Fintech giant PhonePe has announced the launch of a device tokenization solution for credit and debit cards. With this feature, users can tokenize their cards directly on the PhonePe app.

Once tokenized, PhonePe users can make bill payments, recharges, travel bookings, insurance purchases, and payments at PIN-based terminals using their cards. Additionally, the tokenized card can be used for online transactions at merchants where PhonePe’s payment gateway services are integrated. Throughout this article, we will share all the details about this new system and its benefits.

PhonePe Introduces Tokenization for Safer Digital Payments

PhonePe co-founder and CTO Rahul Chari said that this launch is an important step in making digital payments more secure and easy. He added that PhonePe will expand this feature by working with more card payment networks and making tokenized cards available to all PhonePe PG merchants.

“At PhonePe, we always focus on creating simple and safe solutions for customers. As digital payments grow, we want to provide services that make transactions secure, fast, and hassle-free for both businesses and users,” Chari said.

Benefits of Tokenization

According to PhonePe, tokenizing a card offers many benefits:

  • No need to save card details: Customers will not have to store their card details on merchant platforms or enter CVV for every payment. This will improve success rates and reduce transaction failures.
  • Better security: Tokenized cards are linked to the user’s device, reducing the risk of fraud due to stolen or leaked card details.
    More trust in online payments: With extra security, customers will feel more confident using digital payment services.

At present, customers can tokenize their Visa credit and debit cards, with more options to be added soon.

How to Enable Device Tokenization on PhonePe

Activating device tokenization on the PhonePe app is simple. Follow these steps to secure your card transactions:

Steps to Enable Tokenization:

  1. Update PhonePe App – Make sure you have the latest version of the PhonePe app installed on your smartphone.
  2. Go to Payment Methods – Open the app and go to the ‘Payment Methods’ section under your profile.
  3. Select Your Card – If you have a saved card, select it. If not, add a new card.
  4. Initiate Tokenization – Tap on ‘Secure Your Card’ and follow the on-screen instructions.
  5. Enter OTP – You will receive a one-time password (OTP) from your card-issuing bank. Enter it to complete the process.
  6. Tokenization Complete – Once verified, your card is successfully tokenized and ready for secure payments.