What Is Cards Tokenization & How To Use It In Google Pay?


Google has further expanded its list of bank partners by offering card tokenization service on its Google Pay app. Google Pay app users can now use the secure digital token service on debit cards by SBI, IndusInd Bank, and Federal Bank and Credit cards by IndusInd Bank and HSBC India. Google Pay previously announced the new service with Kotak Mahindra Bank, SBI Cards, and Axis Bank.

What Is Cards Tokenization & How To Use It In Google Pay?

Before we talk more about Google Pay's association with leading banks, let's understand what Cards Tokenization is and how it enhances the digital payments experience.

What Is Cards Tokenization?

Card Tokenization is a secure mode/service that enables credit and debit cardholders to make digital payments through a secure digital token attached to their phone. It is one of the most secure ways to conduct digital payments wherever credit or debit cards are involved. With Cards tokenization, users can make payments via credit/debit cards without having to physically share their sensitive details. The sensitive detail (Card number, CVV, etc.) is replaced by a non-sensitive algorithmically generated number, called a 'Token' which makes it impossible for exploiters to misuse credit/debit card holders' sensitive information.

The most common example of card tokenization is online payments on Google's Play Store and Apple's App Store. If you have ever purchased an app/service on the Play Store or App Store, you had used the card tokenization service. Your credit/debit card information is tokenized and stored on your device to enable payments on the app stores. Since the alphanumeric code cannot be traced back to the user, your credit/debit card information is safe.

With Google Pay, the card tokenization feature will enable safe and secure omnichannel experiences to help consumers. Google mentions that the card tokenization in Google Pay app will also work with online merchants, delivering more native and seamless OTP experiences without redirecting users to 3D Secure sites. This will also cut down the overall transaction time. Google Pay Card Tokenization feature will have the following benefits.


• Use Near-field communication (NFC) capable devices/ phones to make contactless payments at over 2.5 million Visa merchant locations

• Scan and pay at more than 1.5 million Bharat QR enabled merchants

• Pay bills and recharges from within their Google Pay app using their credit card

Since the card tokenization in Google Pay will be facilitated on the Visa network, it can further encourage digital payments in the country. The contactless form of payment will allow mobile users to conduct digital payments on the Google Pay app via their credit/debit cards. You can keep your credit/debit cards at home and make offline purchases at physical outlets with just one tap via your smartphone. Google also mentioned that the team is also in talks with other banking partners to further expand the adoption of card-based payments with tokenization in India.

It is also worth mentioning that card tokenization does not burden the merchants since it does not require them to make any major changes to their current payment acceptance systems.

How To Enable Cards Tokenization On Google Pay?

• Open 'Set up payments methods' in Google Pay app to do a one-time set-up.
• Tap on 'Add credit or debit card and click on proceed.
• Enter your card number.

Once you have successfully registered your card in the Google Pay app, the feature can be used to make payments at NFC-enabled terminals. The service will also allow you to make purchases at large online merchants such as Myntra, Yatra, Dunzo, etc.

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