PhonePe revealed a collaboration with Mastercard to implement comprehensive device tokenization across its payment gateway, enhancing both convenience and security for digital transactions.

Alongside this tokenization initiative, PhonePe has unveiled the Smart Pod, a comprehensive payment solution designed for merchants.

PhonePe Payment Gateway (PhonePe PG) has declared a strategic alliance with Mastercard, a worldwide technology leader in payment solutions, to introduce its Device Tokenization feature.

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Revealed during the Global Fintech Fest (GFF) 2025, this project incorporates Mastercard's network tokenization technology into PhonePe PG's merchant ecosystem, broadening secure payment alternatives for digital businesses.

This represents a major achievement in revolutionizing the purchasing process for countless consumers.

ixigo, among India's premier AI-driven travel platforms and the sole partner managing flight, bus, and train reservations on PhonePe, has incorporated PhonePe PG to provide millions of users with quicker and more protected card transactions throughout its applications.

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Through this implementation, users can now store their payment card information once within the PhonePe application and utilize it safely across all partner online retailers. This "store once, apply everywhere" functionality removes the requirement for users to continuously input their card information when making purchases on different websites or applications, establishing a seamless and connected shopping environment.

The technology combines Mastercard's international knowledge in protected tokenized payments with PhonePe's reach and retailer network, developing a single-tap purchasing process that advantages both consumers and companies. For retailers, this results in reduced abandonment rates and an enhanced customer experience, contributing to better conversion rates and customer happiness. The technology transforms saved payment methods from an individual merchant capability into a network-spanning function, establishing a consolidated shopping environment where protection and ease work together.

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Following recent regulatory changes, the Reserve Bank of India has authorized the use of alternative verification methods for digital transactions. This update allows customers to process payments through PhonePe's device tokens and authenticate them through biometric features on their devices, including fingerprint recognition or facial scanning, rather than inputting a one-time password. This development provides users with a secure, regulation-compliant, and smooth single-tap payment experience while upholding superior security protocols.