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EBANX has expanded the use of network tokens to three additional Latin American markets after reporting strong results during early deployments. The company had already introduced the technology in Brazil and Chile. Now Colombia, Peru and the Dominican Republic have joined the roster, widening access to a system designed to replace sensitive card numbers with secure, dynamic identifiers. The latest expansion comes as regional merchants, financial institutions and fintech firms search for ways to improve approval rates while reducing exposure to fraud across high-volume digital transactions.
A Broader Rollout After Early Results
EBANX stated that internal tests across Latin America showed a reduction in credit card declines related to fraud and security by as much as 86 percent when network tokens were used. Those findings helped support the decision to extend the technology beyond the initial markets.
In Colombia, the company is now processing more than two million monthly transactions through the tokenized system. EBANX reported that the average approval rate for transactions with network tokens is about ten percentage points higher than those without. The company said that adoption among merchants has reached a level where the majority of transactions already rely on the system. More than one hundred companies across sectors such as SaaS, online retail and gaming now use the technology.
Why Tokenization Matters in Emerging Markets
Network tokens replace a card’s primary account number with a dynamic substitute held within card-network infrastructure. This process reduces the possibility of fraud tied to stolen or compromised credentials. It also supports higher transaction approval rates because the token remains valid even when the physical card is reissued, helping to maintain continuity for recurring payments and subscriptions.
In emerging markets, where cross-border commerce continues to rise and fraud concerns remain high, tokenization has become a central topic. Payment providers have increasingly turned to this approach to support digital commerce and reduce the friction that often accompanies security checks. By removing some of the vulnerabilities linked to static card data, network tokens can help merchants retain customers, especially in sectors with frequent repeat billing.
EBANX’s Position in Peru
In Peru, EBANX noted that it is currently the only payment service provider offering network tokens across both major international card networks. Its team said this gives Peruvian merchants access to an approach that supports steadier payment performance, especially as the country’s e-commerce sector grows. The local market is expected to exceed thirty billion U.S. dollars annually within a few years, according to industry figures cited by the company.
Seven out of ten card transactions processed through EBANX in Peru already use network tokens. The company stated that approval rates improved by more than seven percentage points in comparison with non-tokenized transactions. SaaS providers experienced the largest increase, while social media, online education, online retail and streaming companies also saw gains.
EBANX explained that approval rates in some segments already surpass eighty percent. The company views these early results as an indication that tokenization can stabilize high-volume categories with variable billing patterns.
Developments in the Dominican Republic
The Dominican Republic marks the first time EBANX has launched network tokens in a Caribbean market. The company said this represents another phase in its cooperation with AZUL, the electronic payments provider owned by Grupo Popular. The two companies have worked together since 2023 on efforts to support e-commerce and strengthen digital payment channels in the country.
Card usage is prevalent in the Dominican Republic, where a large majority of digital payments are made with credit and debit cards. EBANX reported that approval rates for tokenized transactions in the early rollout phase have reached a level above ninety percent. Local partners expressed support for the deployment, describing tokenization as a step that brings more security and steadier acquisition performance for merchants.
Executives at EBANX’s regional teams said the initiative helps prepare the country for increasing digital activity by reducing the likelihood of fraud-related declines. Leaders at AZUL highlighted their interest in broadening the pool of available technologies for local merchants as digital adoption continues to rise.
Why Banks and Merchants Are Paying Attention
Tokenization is gaining attention in Latin America because it addresses several issues that merchants and financial institutions face daily: fraud, card reissuance, and inconsistent approval rates. Many markets in the region have experienced rapid growth in digital commerce, but that growth has often been accompanied by hurdles in transaction reliability. Dynamic tokens can help reduce disruptions by maintaining continuity between cards and stored credentials.
For merchants, higher approval rates translate to more stable revenue, especially in subscription-based sectors where failed payments can lead to customer churn. For card issuers and processors, the reduction of fraud-related declines helps lower operational costs.
Regional payment providers and fintech firms are also tracking the trend closely. As digital commerce matures across Latin America, tokenization may become a standard rather than an emerging tool. This would bring the region into closer alignment with practices already seen in North America and parts of Europe.
The Technology Behind Network Tokens
Network tokens are generated by card networks and rely on secure infrastructure that updates the token dynamically. This makes the token less vulnerable to misuse. When a physical card expires or is replaced, the token linked to a merchant remains active, allowing payments to continue without disruption.
Because the token carries additional authentication features, issuers often view tokenized transactions as lower risk. This perception can contribute to higher approval rates across a variety of sectors.
The model is particularly useful in emerging markets, where high decline rates can discourage both domestic and international merchants. By pairing risk reduction with improved transaction continuity, the technology aims to support a more predictable environment for digital payments.
Regional Context and Regulatory Considerations
Across Latin America, governments and financial institutions are encouraging tools that reduce fraud and support secure online commerce. Each country’s rules differ, but regulators share a common interest in protecting consumers and improving payment stability as digital activity accelerates.
Tokenization fits within these efforts because it relies on established payment-network standards rather than proprietary data storage. This gives regulators and financial institutions more confidence when assessing risk. As digital commerce grows, the balance between security and ease of use is becoming a central consideration for policymakers.
Looking Ahead
EBANX stated that it plans to continue rolling out network token capabilities in additional Latin American markets. The company views tokenization as a resource that can help merchants and financial institutions manage rising transaction volumes while reducing exposure to fraud. Its teams across the region have argued that early results show stronger approval performance and fewer interruptions for customers.
As the region’s digital economy expands, other payment providers and fintech firms are likely to study these outcomes to determine whether similar deployments could work in their own operations. Tokenization has moved from an experimental feature to a widely discussed option across markets where digital commerce is growing quickly.
