India’s UPI payments leader, PhonePe, has introduced a device tokenization solution for credit and debit cards. This new feature enables users to tokenize their cards within the PhonePe app and seamlessly use the tokens for transactions such as bill payments, recharges, travel bookings, insurance purchases, and payments at online merchants integrated with PhonePe Payment Gateway services.
Enhanced Security and Convenience
PhonePe highlighted that tokenization offers multiple benefits, including eliminating the need to save card details on merchant platforms or re-enter a CVV for every transaction. Tokenized cards, securely linked to devices, also help reduce fraud risks associated with stolen or leaked card details. Initially, the service will support Visa credit and debit cards. For merchants, tokenization is expected to boost security, improve transaction success rates, and facilitate faster checkouts, potentially leading to improved customer retention. Notably, PhonePe’s 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.
