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

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