How does tokenisation work?

Worldline Editorial Team

Tokenisation is the process of protecting sensitive data by replacing it with an algorithmically generated surrogate number called a token. These tokens are issued and utilized subsequently to safeguard real card credentials. It is passed through the internet or the various wireless networks to process the payment without actual card details getting exposed. The card number is held safe in a secure network token vault.

How tokenisation works?

The cardholder can get the card tokenised by initiating a request on the merchant application, and explicitly providing their consent for tokenisation.

The tokens are generated and issued by card schemes/issuers. They will act like Token Service Providers (TSPs) and will facilitate card data protection and security. The tokens are mapped with underlying card credentials and stored in a secured card vault at TSP’s end.

The token requestor will forward the request to the card network, and with the consent of the card issuer, the TSP will provision and issue a token for the combination of a card/token requestor.

When users enter their card details on the merchant payment page, the Merchant/TR sends a request for Token provisioning. The TSP on receipt will first request verification of the data from the customer’s bank. When the data gets verified, a token unique reference number gets generated and is sent back to the TR/Merchant.

Tokenisation of card data will be done with explicit customer consent requiring Additional Factor of Authentication (AFA) validation by the card issuer.

Benefits of Tokenisation Payment

Tokenisation will not only open all possibilities to reach new customer base currently not using card as payment mode but also helps your business improve data security.

Tokenisation will also help from the point of data capture to storage, as it eliminates the actual storage of credit card numbers and minimizes the impact of security breaches.


Tokenisation can reduce the cost and time linked with processing payments, improving both your customer experience and payment security.

If you are looking for competitive tokenisation solutions that can leverage your business, contact our team today!

Our team of experts will work with you to get your business up and running on the latest payment technologies, so you can focus on what you do best – making great products and serving your customers.