Token provisioning is the process of issuing a digital token to a customer’s device or a merchant’s system. This process starts when a customer registers their payment card in a merchant app or digital wallet such as Apple Pay or Google Pay.

Card Token Provisioning Flow

Flow 1: Normal Provisioning

This is the standard provisioning flow where the user adds a card via the wallet app directly (e.g., opening Apple Wallet and adding a card manually). Because the wallet provider cannot fully verify the identity of the cardholder at this stage, the token is initially created as INACTIVE and requires step-up authentication (e.g., OTP via SMS or email).

Flow 2: In-App Provisioning

This is the provisioning flow initiated from the merchant’s mobile app via an “Add to Wallet” button. Because the user is already authenticated within the merchant’s app, the wallet provider treats this as a trusted flow, and the token can be directly activated without OTP step-up.

Further details: Visa Card Tokenization.