Tokenization Flow

What is Tokenization?

Tokenization is the process of replacing sensitive card information with an encrypted Token to avoid the risk of loss of sensitive data such as card number, expiry, CVV, etc. while making a payment. This eliminates the need for Merchants, PAs, and PGs to store sensitive card data on their end. The mapping of token to the card number lies only with the card networks thus preventing data exposure and enhancing card transaction security. 

AI Router Tokenisation Solution 

AI Router’s Tokenisation Solution encrypts the sensitive card details into a Token that is not bound to any device but is mapped to a merchant. This token can be used across any of the merchant’s platforms ( Web, MWeb, Android, IOS, etc) for future card transactions, thus eliminating the need for passing the card number through various entities involved in processing a card transaction. 

The sensitive card data is secured in the network's vault and a reference to the token number aka Paytm’s Token Index Number is shared with the merchant. The Token Index Number is used to fetch the full token, PAN, and transaction-specific cryptogram in real-time required to process a tokenized card transaction. Router’s tokenization solution eliminates the risk of loss of sensitive information while making a payment, as customers’ card details cannot be traced back from the token. 

First-time payment tokenization flow

1. User initiates the payment and provides his/her consent to save their card on the merchant's app/browser. 
2. Once the payment is successfully processed, Router initiates the tokenization request to the card network. 
3. The Card Network/ Issuing bank processes the tokenization request and creates a Token. 
4. Router returns a unique Token Index Number (TIN) corresponding to your tokenization request. 

    

   

Tokenised Card flow

1. The user initiates payment via the Token Index Number (TIN)
2. Router fetches and displays the saved card on the checkout page
3. User selects one of the saved cards to complete their transaction. 
4. Router selects a payment gateway to process the transaction. 
5. The token data flow to the card network via the acquirer bank. The card network replaces the same with actual card details for processing the transaction. 

    

   

PAs Supporting Tokenization Flow on AI Router

Below are the payment aggregators that currently support tokenization flow through Paytm’s AI Router.