PayPal Braintree has successfully reached more than 1 billion cards tokenized globally, making PayPal’s vault one of the largest industry vaults of network tokens. By converting traditional card numbers into network tokens, PayPal is helping merchants improve customer security and increase the likelihood of an approved transaction.
These efforts, achieved together with card networks, have resulted in an average improvement of 2% (or 200 basis points) in card authorizations and a quick checkout process – an average of 119 milliseconds in transaction latency improvement.1 For context on this speed increase, imagine you are viewing a series of images. The average human brain can process entire images that the eye sees in as little as 13 milliseconds. So, in theory you could process just over nine images in the time of this increase in speed.
Network tokens can be complex, but with little-to-no integration work needed on the merchant's side, they are a simple way to provide a measurable and impactful lift to authorization rates while creating a secure checkout experience.
Additional benefits include:
Network tokenization allows merchants to better secure a consumer’s transaction by masking the number printed on their physical card and replacing it with a dynamic code. As a result, the actual card number cannot be exposed or stolen, which helps reduce fraudulent transactions and makes it more likely that the consumer’s purchase will be successful.
The best payments experience is likely one that the consumer doesn’t have to think twice about. In collaboration with card issuers, PayPal Braintree can automatically update a consumer's card on file in the instance that it’s lost or stolen. In addition, card information can be automatically updated when it's near expiration, so the experience is not disrupted when the customer is ready to make another purchase.
In the case of a declined purchase, PayPal Braintree’s Smart Retries solution can help identify the best strategy for retrying the transaction to help complete the purchase, including retrying with a network token. Smart Retries uses machine learning to predict retry strategies based on several factors including the card used, the issuer, the merchant, transaction-level parameters, the processor and acquirer combination and even the day and time of retry.
PayPal remains committed to the value that network tokens can drive for merchants and looks forward to continued penetration in PayPal Braintree and PayPal portfolios.
More on network tokenization and why it matters here: https://www.paypal.com/us/brc/article/network-tokenization
1 Based on internal analysis of five global account merchants in Q1 2022 of token eligible traffic. Based on internal analysis for seven Braintree merchants in Q2 2022. Results may not be typical and individual customer results may vary.
Q&A: Create a more secure business with Network Tokenization
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