Omise Taps Visa’s Token Tech to Combat Fraud and Boost Approval Rates for Thai Merchants
Global payments giant Visa and Southeast Asian payment gateway Omise have announced a strategic partnership to fortify Thailand’s digital commerce infrastructure. The collaboration introduces Visa’s Network Token solution to the Thai market, a technological shift aimed at mitigating online fraud while simultaneously increasing transaction approval rates for local merchants.
The initiative comes as the region’s digital economy faces dual pressures: the increasing sophistication of cyber fraud and the revenue leakage caused by legitimate transactions being declined.
For Omise, Japanese-founded in 2013 and now a dominant player in the APAC region, the integration represents a continued push to provide enterprise-grade infrastructure to merchants in Thailand, Singapore, Malaysia, and Japan.
Technological Shift: From Static Data to Dynamic Tokens
At the core of the partnership is "Network Tokenization," a process that replaces sensitive primary account numbers (PANs) with unique, encrypted digital identifiers or "tokens." Unlike traditional card-not-present transactions, which rely on static details susceptible to data breaches, tokenized transactions utilize unique cryptograms for each payment.
According to performance metrics released by Visa, the implications for the bottom line are significant. The technology has demonstrated the ability to reduce fraud by up to 58%. Furthermore, by optimizing the authorization process, tokenized transactions frequently see an approval rate uplift of approximately 4%, directly addressing the issue of "false declines."
Impact on Recurring Revenue
Beyond security, the partnership addresses a critical pain point for the subscription economy: involuntary churn caused by expired or reissued cards. The Network Token solution facilitates the automatic update of payment credentials, ensuring revenue continuity for businesses relying on recurring billing models.
Kanaise Luenthaisong, Director of Strategic Partnerships at Omise, noted the shift in the role of payment processors. "Payments are no longer just transactions; they have become a foundation for new business models," Luenthaisong said. "By integrating Visa Network Tokens, we help Thai merchants build commerce that is secure by design... ensuring payments continue seamlessly when cards change."
Early Adopters Report Tangible Gains
The rollout is already yielding measurable results for major players in the Thai market. Coway Thailand, a leader in subscription-based home appliances, reported an 8.5% increase in transaction volume after integrating the solution via Omise.
"Security and trust are core to our promise to customers," said Kiryong Choi, CEO of Coway Thailand. "We have experienced fewer payment disruptions and stronger reliability across our digital payment channels."
FinTech operator TrueMoney has also adopted the technology to bolster security for its digital wallet users, with Chief Business Development Officer Nutthawadee Sa-Nguankulchai citing the need for "frictionless experiences" balanced with high-level transaction protection.
Industry Context
This partnership aligns with broader global trends in payment optimization. Visa reports that its tokenization technology generated over USD 40bn in incremental commerce revenue globally and prevented USD 650m in fraud over the last year.
"We are not just reducing fraud and unnecessary declines; we are laying the foundation for a safer, more resilient digital commerce ecosystem," stated Choenporn Sawasdivorn, Head of Client for Visa Thailand.
Norbert Gehrke
