

Tokenization is a security process that replaces sensitive payment information, such as card numbers, with unique non-sensitive tokens that protect data during storage and transactions.

When payment data is submitted, a secure system generates a token and stores the original details safely with authorised entities. The token is used for future transactions without exposing real data.
Tokenization reduces the risk of data breaches and supports compliance with PCI DSS. It is essential for recurring payments, saved cards, and digital wallets.
Businesses handling digital payments rely on tokenization to protect customer data while offering smooth checkout experiences.