SUMMARY
Tokenization is an anonymized set of characters against the original payment credential like a credit card
RBI recently changed tokenization guidelines due to which online stores can no longer store tokens
Tokens will also make recurring payments extremely safe by allowing payment providers to save cards using tokenization solutions
With ever growing digital payments online, offline using multiple payment methods across form factors is making our lives easier with frictionless fast payments, have we wondered how is the security implemented while making our checkout experience easier.
Payment data security is a critical part of individual security, who knew the answer would lie in a seemingly simple switching of numbers? That’s tokenization, put in the simplest of terms. Tokenization is nothing but an alias – an anonymized set of characters against the original payment credential like a credit card– where a token reference is used instead of actual card number with matching expiry date. This token number is irreversible, created using an advanced algorithm that has the intelligence to map the actual card value corresponding to the token number which is impossible to crack since the original number mapped to the pseudo number exists only with the tokenization provider.