology in Brazil and Chile, EBANX has expanded payment processing using Network Tokens to Colombia, Peru, and the Dominican Republic.”

The release noted that EBANX now processes more than two million transactions in Colombia per month using network tokens.

The company said its in-house data shows that the average approval rate for payments with network tokens in the country is 10 percentage points higher than for those without the tokens. Eighty-seven percent of the country’s merchants have adopted this solution, EBANX added.

In Peru, EBANX is the only payment service provider using the token across the Visa and Mastercard networks, with 70% of card transactions processed through EBANX in that country using network tokens.

EBANX is making the first implementation of network tokens in the Dominican Republic, where 84% of the digital transactions are made using debit and credit cards.

“With this launch, we are taking another step forward in enabling safer and more efficient online payments in the Caribbean markets,” said Alyson Grosshandler, Director of Country Growth, North LatAm at EBANX. “Through network tokens, merchants in multiple industries, including gaming and online retail, will benefit from higher approval rates and a significant reduction in fraud-related declines.”

Meanwhile, the PYMNTS Intelligence report “The Tokenization Innovation Report: The Future of Security and Personalization” found that 78% of merchants enable network or payment tokens.

Larger merchants are more familiar with tokenization, with 80% of merchants generating $10 million to $50 million in annual revenue saying are “very or extremely familiar” with payment data tokenization solutions.

That’s a greater share than the corresponding 35% of those generating $1 million to $5 million and 14% of those generating under $1 million in annual revenue. Another 97% of payment service providers use network tokens to offer digital wallet payments.

“The growing awareness of tokenization comes as roughly two-thirds of merchants said they had experienced payments fraud; more than three-quarters said they had seen at least some online transactions fail,” PYMNTS wrote last month.

Total tokenized market capitalization could come to $2 trillion by the end of the decade, according to an estimate from McKinsey.