Home References Tokenization paves path for secure mobile payments

In accordance to the recent security breaches, the mobile payment consumers have a common question “how can I securely use mobile payments?” The emerging security threats have put a fire under the mobile payment industry for finding a solution that ensures safety of the sensitive payment information. While the techies have already flooded the market with multiple options to fight against payment data breaches, some really effective new technologies like data encryption and tokenization have created a buzz by making payment significantly more secure.

At its root, tokenization is the representation of something having a high value with a low value- the way a casino chip represents cash. Mobile payments are gradually inheriting digital tokens as inseparable part for reducing security risks associated with the highly sensitive data of user’s credit or debit card.

Introduction of tokenization to mobile payments and security follows

Mobile payment tokenization can be explained as a process of replacing the sensitive data on mobile devices with some unique identification symbols. It enables contactless payments ensuring mobile payment security by retaining the essential data information without making any compromise on the verge of its security. In this process, the data of the actual cardholder is used to complete a transaction. Following the authorization of the transaction, the sensitive data is sent to a highly secure and centralized server to be stored securely.

Mobile payment tokenization seeks to minimize the data a business requires keeping on hand. It bolsters the security of debit cards, credit cards and e-commerce transactions and at the same time minimizes the cost and complexity with the government regulations and industry standards.

How is security assured with tokenization?

  • The data is stored in riskless Cyber-Source data centers and is exchanged only in return for a safe token.
  • The tokens are generated using proprietary algorithms and are resistant to reversibility.
  • The token format fits well to the payment card data fields.
  • Tokens support almost every authenticated payment action and checkout models.

Benefits of mobile payment tokenization

  • Compliant with PCI DSS
  • Renders card data in a meaningless way to the hackers
  • Reconciles payments and chargebacks without handling the payment data
  • Automatically integrates with the Cyber-source Account updater to update the payment data
  • Minimizes payment transaction failures
  • Works with current processor and systems

How does mobile payment tokenization connect to HCE?

The Host Card Emulation (HCE) cloud-based mobile payments lead to a new horizon in the payment industry, which is presently pondering seriously around the ways to enhance the security of on-device data and the associated risk management responsibilities. Host Card Emulation places card data in the cloud storage and thus, it has become the latest hot topic that MasterCard and Visa are together working on HCE specifications. The secure element that the on-device hardware storage lacks creates the strong requirement for powerful software based solutions, capable of mitigating the risk on the sensitive card data on the phone memory. To avoid all these complexities of data storage in the on-device secure elements the financial institutions are looking forward to move the sensitive data to cloud. With the extended support from Android to HCE, in the KitKat operating system, cloud storage is no longer a distant pie. Moving sensitive data out of a phone’s secure element (SE) to cloud solves a number of problems. HCE uses multiple techniques that ensure data security, enhancing the user experience. Mobile payment tokenization has emerged as one of the most secure ways making HCE cloud-based payments secure. It protects the original PAN number from the risks of misuse.


The Mobile payment tokenization furthers the difficulties for the hackers longing to gain access to the cardholder’s data. Data Security has always been a serious concern and thus, in an era when mobiles have become man’s best companions; mobile payment tokenization would prove to be a boon for the secure payment seekers.

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