Tokenization in payments:
One-size-fits-all?
Not all tokens behave the same, and confusing them can mean vendor lock-in, failed payments, or lost revenue.
3 token types merchants should understand:
Network tokens (CoF):
Issued by Visa/Mastercard, tied to a merchant and cardholder, auto-update on reissue, best for recurring payments.
PSP tokens:
Created by Stripe/Adyen/etc. Secure, but processor-specific, switching PSPs means new tokens.
Digital wallet tokens:
Apple Pay / Google Pay DPANs are device-bound have great UX, but risky for subscriptions if not handled correctly.
As payments scale globally, token strategy becomes a growth decision, not just a security one.
One-size-fits-all?
Not all tokens behave the same, and confusing them can mean vendor lock-in, failed payments, or lost revenue.
3 token types merchants should understand:
Network tokens (CoF):
Issued by Visa/Mastercard, tied to a merchant and cardholder, auto-update on reissue, best for recurring payments.
PSP tokens:
Created by Stripe/Adyen/etc. Secure, but processor-specific, switching PSPs means new tokens.
Digital wallet tokens:
Apple Pay / Google Pay DPANs are device-bound have great UX, but risky for subscriptions if not handled correctly.
As payments scale globally, token strategy becomes a growth decision, not just a security one.
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