Paytm’s wholly owned subsidiary Payments Services has launched its card on file tokenization Facility. For its card-on token solution called Paytm Token Gateway, it has partnered with platforms like Myntra, ayoDomino’s, and payment gateways like Visa, Mastercard and RuPay, according to a press release issued by Paytm on Monday. The card-on-file token facility will be available to all Paytm consumers and merchants, the press release said. This is in line with the Reserve Bank of India guidelines, which states that the “Saved Cards” feature will no longer be allowed on merchant networks.

According to reserve Bank of India All merchants and e-commerce platforms will have to comply with the new card-on-file tokenization feature by December 31, 2021.

Praveen Sharma, MD & CEO, Paytm Payments Services said, “This ensures security, as the user’s card data is not shared with anyone. Our merchant partners can now offer their customers a seamless, secure payment experience. Huh.”

What do RBI rules say

As per RBI guidelines, all merchants and/or eCommerce stores will have to comply with the new card-on-file tokenization facility by December 31, 2021. Sensitive customer information should be maintained in the form of an encrypted token so that transactions can be kept secure, as per RBI regulations. These tokens then allow payments to be processed without disclosing consumer information or allowing payment intermediaries to keep it, potentially jeopardizing security and privacy.

How is tokenization secure?

Since the user’s card data is not shared with the retailer, tokenized card transactions are considered secure. Instead of a 16-digit number, tokenization allows the card details to be saved as a unique, immutable ‘digital token’. Only the issuing bank and associated network have access to the information. This also requires further authentication from the customer.

With this, e-commerce companies will make it easier for customers to tokenize debit and credit cards. Thus end customers can continue to make purchases through the saved card feature, which allows for faster checkout.

Others who have launched a card on file tokenization

National Payments Corporation of India (NPCI) announced the launch of NPCI Tokenization System (NTS) to support tokenization of cards as an alternative to storing card details with merchants. Click
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Digital payments provider, Visa has launched its Card-on-File (COF) token service in India in line with the recently issued RBI guidelines. According to a press release issued by Visa on October 6, 2021, the card-on-file token service has been launched in partnership with Juspay, India’s first CoF token service, and is now available on ecommerce platforms like Grofers, bigbasket and MakeMyTrip. Is. , read full story
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