What is tokenisation?

A long word for a simple idea. Tokens replace sensitive data such as credit card numbers and bank account details with non-sensitive data that has been randomly generated. When your customers pay online or in-store with a card or mobile device, tokenisation helps make sure that their personal data is not exposed to the risk of fraud. The technology is one of the foundation stones of data security today.

what is tokenization in banking?

Secure and cost-effective.

Just as casinos use chips rather than physical money, tokens serve to reduce security risks. Thanks to tokenised payment, details about your customers’ credit cards, bank accounts and personal information are kept safe from the threat of a data breach. Attackers cannot use tokens to commit fraud because they bear no relationship to the original personal data. Sensitive customer data is safely stored on secure servers outside the organisation, making compliance with data security standards easier and cheaper.

One-click shopping in safety.

As well as the security benefits of tokens, tokenisation means that merchants can offer faster and smoother checkouts. Customers do not have to enter information repeatedly in every transaction. They can complete a purchase with a single click. Tokenised payments also makes it easier for merchants to implement recurring payments such as subscriptions and to identify individual customers across all a merchant’s sales channels. Retailers can use tokenization to generate data insights and to reward repeat customers in their loyalty and incentive programmes.

Security and implementation challenges.

Not all tokenisation systems are equal. Tokenised payment systems and processes must be protected with strong security controls and monitoring. The PCI Council, the global payments forum for data security, recommends that merchants considering the use of tokenization should perform a thorough evaluation and risk analysis. Merchants should also make sure that tokens can be shared across all their sales channels, seamlessly and without substantial modifications. All tokenization options should be compliant with PCI data security standards.

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Leila Van-Herbert

Sales Team Lead Specialty Retail, Global Sales Vertical, Worldline
Leila is a passionate payments expert and leader with over ten years of experience in the payments industry having worked across multiple verticals and payments geographies. Working with a customer centric approach, Leila can distil complex payments requirements and drive specific customer led outcomes to simplify the payments journey and enhance the customer experience through a consultative sales approach. By delivering dedicated and structured account and relationship management, Leila is able to build strong client engagement, drive innovative solutions and leverage data-based decision making to deliver clear revenue outcomes both at an individual and team level.

Jie Xue

Product Innovation Manager, Solution & Innovation, Worldline
As Product Manager Innovations at Worldline, Jie focuses on understanding emerging trends and their intersections with digital payments, with a consumer-driven approach. She leads various innovation initiatives at Worldline where she helps translate these market needs into proof-of-concepts or innovative product offerings, in areas such as video gaming and retail. Prior to Worldline, Jie has worked in startup and innovations space in Europe and China. She shares a passion for tech and emerging markets.