Explained: How card tokenisation may change your shopping experience forever

Do you know what tokenisation is and how it can make your life easier? Card payments in the country are set to become more seamless and more secure as commercial lenders and fintech companies are rapidly expanding device tokenisation -- or technology that lets you hide your card number on your device and use a safe alternative code for making all your transactions.

What is tokenisation and how does it work?

Tokenisation simply replaces your real card number with a unique 'token'. This token works only on a specific device and with a specific app or platform. It is used for payments—not your actual card number. The user starts the process on their preferred app or device. The app then sends the request to the card network, which issues a token after getting consent from the concerned bank. This token then stays on the device and can be used for payments.

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Key benefits of tokenisation

• Payments can be made faster and in a far more secure way
• User not required to memorise the card number while shopping
• Your card information is no longer shared with the merchant’s site
• Every payment uses the token, not your actual card number
• Fewer payment failures
• Higher success rates
• Extremely low risk of card data leaks or fraud
• Even if the device is lost, the token stays safe (it doesn't work on another device)
• Customers get better control and a zero-hassle experience

Here are answers to a few frequently asked questions (FAQs) about the subject:

Where can one use tokenised payments?

Tokenisation is allowed on consumer devices like smartphones, wearables, laptops and IoT-enabled devices. It works for all payment modes: contactless, in-app transactions and QR code payments.

Is it compulsory for customers to use tokenisation?

No. Tokenisation is completely optional. The user can choose whether to tokenise their card and even decide which specific use cases they want it for.

Can users manage limits and select which tokenised card to use?

Yes. Users can set their own per-transaction and daily limits. If they have multiple cards tokenised, they are free to choose which one to use for any transaction.

How much does tokenisation cost?

Tokenisation is free -- customers don’t need to pay anything.