A tokenized payment system is one in which a customer’s sensitive payment details, for example the long number on their debit or credit card, is automatically replaced with a unique set of characters generated by an algorithm. This set of characters, known as a token, is used to verify and authorise a purchase. Since the customer’s original details aren’t transmitted during the process, they remain safe from digital theft. Even if the system is hacked and the tokens stolen, they cannot be used to make unauthorised transactions.