Tokenization refers to the process of replacing sensitive data with unique identification symbols that retain all of the essential information without compromising its security. In order to attain PCI compliance, when a business processes payments, sensitive data must be encrypted. Tokenization is used to store credit card details so that hackers cannot access the data. It reduces the merchant’s PCI scope and business liability.
Tokenization also facilitates the checkout process for return customers. Instead of asking the customer to fill out all of their personal information again in the checkout form, the system automatically retrieves stored data and facilitates the process. Advanced payment platforms use tokenization to securely store data.