Visa Introduces 'Visa Contactless' to Payco

Global payment technology company Visa announced on the 6th that it will support the 'Visa Token Service (VTS)' on the mobile application PAYCO of NHN PAYCO, a simple payment service provider. NHN PAYCO is the first domestic big tech simple payment service provider to introduce this service for domestic merchant payments.

The Visa Token Service, used for Visa contactless payments, is Visa's innovative payment security solution that replaces the 16-digit card number with a virtual digital identifier called a token to process payments. Since it uses a randomly generated and encrypted code instead of the actual card number during payment, it is safe from crimes such as card information leakage. In fact, among more than 5 billion Visa tokens issued worldwide, there has not been a single case of fraudulent use due to information leakage, demonstrating its high security. It can also be used in all digital payment environments such as online, mobile, and in-app, enabling secure payments in various forms and methods including wearable devices and connected cars.

Through this collaboration, Android users who possess the Visa-branded 'PAYCO Point Card' can register the card in the PAYCO app and make contactless payments with their mobile devices at global merchants supporting EMV (Europay, Mastercard, Visa)-based NFC (Near Field Communication) payments without a physical card. In South Korea, mobile contactless payments using PAYCO are available at about 90 major brands. The PAYCO Point Card, launched in 2021, is PAYCO's representative prepaid card, and Visa plans to continue cooperating with PAYCO to expand the cases where Visa Token Service can be applied beyond this product.

Visa launched a mobile wallet service with Visa Token Service applied in 2019 in partnership with Hana Card. Since then, it has continued collaborations with Kookmin Card and Shinhan Card, and in 2021, it formed a partnership with Hyundai Card.

Patrick Storey, President of Visa Korea, said, “Visa has supported Visa Token Service for various card companies over the years, providing safer and more reliable payment services to domestic consumers. Starting with the partnership with PAYCO, we are ready to collaborate with all partners capable of applying Visa Token Service, not just card companies.”

Since its launch in 2014, Visa Token Service is currently used by over 8,600 companies worldwide, including digital device manufacturers, issuers, acquirers, merchants, and payment service platforms in 193 countries. Compared to online payments using traditional card numbers, it has reduced fraud rates by 28%, establishing itself as a core global payment security solution.