One thing that has always bugged me about credit card hacking is that they’re so avoidable. Apple Pay and Android Pay are taking great steps toward avoiding them with the use of tokenization. “What is tokenization?” you ask. Well, put simply, tokenization basically means that for a transaction, instead of transmitting your actual payment information such as your credit card number and expiration date, data that represents your credit card info is transmitted instead.
The way I usually picture it is that tokenization is like a key that allows you to unlock payments with a given device. So you put in your credit card info, and that proves that you are indeed the cardholder.
