Tokenization as a Prison: Why Apple Pay and Google Pay Killed Carding

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How the replacement of PAN with tokens made physical and online transactions inaccessible

Introduction: The End of the PAN Era​

As recently as 2019, a carder could buy a card, enter the number (PAN), CVV, and expiration date — and receive approval. Today, this model has been completely disrupted.

The culprit? Tokenization — a technology that replaced your real card number with a one-time token tied to a specific device and merchant.

Apple Pay and Google Pay aren't just "convenient wallets". They're digital prisons for carders, where every transaction is locked behind three locks: device, biometrics, and a dynamic CVV.

In this article, we'll explore how tokenization works, why it killed carding, and why even physical terminals are no longer vulnerable.

Part 1: What is Tokenization?​

Technical definition​

Tokenization is the process of replacing the Primary Account Number (PAN) with a token — a unique digital identifier that:

• Valid for one device only.
• Works with only one seller,
• Expires in 24-72 hours (in some cases).

Example:
Your card: 4571 7300 1234 5678
Apple Pay token for Starbucks: 6021 8900 9876 5432
Google Pay token for Amazon: 7032 9800 8765 4321
Both tokens are invalid outside of these contexts.

Part 2: How Apple Pay / Google Pay Works​

Three levels of protection​

1. Device: The token is linked to the unique ID of your iPhone/Android,
2. Biometrics: Fingerprint or Face ID is required for every transaction,
3. Dynamic CVV: Each payment uses a new CVV generated by the Secure Element.

Consequence:
Even if you get a token, without a physical device and biometrics it is useless.

Part 3: Why Carding Died​

Physical transactions​

• EMV chip now requires ARQC (Authorization Request Cryptogram),
• Apple Pay/Google Pay use dynamic authentication,
• Manual entry is blocked on 99% of terminals.

Statistics (2026):

• EMV card cloning success rate: <35 %
• Manual entry success rate: 45% (requires 3D Secure + biometrics).

Online transactions​

• 3D Secure 2.0 is now mandatory in the EU/US/Canada,
• Tokenization is even used on websites (for example, through Stripe),
• CVV is often replaced with a dynamic code from the bank's application.

Example:
Trying to use PAN on Amazon → system requires Apple Pay or 3DS OTP.

Part 4: Where else does the old PAN work?​

Limited Exceptions​

Platform	Conditions	Risk
Steam Wallet	Low amounts only (<$100)	High (but possible)
Razer Gold	Only with Brazil Non-VBV	Average
Mobile top-ups	T-Mobile, AT&T (без 3DS)	Short

But: Even here, PAN is gradually being replaced by tokens.
Steam is already testing Stripe Link with tokenization.

Part 5: The Future — and Why There's No Return​

EMV 3DS 2.2 и Beyond​

• Biometric authentication will become mandatory,
• Device Binding will link each card to a specific phone,
• Real-time Fraud AI will block transactions before they are completed.

Forecast:
By 2027, 85% of all transactions will use tokenization.

Conclusion: A token isn't a convenience. It's a prison.​

Apple Pay and Google Pay didn't just simplify payments. They rebuilt the entire financial ecosystem around trust in the device, not just card details.

Final thought:
The era of PAN is over. The era of tokenization is just beginning.
And in this new world, the key is not the data, but the device.

Stay informed. Stay adaptive.
And remember: in the world of tokens, the best strategy is understanding the system, not working around it.