This new experience is meant to ensure that the cardholder will not have to reach out to their wallet or remember any card details, if they have saved (tokenized) their card on the ecommerce merchant which supports this feature, NPCI said in a statement.
Tokenization is a simple technology to secure card transactions without sharing the clear or real card details with the merchants.
When a cardholder opts to save their card for a domestic ecommerce transaction, they authenticate the transaction through the card details (Card number, CVV, Card expiry date) as a one time activity followed by entering the OTP (two-factor authentication), the details are then Tokenized and saved with the merchant, NPCI said.
This safeguards the card details of the customer from cyber frauds as real details are not saved with the merchant.
The merchants live for CVV-less payments, for the subsequent transactions customer can complete the payment by just entering the OTP without the need to enter the CVV or other card details again, it said.
RuPay, the homegrown card network developed by NPCI, went live on Card on File Tokenization in 2021, in line with RBI’s guidelines, for its domestic ecommerce transactions to ensure better security for all its cardholders.The Reserve Bank of India (RBI) had made it mandatory for all credit and debit card data used in online, point-of-sale, and in-app transactions to be replaced with unique tokens. This added layer of security by way of tokenisation is expected to enhance users’ digital payment experience.
As per the RBI, tokenisation refers to the replacement of actual card details with an alternate code called the “token”. A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during the processing of the transaction.
“Our vision has always been to ensure effortless payments for all our RuPay cardholders without compromising on the security aspect. Having worked with the payments industry extensively for the implementation of Card on File Tokenization, which ensures utmost security of sensitive card information, now we are aiming at making the payment experience of a tokenized card seamless,” said Denny Thomas, head of RuPay in the press release issued by NPCI.
(With inputs from PTI and ANI)
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