How Does Tokenization Work – Introduction to Tokenization

Tokenization allows for data to be stored in a secure location, with several levels of authentication required for access, while a random token is used online as a placeholder. The token alone is useless should hackers or malware gain access to it. Tokenization was first introduced in 2005 and has been recommended since 2011 by the Payment Card Industry Security Standard Council. In this introduction, we provide some elements of comparison between encryption and tokenization and walk you through how tokenization works.