PhonePe unveils device tokenization solution for secure card transactions

India's UPI payments giant, PhonePe, recently announced the launch of a device tokenization solution for credit and debit cards.

With this launch, users will be able to tokenize their cards on the PhonePe app and use the card tokens seamlessly across all use cases, such as bill payments, recharges, booking travel tickets, making insurance purchases, making payments on Pincode, as well as at Online Merchants where the PhonePe Payment Gateway services are integrated.

Providing benefits to consumers and merchants

PhonePe said tokenizing cards offers several benefits for users, including eliminating the need to save card details on merchant platforms or enter a CVV for every transaction. The company added that tokenized cards securely linked to devices help reduce fraud risks associated with stolen or leaked card details, providing an added layer of security for online payments. Initially, the service will support Visa credit and debit cards.

For merchants, tokenization is expected to enhance security and improve transaction success rates. With a growing network of tokenized cards, businesses could see faster checkouts and improved customer retention. PhonePe said its payment gateway is the first to offer this solution to all its merchants.

Leadership comments

Commenting on the launch, Rahul Chari, Co-founder & CTO of PhonePe, said, “This launch will be a step forward in making digital payments more secure and seamless. 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.

"At PhonePe, we have always focused on building innovative solutions that enhance customer trust and convenience. As digital payments evolve, we remain committed to delivering offerings that make transactions safer, faster, and frictionless for both businesses and consumers," Chari added.