How tokenization supports digital payment

With the introduction of contactless payments and Host Card Emulation (HCE) technology, mobile proximity payments have begun to emerge in the digital payments landscape. Underpinned by the concept of tokenization, digital giants such as Google and Apple actively engaged with their x-pay wallets, supported by the international schemes providing the core foundation of tokenization. With the rapid increase of contactless acceptance and smartphone market penetration, banks are onboarding their card products to x-pay wallets to provide more seamless and better user experience for their cardholders.

Further acceleration has been observed during the Corona pandemic as contactless payments have been enforced to reduce human interaction to a minimum. As a result, all types of contactless transactions boomed, and x-pay wallet was no exception.