As a SaaS platform with an embedded payment solution, increasing checkout conversions and reducing cart abandonment will likely be top-of-mind.

And, if you have recurring or subscription merchants on your platform, involuntary churn (due to lost, stolen, or expired cards) is probably a significant challenge.

Universal tokenization can offer a solution to both increase conversions and reduce cart abandonment and involuntary churn. But what exactly is tokenization? Is it right for your platform? And what are the associated costs?

In this article we’ll explain:

• How universal tokenization works
• What makes Fiska’s tokenization unique
• How to get started with tokenization
• How much tokenization costs
• Other benefits of working with Fiska

Prefer to talk to a tokenization expert? Book a no-obligation call now

How universal tokenization works

Tokenization works by capturing a customer’s card data and replacing it with a secure token. In the case of Fiska, we then pass the token back to our SaaS platform clients to use the same way they would use a credit card.

Additionally, Fiska’s Account Updater service ensures that when card information changes—such as after expiration or replacement—the token is automatically updated in the background, requiring no action from you (the SaaS platform) or your merchants. This keeps subscriptions and recurring payments flowing without any disruptions.

Tokenization is totally secure and eliminates the need to store sensitive card data. So you get all the advantages of having the card information to hand without having to maintain a secure platform or manage PCI compliance, which Fiska takes care of for you.

Universal tokenization is where a SaaS platform has a single token for a customer that can be used across all channels and merchants on its platform. This is how Amazon Pay and Shopify’s Shop Pay work; once you’ve shared your card details to buy from one merchant on their platform, you can buy from the rest with one click.

Tokenization in action: Uber

The Uber experience is made possible thanks to its flexible tokenization solution, which allows it to seamlessly embed payments into its app. This is how your card is automatically charged so you can simply step out of the car instead of fumbling for your wallet while traffic builds up behind you.

Here’s what happens behind the scenes:

1. Token is created: When a customer signs up to Uber, they enter their card details into the app. Uber then uses a tokenization provider to replace the card number with a unique token that links to the customer’s profile. For example, the original card number might be 4111 1111 1111 1111, but it becomes a token like TKN-987654321. Uber can then store this token without risking exposing sensitive data.

2. Token becomes the payment method: Each time a ride ends, Uber uses the customer’s token (TKN-987654321) to process the charge. For a SaaS platform with multiple merchants, this model allows you to securely manage recurring or one-click payments across various channels and use cases.

3. Account data kept up-to-date: If a customer’s card details change (e.g., due to expiration or loss), the tokenization provider updates the underlying card information linked to the token. Importantly, the token itself remains unchanged, ensuring uninterrupted billing flows. This eliminates the need for SaaS platforms to make any adjustments and reduces transaction failures, minimizing friction for merchants and their customers.

4. Token applied across channels: With universal tokenization, a platform like Shopify can facilitate seamless payments across its network of merchants. For example, when a customer buys a shirt from one retailer, their payment details are tokenized. If the same customer later purchases a pair of shoes from a different retailer on the platform, the token ensures they don’t need to re-enter their payment information. For a SaaS platform, this approach enables secure, multi-channel payments across multiple entities, making it easier to scale and integrate new services.

Three main benefits of unified tokenization

Tokenization is a secure way of storing customer payment information without storing the actual card data, making it simple to charge for subsequent purchases.

On top of that, it allows you to:

• Combat shopping cart abandonment with one-click payments

Tokenization makes it easy for software platforms to design a seamless payment experience. Everyone likes to buy things; no one likes to make a payment. So if you can remove the friction of having to enter an email address, shipping address, or (the worst part) credit card number, you create a faster, more enjoyable checkout process that encourages customers to complete their purchases.

• Reduce subscription and recurring payment churn with Account Updater

During a subscription, a percentage of cards will inevitably expire or get lost or stolen. When that happens, the billing cycle ends until someone updates the card. Tokenization automates the process. For example, Fiska’s tokens are tied to Account Updater services, which are provided by card schemes, like Visa and Mastercard, to keep cards on file up-to-date. If a card expires or is compromised, we will automatically update it without any action required by the platform, its merchant, or the end customer. So the subscription can continue without disruption.

• Earn your merchants’ trust with consistent, frictionless payment experiences

As a software company, your UX can make or break your business,

And, arguably, payments is the most critical touchpoint to get right. A poor payment experience can upend a great purchase journey. On the other hand, a great payment experience can boost your brand and give you a competitive advantage.

Tokenization makes it very easy to pay because you can charge a card without customers having to enter card or delivery details. Orders are completed in seconds, conversions increase, and your merchants have another reason to remain loyal to your platform.

Additionally, thanks to Shop Pay and Amazon Pay, consumers today are used to marketplaces offering a payment experience that traverses different merchants on its platform. Indeed, they will likely come to expect it. So, by supporting universal tokenization, you have the potential to establish your brand amongst consumers which will, in turn, drive more merchants to your platform.

What makes Fiska’s tokenization unique?

Tokenization has been around for a while and many providers offer it to one extent or another. The main difference with our solution is that it has been built with SaaS platforms in mind and can benefit you in the following ways:

Our solution is fully omnichannel

With Fiska, you can create a token via any channel, regardless of whether it was captured online or in person. For example, you may have a gym membership platform where people sign up for a subscription in person after a tour of the facilities. They might also buy a towel or goggles from the shop. During that first transaction, we tokenize the card and give you the token to use for subsequent payments, whether they’re in-person or making an online booking such as a one-off class or holiday sports club.

Alternatively, your platform might support retailers that want to process cross-channel returns. Traditionally, they’d need the customer to present the same payment method to process the refund. But, with Fiska, the entire payment experience is tokenized, so the customer simply has to prove their identity to get a refund.

You can support payment experiences that match Amazon and Shopify

In the past, platform-wide one-click payments were reserved for large platforms like Amazon and Shopify. But our solution enables small to medium-sized platforms to create experiences that compete with these large players.

Our universal tokenization allows you to share a token between all the merchants on your platform. So a customer only needs to share their payment and delivery details once to access one-click payments across every merchant on your platform. This exactly mirrors the experience offered by Amazon and Shopify and gives you a significant competitive edge, especially since we’re one of the only providers to offer universal tokenization in this way.

How to get started with Fiska’s tokenization

With Fiska, capturing card data and converting it into a token is straightforward and involves only a minimal additional integration. Once implemented, you can enhance your UX by sharing tokens across different merchants on your platform or creating a more customized payment flow.

As with all things, we recommend a phased approach. The first step is to launch tokenization, which can be done on day one. In that way, you start capturing and storing tokens, even if you don’t intend to use them yet. So, you’ll have the infrastructure in place if you later decide to launch a subscription service or share tokens across different users.

How much does tokenization cost?

The cost of tokenization is between 5 and 10 cents per transaction. It’s a one-time cost; even if the customer’s card details change, you’ll only be charged once. This investment is minimal compared to the value you can derive in terms of customer conversion, ease of use, and flexibility.

Other benefits of using Fiska

Fiska was created to serve SaaS platforms. We have a strong understanding of your needs and it’s important to us that our solution provides the technology and support you need to grow your business.

Below are just a few of the benefits SaaS platforms can expect when working with us:

Retain control over your branding and customer experience with a white-labeled solution

We understand that SaaS platforms want to control every aspect of their service, which is why we offer a fully white-labeled solution for both your merchant onboarding and payment experiences.

Instead of redirecting merchants and customers to a generic portal, everything is hosted within your platform and branded to match. This not only reduces friction and cart abandonment but also strengthens customer loyalty. By embedding a solution like tokenization, you provide added value and convenience, making it easier for customers to stay with your platform long-term.

Work with a partner that acts as your fractional Head of Payments

Navigating payments can be challenging, and you might not have the internal expertise to implement your solution without support. That’s why every one of our clients gets to work with a dedicated support team who’s with you throughout the process, from onboarding to go-live and beyond. No re-explaining your business, no switching between unfamiliar reps, and no disjointed support, just consistent service from people with a deep understanding of your business.

We’ll act as your Fractional Head of Payments, running workshops, helping you set priorities, and providing hands-on support to create roadmaps, design pricing models, and refine your UX. You choose how you communicate with us, and how often. We can set up a Slack channel, arrange monthly or weekly check-ins, or simply ad-hoc support whenever you need it.

We offer our SaaS partners level 1 support, which sits behind your support team. However, we are also happy to offer level 2 support and work directly with your merchants if needed. Either way, the relationship remains 100% yours.

Get started with Fiska in a matter of weeks with our unified payment API

Fiska is a tech-driven company. Our team of developers uses a modern tech stack, informed by our first-hand SaaS experience, to streamline our API integration across all channels. This helps reduce project complexity, costs, and time to market. It also allows you to easily expand payment features such as setting up card-present transactions as you grow because everything is managed from the same integration. With clear, user-friendly SDKs, you don’t need extensive payment expertise to get started and we’re always on hand to support you if you run into issues.

Importantly, we hold all the essential certifications, licenses, and partnerships with payment networks. We can securely capture and tokenize payment data across in-person, online, and mobile channels. And we handle all PCI DSS requirements, protecting you and your users from data breach liabilities.

Choose what and how you charge your merchants

Our business operates a revenue-share model and we only get paid when you do. So it’s in our interests that your payments are set up in the most profitable way for your business. Unlike other providers, we don’t dictate your pricing structure. We let you decide how best to charge your customers and we share a percentage of the revenue you generate.

Additionally, our pricing model is based on the standard interchange rates established by Visa, Mastercard, and their partners, which are open to audit at any time. This approach is transparent because you can see what you’re being charged on top of the interchange fee. In comparison, blended pricing only gives you the final figure, so you can’t see what markup the provider has applied.

Improve conversions and strengthen your brand with universal tokenization

As a SaaS platform operating in a competitive landscape, it’s vital you provide a consistently high standard that sets you apart. Fiska’s universal tokenization is a cost and time-efficient way of differentiating your platform. It allows you to support platform-wide one-click payments and keep recurring payment details up-to-date without having to worry about data security. In doing so, you’ll be delivering a service that matches the biggest platforms out there.

If you’re a SaaS platform and are interested in exploring tokenization, reach out and book a call with us.