First and foremost, it must be stated that tokenization is a PCI-approved method of protecting payment card industry data and is authorized by the PCI Security Standards Council (SSC) to use in pursuit of PCI Compliance.
It has been a hot topic in the payments industry for some time, now used by financial institutions in transaction payment processing all around the world. Companies implement tokenization systems to keep sensitive data, like credit card payment details, safe while still being able to store and use the information.
The reality unfortunately is that billions of personal records are exposed each year. We have seen massive data leaks consistently and they are becoming a frequent occurrence putting global brands in the news for all the wrong reasons affecting millions of consumers.
Because tokenization as per design reduces how much of your company’s data environment contains material relevant to privacy regulations, achieving compliance certifications (such as PCI DSS, CCPA, SOC2, GDPR, etc.) is much easier and less costly.