Use of payment tokenization by e-commerce merchants worldwide 2023-2024

Although

out of 10 e-commerce merchants stated they used a form of payment tokenization as a means of cybersecurity, overall use declined. This is according to a survey held in late 2024 among payment management professionals working at e-commerce merchants worldwide. Payment tokenization refers to the replacement of sensitive information - such as credit card information - by a randomized digit code, typically 16 digits. This service can be provided through an intermediary - such as a payment gateway, like Adyen or Stripe, or a merchant acquirer, like a bank - or directly through the card networks from Visa or Mastercard. It should not be confused with the tokenization of real-world assets. This involves blockchain technology, although card networks like Visa and Mastercard are actively exploring such options.