Visa unveiled its new technology allowing retailers to access more information about customers' preferences based on their shopping history.
The payment giant will use "tokens" as an additional security between the customer's financial information and a merchant.
Visa to Release Token Technology to Share Customer Data
According to Visa, the company will be sharing various consumer data such as past transactions, frequently bought categories, and more. All of this information will be shared with partner retailers using the token.
The company assured that customers will be asked for consent before their data is shared with retailers. "It's almost entirely blind to almost all consumers," Visa Chief Executive Officer Ryan McInerney said in an interview
Sharing of shopping data is one of the in-demand strategies in e-commerce today. Retailers are partnering with companies that could share customer data for better product placements and boosted revenue.
Visa Promises Better Shopping Experiences
Visa has been utilizing AI to tailor shopping experiences. The company also handles massive amounts of data from merchants and customers from their daily transactions.
In an interview, McInerney claimed that the new token technology will provide better payment experiences for consumers. The authorized data sharing will be used to power and train AI models.
However, consumer advocates and lawmakers have raised concerns about data privacy and security. Visa CEO argued that there has been no complaint about the tokens as consumers will be presented an option through the bank app, allowing them to opt out of accessing their information.
The payment company is also planning to introduce a payment passkey using facial recognition. The new technology aims to speed up transactions and minimize hassle for customers as they will utilize the same built-in facial recognition on mobile devices.
Related Article : Stripe Opens Apple Pay Later Support by Default on Merchants
