Card tokenisation is when a card’s 16-digit number is replaced with a unique code called a token. This token can then be used to make online payments, without having to enter all the details like normally required.

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What does tokenisation mean for PhonePe users?

PhonePe users can now tokenise their cards on the PhonePe App, and then use the card tokens seamlessly for a variety of purposes such as bill payments, recharges, booking travel tickets, making insurance purchases, making payments on pin code, as well as at online merchants where the PhonePe payment gateway services are integrated.

As a result, users no longer have to save their card details on merchant platforms or enter a CVV for every transaction.

This can mean higher success rates and fewer drop-offs at checkout, according to PhonePe.

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The company also claims that fraud risks from stolen or leaked card details are also significantly reduced, giving consumers an extra layer of security and boosting confidence when it comes to online payments.

At the moment, PhonePe users will be able to tokenize their Visa credit and debit cards.

“We plan to expand this offering by integrating with more card payment networks and enabling access to the device tokenised cards to all PhonePe PG merchants,” said Rahul Chari, Co-founder & CTO, PhonePe.

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PhonePe even claims that faster transactions, improved customer retention, and a frictionless checkout experience will fuel growth for businesses.