TokenEx, a supplier of cloud tokenization, revealed that it has raised $100 million in series B funding to advance its method of securing online transactions.
With the use of TokenEx’s platform, businesses may tokenize any structured data to securely exchange tokens for transmission and storage of the information, shielding it from threat actors in the event of a data breach.
The provider’s abstracted tokenization-driven data storage strategy can safeguard sensitive data from threat actors that have obtained access to internal systems.
What Does “Tokenization” Actually Mean?
Tokenization is the act of swapping out sensitive data with one-of-a-kind identification symbols that keep all of the material’s crucial information without jeopardizing its security.
Tokens To Stave Off The Inevitable
Breaches are a matter of when, not if, as hackers design threats that are increasingly more sophisticated. Even the best-prepared company will occasionally be unable to stop a breach. Data breaches increased from 1,108 in 2020 to 1,862 just last year, showing that businesses are having a harder time fending off sophisticated threat actors.
In 2022, cybercrime will reach a record level. Secure digital payments are urgently needed as a result of the surge in card-not-present transactions, which has been further fueled by COVID-19. TokenEx steps in at that point, according to founder and CEO Alex Pezold.
By preventing data from being kept on-site in a location that a hacker may find and access, TokenEx tries to offer an antidote to inevitable intrusions. It guarantees that if an attacker gains access to a system, they will be limited to seeing tokens, which are meaningless.
TokenEx collects information through managed file transfers or API requests before entering an organization’s internal systems. The sensitive data is then exchanged for nonsensitive data known as “tokens.”
These tokens can be sent to any API endpoint, adding an abstraction layer that protects against cyberattacks while also giving its customers more freedom, control, and interoperability, according to Pezold.
The Conflict With Payment Processors
The company operates in the $2.3 billion worldwide tokenization market, which is projected to grow to $5.6 billion by 2026 as more companies, retailers, and merchants try to safeguard their information as per kearyventurebeat.
The supplier faces competition from a wide range of businesses, including Spreedly, a payment environment where users may collect, save, and tokenize payments, which most recently raised $75 million in funding in 2019.
Additionally, it faces competition from companies that offer safe payment methods like Very Good Security, a tool for gathering and storing payment information that received $60 million in Series C funding in 2020.
Pezold claims that TokenEx differs from these providers due to the flexibility of their tokenization. The ability of TokenEx to tokenize any structured data set enables it to provide solutions for both payments and privacy, in contrast to the normal specialization of these businesses.
K1 Investment Management served as the project manager for TokenEx’s series B investment round. It was given the 2016 Metro 50 Award by the Greater Oklahoma City Chamber and recognized as the fastest-growing privately held company in the Metro 50.
K1 Investment Management.