India’s PhonePe has announced a collaboration with Mastercard to introduce a Device Tokenisation solution, revealed at the Global Fintech Fest (GFF) 2025.
The initiative integrates Mastercard’s network tokenisation technology into PhonePe PG’s merchant platform, enhancing secure payment options for online businesses.
ixigo, India’s AI-powered travel platform and exclusive partner for flight, bus, and train bookings on PhonePe, has already adopted the solution to enable faster and more secure card payments across its apps.
The new system allows customers to save their card once on the PhonePe app and use it securely across participating online merchants.
This “save once, use everywhere” feature removes the need to re-enter card details for each transaction, offering a consistent checkout experience.
By combining Mastercard’s expertise in secure, tokenised transactions with PhonePe’s merchant network, the collaboration aims to simplify the checkout process and reduce payment drop-offs for businesses.
It transforms saved card details from a single-merchant function into a network-wide capability, improving both convenience and security.
Following recent regulatory updates, the Reserve Bank of India (RBI) now permits alternative authentication methods for online transactions.
Customers can complete payments using PhonePe’s device tokens, authenticated through device biometrics such as fingerprints or facial recognition, instead of one-time passwords (OTPs).
This ensures compliance with RBI standards while enabling quicker, secure checkouts.
Ankit Gaur, Head of Payment Gateway and Online Merchants at PhonePe, said:
“At PhonePe PG, we are focused on making digital payments simpler, faster, and more secure. Our collaboration with Mastercard reinforces our shared goal to strengthen payment innovation, enhance trust, and support merchants within India’s growing digital economy.”
Satya Padhiary, Vice President of Digital & Fintech, South Asia at Mastercard, said:
“Mastercard is committed to shaping the future of digital payments through secure and scalable technologies. Our partnership with PhonePe aims to accelerate India’s digital transformation by providing merchants like ixigo with reliable and seamless transaction experiences.”
This initiative builds on PhonePe PG’s existing tokenisation capabilities with Visa, further broadening its secure payment infrastructure for merchants across India.
Featured image credit: Edited by Fintech News Singapore, based on image by capuchino777 and vector_corp via Freepik
