PhonePe Launches Device Tokenisation For Secured Card Payments

SUMMARY

The fintech giant has unveiled this solution to curb digital frauds on its platform

With this, users will be able to tokenise their credit and debit card

It aims at speeding up the transaction process, reducing the risk of frauds during card payments and providing higher conversions for merchants

Fintech giant PhonePe has unveiled device tokenisation solutions for credit and debit cards, aiming to curb digital frauds on its platform.

With this solution, users will be able to tokenise their card and access all the use cases including bill payments, recharges and booking travel tickets among others on the PhonePe app.

This solution aims at speeding up the transaction process, reducing the risk of frauds during card payments and providing higher conversions for merchants.

“This launch will be a step forward in making digital payments more secure and seamless. We plan to expand this offering by integrating with more card payment networks and enabling access to the device tokenised cards to all PhonePe PG merchants,” PhonePe cofounder and chief technology officer Rahul Chari said.

This comes a week after PhonePe exited its account aggregator (AA) business, citing its inability to onboard a sufficient number of financial information providers (FIPs) to its platform as the reason.

In December last year, PhonePe also discontinued all third-party partnerships and integrations with payment aggregators including Juspay, to offer payments solutions via direct integration.

Besides UPI, PhonePe also offers various services like Insurance, lending and stock broking platform. Last year, the fintech giant launched its Android app marketplace Indus Appstore, which claims to host more than 2 Lakh apps across 45 categories.

In November 2024, the company also forayed into the quick commerce space by piloting quick delivery service via its ecommerce platform Pincode, in parts of Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad and Varanasi.

Talking on the UPI front, PhonePe continued to lead the race with 48.4% market share in the month of January. It processed 810.2 Cr transactions in the month under review, 1.5% higher than the 798.4 Cr transactions processed in December 2024.

The fintech major managed to cut down on its loss by 28% to INR 1,996 Cr in FY24, from the INR 2,795 Cr loss it posted a year ago. Meanwhile, its operating revenue zoomed almost 74% to INR 5,064 Cr in FY24, against INR 2,914 Cr in the previous fiscal.