Thales webinar key takeaways – Tokenization today and the path forward

Tokenization has been part of the payments industry for more than a decade, yet many organisations are still navigating how to maximise its value. During the webinar hosted by The Paypers and Thales, The state of payment: Tokenization today and the path forward, industry experts explored how tokenization has evolved, what challenges continue to hinder adoption, and why the next phase of growth will depend on orchestration, collaboration, and strategic moves.  

The discussion brought together Esther Groen as moderator, Wendy Hompes, Global Head of Product Management Cards and Merchant Services - Wholesale Banking at ING, Cyril Villemin, VP Sales Europe at Thales Payment Services, and Lily Varon, Principal Analyst at Forrester.  

What numbers reveal about tokenization 

The conversation started with insights from a new Forrester research study commissioned by Thales, surveying over 500 senior decision-makers globally, with a strong European focus, and revealing a striking paradox: tokens are rapidly becoming a dominant payment credential. However, most issuers still treat tokenization as a tactical point solution rather than a core pillar of their payment infrastructure.  

Lily Varon presents the numbers that highlight the growing business case for tokenization. According to respondents, improving authorisation rates was the main driver behind tokenization strategies over the next 24 months, cited by 66% of organisations. This was followed closely by reducing fraud losses (65%) and meeting evolving scheme mandates and compliance requirements (62%). 

Despite these benefits, the panellists agreed that many organisations still view tokenization as an improved capability rather than a foundational component of payment infrastructure.  

The challenge is no longer deployment, but performance 

With tokenization adoption continuing to increase, organisations are discovering that launching a tokenization programme is only the beginning.  

From an acquirer’s perspective, Wendy Hompes explained that tokenization delivers measurable value when implemented effectively. Merchants can benefit from improved conversion rates, reduced costs, and fewer payment disruptions. However, these benefits depend on consistent performance across the entire payments ecosystem.  

Expired tokens, declined transactions, and inconsistent lifecycle management can quickly erode the expected gains. As Wendy noted, success requires alignment between acquirers, issuers, schemes, and merchants to ensure tokens remain active, updated, and functional throughout their lifecycle.  

This operational complexity remains one of the industry’s biggest challenges. The research reveals that many organisations continue to struggle with inconsistent or poor-quality payment data, making effective token management more difficult. At the same time, successful implementation often requires specialised expertise in cryptography, payment infrastructure, and scheme requirements, skills that remain difficult to source internally.  

As Cyril Villemin emphasized, tokenization is no longer a deployment challenge, but an orchestration challenge across increasingly fragmented payment ecosystems.  

Why hybrid operating models dominate 

As tokenization programmes mature, many organisations are rethinking how much of the capability should remain in-house. 

The webinar explored the rise of hybrid operating models, particularly across Europe, where businesses retain strategic control over core payment functions while relying on external partners for specialist expertise. Given the technical and regulatory complexity of tokenization, organisations increasingly recognise that building every capability internally may not be practical or cost-effective.  

The panel highlighted that tokenization requires spanning scheme rules, lifecycle management, cryptography, compliance, and infrastructure. For many organisations, partnering with specialised providers allows them to accelerate implementation while maintaining ownership of their broader payment strategy. 

Tokenization is becoming core payments infrastructure: practical recommendations for a token-centric strategy 

The panel converged on several actionable recommendations for organisations looking to move from tactical tokenization to a strategic, token-centric approach. 

Wendy Hompes offered three priorities from the merchant perspective: first, get lifecycle management right, as it’s the single biggest source of merchant pain; second, deliver consistent performance across schemes and channels; and third, provide better visibility and diagnostics capability when transactions fail. 

Lily Varon urged organisations to use the research as a diagnostic tool, not to benchmark against peers, but against what's possible. She recommended conducting an honest internal assessment of lifecycle management, orchestration, and data governance capabilities, then building a deliberate roadmap to close the gaps.  

Cyril Villemin emphasized the importance of stepping back from the implementation treadmill to make strategic architectural decisions, particularly around what to keep in-house versus what to delegate, before the next wave of complexity arrives.  

Ultimately, the webinar highlighted that the future of tokenization is no longer simply about replacing card credentials with tokens. Instead, it is about creating the infrastructure, governance, and ecosystem coordination required to support the next generation of digital payments, as tokenization is becoming core payment infrastructure. Organisations that develop a clear strategy today, and invest in the right capabilities and partnerships will be best positioned to capture the benefits of tomorrow's payment landscape.  

The article highlights the main discussion points, but the full webinar explores these themes in greater depth, including audience perspective and questions on tokenization adoption and implementation. To learn more, watch the full webinar recording here.  

Download the Forrester Thought Leadership paper: The State Of Payment Tokenization: Ambition, Complexity, And The Path Forward.

About the author

Paula Albu has experience in content writing and editing, as well as being a creative storyteller. As a Junior Editor at The Paypers, she investigates Web3 technologies along with the latest trends and regulations in banking and fintech. Paula is committed to turning complex industry topics into engaging, accessible content that resonates with readers and creates a meaningful connection. She is available via LinkedIn or at paula@thepaypers.com.