What is a token service provider?
A token service provider, or TSP, is a company or system responsible for generating, managing, and storing tokens used in place of sensitive payment data.
What role do TSPs play in payments?
They sit between merchants, payment processors, and card networks to ensure that real card data is securely stored while tokens are used in transaction flows.
Why are TSPs important?
They enable secure payment processing while reducing PCI scope for merchants. They are a key part of modern payment security infrastructure.
Who operates token service providers?
Card networks such as Visa and Mastercard operate their own token services. Some payment providers also offer tokenization services within their platforms.
How do TSPs support compliance?
By removing the need for merchants to store sensitive data, they help reduce compliance requirements and lower the risk of non compliance penalties.