Blockchain-Enabled Distributed Payment Card Tokenization System

Abstract

Payment card tokenization is a process that replaces sensitive card (Credit/Debit) information with a unique identifier or token. This token is used for transaction processing, reducing the risk of unauthorized access and fraud. However, the current landscape is dominated by a few centralized entities, such as Visa, Mastercard, functioning as Token Service Providers (TSP). To address this, we propose a blockchain-powered decentralized tokenization system where a smart contract generates tokens based on predefined criteria. Decentralization ensures the system’s robustness against attacks and offers transparent audit trails. Our prototype is built on the Ethereum platform, with smart contracts deployed on the Sepolia test network, allowing for performance evaluation and validation of the system’s efficacy.