What is Tokenization in Retail? Explained

Tokenization in the retail industry is a security measure that involves replacing sensitive information, such as credit card numbers, with a unique and non-sensitive equivalent called a token. This process adds an extra layer of protection to customer data during transactions. In retail payments, tokenization ensures that actual card details are not stored or transmitted, reducing the risk of unauthorized access and fraud. This secure method enhances customer trust by safeguarding their financial information, contributing to a safer and more reliable retail payment environment.