What is iPay88 tokenisation and why do e-Commerce businesses need it?


iphone, credit card and notes

What is tokenisation?

Tokenisation” is a trendy payment word in the ecommerce world. It is an easy process that will allow you to link to your customer’s bank details with a digital token.

No additional configuration is required and it will simplify future purchases as entering bankcard details will be avoided, which will speed up the checkout process.

Tokenisation enables e-Commerce business owners to provide a seamless checkout experience to their customers, especially the returning ones. 

Normally, customer credit card comes as a 16-digit number, along the name, expiry date and CVV code – in which all this information can be “tokenised’.

tokenization explained

How does tokenisation work on e-Commerce websites and apps?

Tokenisation works by protecting cardholder details to prevent fraud. The token will be stored in iPay88 PCI-Compliant (PCI-DSS) security vault. 

You could read our previous blog on why PCI compliance is compulsory for every payment gateway that process bankcard payments on e-commerce platforms.

If returning customers have tokenised their credit card details on your website, upon checkout, they will be only required to key in their CVV details instead of 16-digit credit card numbers, names and expiration date. 

New customers need to tokenise their credit card details, to be able to use the tokenisation feature for the next purchases.

Why use tokenisation?

1. Increase payment success rate

For most of the e-commerce business owners, the payment success rate is critically important, as it is one of the metrics to define whether your business is generating profits or losses. 

By tokenising, you will ensure that there are less steps during the checkout, which means that the customers will be able to complete their purchase faster. 

It also means that there will be less place for error to happen, e.g. customer entering wrong card number or misspelling the name.

2. Reduce fraud risk

Once the customer tokenised their credit card detail, upon checkout, they will only require to key in their CVV code. 

This reduces the risk of leaking customers’ private information especially when your customers are happily doing their online shopping in public places. Tokenisation usage examples:

  • Businesses keep their customer card details for subscriptions and billing,
  • E-Commerce enables their returning customers with a one-click checkout (direct link),
  • Mobile e-wallets (Boost, Vcash, iPay88 e-wallet)


Failure to make payments does not only hurt the user experience of your customer, but the chances of customer returns, are minimal. Failure to make payments can also be frustrating to you as a merchant.

To ensure that your customers experience a seamless payment experience during checkout, tokenisation feature should be enabled.

If you have not enable tokenisation feature in your e-Commerce website or mobile apps, do contact us now to enable it!

Learn more about payments in Malaysia
Check out the iPay88's blog for everything you need to know about payments.
Scroll to Top
Scroll to Top