Device tokens play a crucial role in the security of transactions made through digital wallets like Google Pay. When a card is added to Google Wallet, a unique device token is created for that specific card. This device token is used during the payment process to keep the financial account number (FPAN) secure.
During a transaction, the device token is sent in an encrypted packet to the merchant’s bank. The token service provider, typically the card network, decrypts the token to retrieve the physical card number once it is secure. The card issuer then conducts risk checks and verifies the transaction. Throughout this process, the device token ensures the security of the payment data in real-time, all within a matter of seconds.
One of the key advantages of device tokens is the built-in Android device authentication. Unlike physical cards where you may need to enter a PIN or provide a signature, digital wallets require additional authentication on your phone or smartwatch, such as face ID, fingerprint, or PIN. This added layer of security ensures that even if your device is lost or stolen, unauthorized transactions cannot be completed without proper authentication.
Moreover, since device tokens are tied to your bank account or line of credit rather than the physical card itself, you can continue using the same account even if you have to replace your card. Many banks allow you to make payments using the device token through Google Wallet while you wait for the new card to arrive.
The security benefits of tokenization come into play every time you use Google Pay or any other digital wallet for transactions. Whether you prioritize convenience or security, digital wallets offer a secure way to make payments while keeping your sensitive information protected. By understanding how device tokens work and the added security features they provide, you can feel confident in using digital wallets for your everyday transactions.
Article Source
https://blog.google/products/google-pay/device-tokens-google-wallet/