How Google Pay Tokenization Will Support Debit Card Payments?

Customers can use Google Pay for quick, painless checkouts while also knowing that their data is stored with many layers of security by Google. When customers pay in stores, Google Pay does not transmit to merchants their actual card numbers; instead, it facilitates a process known as tokenization, in which a token stands in for a customer's actual credit and debit card data.

Google Pay, the digital wallet platform, announced on Wednesday that its network of bank partners offering card tokenization on the Google Pay app has grown. SBI, IndusInd Bank, Federal Bank, and HSBC India have all been added to the app. Google Pay was previously available through Kotak Mahindra Bank, SBI Cards, and Axis Bank.

What is Google Pay Tokenization?

Google Pay allows users to assign a "virtual account number," also known as a token, to a virtual card on their Google Pay-enabled smartphone, which securely ties the actual card number to the virtual card. The card number that a token represents is unique. The app user's mobile device stores an encryption key in memory that it uses to decrypt contactless transaction limited-use and single-use keys also known as cryptogramsNFC payments.

Google Pay will provide consumers with safe and secure omnichannel experiences by allowing them to make contactless payments at over 2.5 million Visa merchant locations, scan and pay at more than 1.5 million Bharat QR-enabled merchants, and pay bills and recharges using their credit card from within their Google Pay app.

How to Enable Debit Card Tokenization in Google Pay?

To activate card tokenization on your Google Pay app, you'll need to complete a one-time setup by inputting their card data and then inputting the OTP that the bank will provide to your phone number. You can make payments at NFC-enabled terminals after you enable the function. The cards can also be used to make purchases at significant online retailers such as Myntra, Yatra, Dunzo, and many others. Tokenized cards, according to Google, can also be used for cellphone recharges, bill payments, and insurance payments, among other things.

Google Pay Tokenization Steps

When using Google Pay to make in-store or online payments, tokenization works a little differently. However, here's how payments work in general:

A credit or debit card is added to the Google Pay app by a Google Pay user. Google Pay asks the bank that issued the card for a token to represent the card they're trying to add. This card is now "tokenized," meaning it has a unique identifying number associated with it, once the token is granted. The freshly tokenized card is encrypted by Google Pay and ready to be used for payments.

A customer taps their mobile device on a point-of-sale terminal or chooses to pay via your mobile app to make a transaction. The customer's tokenized card and a cryptogram that works as a one-time-use password are returned by Google Pay. The cryptogram is validated by the card network, which compares the token to the customer's actual card number.

To execute the transaction, your acquiring bank and your client's card issuing bank employ existing customer information and decrypted customer billing information.

Things to keep in mind

• Google Pay does not handle or authorize transactions; instead, it tokenizes cards and passes this tokenized card and other customer information to credit card networks, allowing for secure and quick transactions.
• Merchants should keep their own records and withhold taxes appropriately because they are the seller of records.
• Orders are still managed by merchants through your current payment processing system.