Tokenization

byPaytm Editorial TeamLast Updated: August 19, 2025

Definition

Tokenization is the process of replacing sensitive payment data like card numbers with unique tokens to secure transactions.

Usage

When you make a digital payment, your actual card details are not shared. Instead, a token is used to process the payment safely.

Benefits

  • Protects card details
  • Reduces fraud risks
  • Enhances user trust in online payments

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

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