What benefits does PhonePe’s device tokenisation bring to consumers and merchants?

New Delhi: PhonePe, a leading fintech company, has launched a device tokenisation solution to enhance the security of credit and debit card transactions.

This new offering allows users to tokenise their cards via the PhonePe app, enabling them to use these card tokens seamlessly across various services, including bill payments, recharges, travel bookings, insurance purchases, payments on Pincode, and at online merchants where PhonePe Payment Gateway is integrated.

“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,” said Rahul Chari, Co-founder and CTO of PhonePe.

Chari further added, “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.”

Consumer benefits

For consumers, tokenising their cards eliminates the need to store card details on merchant platforms or enter CVVs with every transaction. This leads to improved transaction success rates and reduces cart abandonment during checkout.

Additionally, tokenised cards are securely linked to devices, reducing fraud risks from stolen or leaked card details, further bolstering online payment security and enhancing consumer confidence.

Initially, consumers can tokenise their Visa credit and debit cards for added security.

Merchant advantages

Merchants will benefit from more than just security – they will gain access to an expanding network of tokenised cards, which ensures faster transactions and higher conversion rates. The increased adoption of tokenised payments will also result in improved customer retention and a smoother checkout experience, leading to business growth.

“As a leading PG, PhonePe PG is proud to be the first to offer this solution to all its merchants,” the company remarked.

With IANS inputs