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In a major step towards making digital payments more secure and convenient, PhonePe Payment Gateway (PhonePe PG) has announced a strategic partnership with Mastercard. Together, the two companies are launching a new device tokenization solution in India.

This initiative was announced during the Global Fintech Fest (GFF) 2025. This solution integrates Mastercard's tokenization technology with PhonePe's extensive merchant network, providing customers with an even more secure and faster online payment experience.

What is Device Tokenization and Its Benefits?

Device tokenization is a technology that uses a unique digital token instead of a customer's card details (such as the card number). This ensures that the actual card details are not shared with any website or app, significantly reducing the risk of fraud or data theft.

This new system from PhonePe will provide a "save once, use everywhere" experience. This means that customers will save their card once on the PhonePe app and can then securely make payments using the same card on all partner websites or apps, without having to re-enter their card number.

Ixigo Becomes the First Partner
India's leading travel platform, ixigo, was the first to add this feature to its platform. Now, millions of users on the ixigo app will be able to book flight, bus, and train tickets with their cards in just one tap.

This solution by PhonePe and Mastercard is fully compliant with RBI regulations. Customers will now be able to confirm payments with their phone's fingerprint or face scan instead of entering an OTP. This will not only increase convenience but also strengthen security.

Benefits to both customers and merchants
This initiative will eliminate the need for customers to repeatedly enter card information. Merchants will benefit from increased conversion rates and reduced drop-offs.

PhonePe says this move will make the saved card system applicable across the entire network, rather than limiting it to a single website. This will create a unified commerce experience where convenience and security go hand in hand.

Statements from PhonePe and Mastercard
Ankit Gaur, Head of Payment Gateway and Online Merchant at PhonePe, said, "We are continuously innovating to make digital payments simple, fast, and secure. This partnership with Mastercard will further strengthen customer trust and merchant empowerment in India's rapidly growing digital economy."

He further added, "Device tokenization will enable merchants like ixigo to offer millions of users a reliable one-tap checkout experience, leading to improved customer satisfaction while complying with RBI regulations."

Satya Padhiyari, Vice President, Digital and Fintech, South Asia, Mastercard, said, "Mastercard's mission in digital payments is to shape the future of smart commerce through secure and inclusive technologies. This partnership with PhonePe will further accelerate India's digital transformation and strengthen consumer trust."

Nitin Gurha, SVP, Flights and Hotels Business, ixigo, said, "For us, customer experience is not just about booking tickets. This integration with PhonePe PG and Mastercard has made our payment process even faster, easier, and more reliable."

A New Chapter in Digital Payments
This partnership between PhonePe and Mastercard will usher in a new direction for digital payments in India. This solution will not only bring a secure, one-click experience for customers but also ensure higher conversions and better customer engagement for businesses. Additionally, this initiative will strengthen PhonePe's existing tokenization capabilities with Visa, further expanding the company's secure payment network across the country.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.