Capital One Launches Data Security Solution Databolt

Capital One Software introduced a tokenization solution to help businesses address data security challenges.

Capital One Databolt is designed to let companies protect sensitive data at scale without sacrificing performance or speed, according to a Thursday (April 17) press release.

“In an era marked by increasing data breaches, complex data privacy requirements, and the adoption of generative AI, the need for robust data protection has never been greater,” Capital One Software President Ravi Raghu said in the release. “Traditional data security methods often fall short with limited scalability and added complexity. Tokenization [provides] next-level security as companies navigate a growing need to protect their data and prepare for an AI-first world.”

Databolt replaces sensitive data with secure tokens, reducing the risk that sensitive data is exposed during a breach, the release said. At the same time, Databolt preserves the underlying data format so that companies can still run applications, manage third-party data sharing and safely adopt generative artificial intelligence.

“At Capital One, we recognized the power of tokenization early on and built our own solution to meet the needs of a cloud-first enterprise at scale,” Raghu said in the release. “Today, we run more than 100 billion tokenization operations a month across hundreds of applications.”

The PYMNTS Intelligence report “Tokenization at Scale: Why More Retailers are Investing in the Future of Cybersecurity” examined the growing popularity of network tokens and payment tokens among businesses. Nearly 80% of small- to medium-sized merchants surveyed said they enabled one of the two types of tokens, with adoption reaching near-universal levels among higher-revenue merchants.

Meanwhile, the PYMNTS Intelligence report “The Tokenization Innovation Report: The Future of Security and Personalization” found that network tokens offered by major credit card networks are poised for even more growth.

For example, 77% of merchants not currently offering network tokens have plans to introduce them. Beyond that, 92% of payment service providers (PSPs) that already enable the technology plan to invest in further capability. Some of the key areas that merchants PSPs want to upgrade include digital wallet card payments, card-on-file payments and recurring payments.