Replacing sensitive data with non-sensitive substitutes called tokens, or breaking text into tokens that AI models can process.
In payments and security, tokenization swaps a sensitive value, such as a card number, for a random token that is useless if stolen. The real data is stored in a secure vault, and only authorized systems can map the token back. Mobile wallets use tokenization so merchants never see your actual card number.
In AI, tokenization means splitting text into units called tokens, which may be whole words, parts of words, or characters, before a language model processes them. Model limits and pricing are often measured in tokens. In blockchain, tokenization refers to representing real-world assets, such as property or bonds, as digital tokens on a blockchain. The meaning depends heavily on context.
An AI model trained on vast amounts of text to understand and generate human-like language, code, and other content.
Mobile WalletAn app or phone feature that stores payment cards, bank links, or balances so users can pay with their phone.
PCI DSSThe Payment Card Industry Data Security Standard, a set of security requirements for any organization that stores, processes, or transmits card data.
Payment GatewayA service that securely captures and transmits payment details from a customer to the banks and networks that approve the transaction.
Token (AI)The basic unit of text a language model reads and writes, usually a word, part of a word, or punctuation mark.
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