One of the simplest ways that subscription-based businesses can improve the shopping experience is by enabling a faster checkout. Tokenization makes this possible by storing customer payment details. Tokenization is a way of securing financial data. It replaces sensitive credit card information with a non-sensitive equivalent, called a token. Mobile payment providers such as Google Pay and Apple Pay are already using tokenization.
Easy & secure payment method for repeat transactions
In payment processing, tokenization protects sensitive information by replacing the data with a unique string of randomly generated characters called a token. Relationships between the original values and token values are stored in a secure vault. When a user or application needs the correct data, the tokenization system looks up the token value and retrieves the original value. This allows customers to perform multiple, repeated, or recurring transactions without needing to enter their payment information for each individual purchase, which results in quicker, easier transactions and an overall improved user experience.
Merchants often mask a portion of the data to protect it but reveal other parts to help users identify which credit card is being charged without requiring the data to be detokenized first. This is sometimes displayed on receipts as:
xxxx xxxx xxxx 0589
The goal here is again greater convenience for a better user experience. Tokenization is a necessity for any business that leverages a subscription-based model. The payment convenience that tokenization makes possible is another way to diminish churn. The bottom line- tokenization is ideal for enterprises that seek to offer customers a smooth experience during checkouts. It is because tokens can be stored securely and utilized to allow single-click payments during future transactions.
How does it work?
For tokenization to work, a payment gateway is needed to store sensitive data that allow for the random token to be generated. Payway offers complete tokenization, storing data in its secure vault. Data is retained and processed in a secure environment that satisfies PCI Security Standards for credit card processors.