Overview
Tokenization is a secure payment method that replaces sensitive card information with a unique digital identifier, or token. This allows merchants to securely store payment credentials and offer a faster checkout experience for returning customers.
Compared to standard payments, tokenization offers significant improvements in security, user experience, and merchant operational efficiency:
- Enhanced Security: Sensitive card numbers are not stored in the merchant's system. Instead, they are managed in an encrypted form by the payment platform, effectively reducing the risk of data breaches.
- Smoother User Experience: A token is generated after the user's first payment, enabling "one-click payment" for subsequent purchases and eliminating the tedious process of repeatedly entering card information.
- Facilitates Repurchases and Subscription Business: The token can be used for recurring deductions, automatic renewals, or quick repurchases. This is particularly suitable for high-frequency scenarios like gaming, streaming media, and tool subscriptions.
Simply put, integrating token payments helps merchants improve payment success rates and user retention while ensuring security. It is a crucial step for upgrading from "single payments" to "continuous payments."
User Flow
| Scenario | First Payment | Subsequent Payment (Token Payment) |
|---|---|---|
| Cashier Mode | Redirect to the Checus Cashier page to select a payment method, enter card details/payment elements, and complete the payment. | Use the Token generated from the first payment. The user can complete a one-click payment without re-entering payment information. |
| Pure API Mode | Submit a payment request via API, specifying the payment method and payment elements to complete authorization. | Initiate the payment using the saved Token, without submitting the card number/sensitive information. |
| Frontend Component Mode | Embed the payment UI provided by Checus onto the merchant's page. The component renders the payment method and collects payment elements to complete the payment. | Use the Token to directly trigger the payment process. The component is only responsible for selection and confirmation, without requiring card information to be re-entered. |
The first payment can be completed and the Token generated using any of the integration modes; subsequent payments can be directly initiated using the Token, which streamlines the operation process and enhances the payment experience and security. Token payment only supports CARD payment methods.
We will demonstrate the user flow for you using the Drop-in Component Mode integration method.
