What is a DPAN?

A Device Primary Account Number (DPAN) is a digital token that represents a cardholder's actual credit or debit card number (PAN - Primary Account Number) within a specific device, like a smartphone or smartwatch, and a digital wallet (such as Apple Pay or Google Pay).

Here's a breakdown of what a DPAN is and its significance:

Key Characteristics of a DPAN:

• Device-Specific: A DPAN is unique to the specific device on which the card is provisioned. If the same card is added to a different device, it will receive a different DPAN.
• Tokenized Representation: It's a substitute for the actual 15 or 16-digit PAN. This tokenization process replaces the sensitive card data with a unique, randomly generated number.
• Used for Digital Wallet Transactions: DPANs are primarily used when making payments through digital wallets via contactless (NFC) or in-app payments.
• Enhanced Security: The primary purpose of a DPAN is to enhance payment security. By using a token instead of the real PAN, the actual card details are not shared with the merchant or stored on the device in a directly accessible format.
• Dynamic Security Codes: Often, DPAN transactions are accompanied by dynamic security codes (cryptograms) that change with each transaction, further reducing the risk of fraud.
• Mapping to the PAN: The digital wallet and the card network securely store the relationship between the DPAN and the underlying PAN. When a transaction is initiated with the DPAN, the network can translate it back to the actual PAN for authorization and settlement.

Why are DPANs Important?

• Increased Security: DPANs significantly reduce the risk of fraud by preventing the exposure of the real PAN during mobile payments. Even if a device is compromised, the DPAN is less valuable to fraudsters than the actual card number.
• Contactless Payments: They enable secure and convenient contactless payments via NFC-enabled devices.
• Simplified In-App Purchases: They streamline the payment process for in-app purchases without requiring users to manually enter their card details each time.
• Tokenization Foundation: DPANs are a key component of payment tokenization, a broader security standard in the payments industry.

In essence, a DPAN acts as a secure, device-specific alias for your physical card number when you use digital wallets for payments. It adds a layer of protection by ensuring that your sensitive card information is not directly transmitted or stored during these transactions.