Fintechs race to scale device tokenisation for cardholders

Financial technology firms (fin-techs) are racing to scale device tokenisation for cardholders in India, streamlining payments across merchants and driving sharper checkout conversions along with higher spending.

- AJINKYA KAWALE

Device tokenisation is a payment solution that encrypts card details with secure codes, thereby storing them on a device such as a phone. This can further be used to authorise transactions only from the registered device.

This contrasts with card-on-file tokenisation (COFT), where tokens are stored on the merchant’s or the payment processor's servers instead of the user’s device. Merchants include small and large businesses across transaction categories such as e-commerce, quick commerce, electronics and fashion, among others.