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AdvancedPayments1 min

Card tokenization replaces the real card details with a random digital substitute (a token) that can be used safely for payments in a phone or on a website.

In plain words

When you add a card to Apple Pay or Google Pay, the payment system and the bank issue a token: a separate number tied to your device or to a merchant. The merchant and the terminal see the token and the real card number is not passed on, so a data leak at a merchant does less harm. A token can be revoked without reissuing the card itself.

Example. You lose a phone with Apple Pay: the bank can revoke that phone’s token without blocking the plastic card. Paying with the card on other devices keeps working.

Related terms

← The whole glossary

Word of the dayInflationBasic

Inflation is a sustained rise in the general level of prices, so that money buys fewer goods and services than before.

Example. Prices rose 10% over the year and your deposit earned 8%: formally you earned something, but you can buy a little less with that money than last year (108 against 110, illustrative numbers).

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