Basis Theory is a data tokenization company that helps businesses collect, store and use sensitive information without spreading raw data across internal systems. As digital payments, online banking and embedded financial services expand, companies must manage card numbers, bank details and personal identifiers, which brings operational and regulatory risk. Basis Theory enables them to handle that data while limiting exposure, so they can build financial products without holding the information directly.
Founded to address mounting compliance and security demands in digital commerce, the company focuses on tokenization, vaulting and granular access controls. Instead of allowing sensitive data to move through multiple services and databases, it replaces that data with tokens that function inside applications, while the original information remains in a secure vault. This structure reduces the number of systems that touch raw data and lowers breach risk.
As more companies embed payments into their platforms, secure data handling becomes critical. Software firms, fintech companies and marketplaces now process financial data as part of daily operations, even though many were not built as financial institutions. Basis Theory provides infrastructure that allows them to meet compliance obligations without redesigning their entire architecture.
Rethinking Data Ownership and Access
Traditional payment integrations often require businesses to rely on third-party processors that store and manage customer data. While this reduces direct responsibility, it can restrict flexibility. Access may be limited, and switching providers can require customers to re-enter payment details, which creates friction.
Basis Theory offers a model in which companies retain control of their customer data while storing it in a secure vault. Because the data is tokenized, internal services use tokens instead of raw values. If a company changes processors or adds payment methods, it can do so without forcing users to start over.
Access to sensitive information is governed by granular policies that define who can retrieve specific fields and under what conditions. Audit trails document how information moves across systems, supporting compliance with standards such as PCI DSS. By separating storage from usage, businesses can build new products without expanding exposure.
Building for Developers from Day One
The platform is designed for developers who need tools that fit existing workflows. APIs and software development kits allow engineers to tokenize data at the point of collection, whether through a web form or mobile app. Information is vaulted immediately, limiting where raw data is visible.
Instead of passing card numbers through multiple services before reaching a processor, applications exchange them for tokens. Those tokens can be shared internally, logged or analyzed without exposing original values.
Documentation and sandbox environments reduce onboarding time and allow companies to launch features without lengthy compliance delays. The platform also supports large enterprises operating across regions, with access policies tailored to local regulatory requirements.
Enabling Embedded Finance
Embedded finance has become common in software platforms that now offer payments, lending or subscription billing. While this creates new revenue opportunities, it also requires handling financial data responsibly.
When a company processes payments, it handles cardholder data and other sensitive information. Improper storage or access can lead to fines and reputational harm. Basis Theory enables platforms to offer financial services without storing raw financial data in their own infrastructure.
For example, a marketplace can tokenize card details at sign-up and use tokens to trigger charges through a processor, while original card numbers remain vaulted. If the business later adds another processor, it can route transactions without asking customers to re-enter information. This portability helps startups and growth-stage companies avoid vendor lock-in.
Compliance Without Friction
Data security regulations span industries, from PCI DSS to privacy laws governing personal information. Meeting these standards can slow development and consume engineering resources.
Basis Theory reduces compliance scope by replacing raw data with tokens, so many internal services no longer process sensitive information directly. This can simplify audits and reporting.
The platform supports encryption, key management and detailed access controls. Policies restrict who can retrieve specific fields, and logs record each interaction for audit purposes. By abstracting sensitive data into tokens, businesses can experiment with new features or integrations without exposing underlying information.
Expanding Beyond Payments
While payment data is a common use case, the platform also supports tokenization of bank details, Social Security numbers and other personally identifiable information. This flexibility serves industries such as healthcare, insurance and financial services.
A healthcare application can tokenize patient identifiers and billing information, reducing the need to store raw data in multiple databases. Financial institutions can tokenize identity documents during digital onboarding, limiting exposure while allowing verification checks.
The broader vision treats sensitive data as usable without being exposed. Tokens act as stand-ins, enabling systems to operate normally while shielding underlying information.
Designing for a Data-Driven Future
As digital services expand, data flows through more integrations, from analytics tools to customer support systems. Each integration can create another potential point of exposure.
Basis Theory limits where raw data exists. When sensitive values are vaulted and replaced with tokens, downstream systems interact only with placeholders. If a logging or analytics tool is compromised, the exposed data holds no intrinsic value.
This architecture supports portability and ownership. Businesses that control tokenized data can migrate processors, add services or restructure infrastructure without disrupting customers. By embedding tokenization into application design from the start, companies treat data protection as foundational rather than an afterthought.
Colin Luce, CEO, Basis Theory
