Tokenization is the act of replacing sensitive data in your company systems with an unreadable token and securely keeping the original data in a cloud data vault.

A tokenization platform’s purpose is to remove any original sensitive payment or personal data from your business systems, replace each data set with an unbreakable token, and keep the original data in a safe cloud environment apart from your business systems.for example, secures cardholder data in banking. Only the original credit card tokenization system can swap the token with the corresponding primary account number (PAN) and submit it to the payment processor for authorization when you process a payment using the token stored in your systems.