NS NPCI The Token System (NTS) will support the tokenization of RuPay cards to further enhance customer security and provide a seamless shopping experience to consumers, NPCI said in a press release dated October 20, 2021.
How tokenization will work
According to the NPCI press release, the token will function as follows:
Based on the set of guidelines mandated by RBI, sensitive customer information is to be stored in the form of encrypted ‘tokens’ to help in secure transactions. These tokens then allow payments to be processed without disclosing customer details or allowing payment intermediaries to store customer data that could breach security and privacy.
“Card details of customers in RuPay Network Secure Vault will be completely safe and secure. With NTS, banks, aggregators, merchants and other recipients can authenticate themselves with NPCI and use tokens to help protect tokens. Can play the role of Requester. Reference number (Token reference on file) for all the card numbers saved. All these businesses can maintain their RuPay subscriber base by using TRF for future transactions initiated by their respective RuPay customers. This fully-proof and transparent system will ensure that there is no customer-sensitive information. Apart from enhancing security, the token will also help reduce friction in the payment process by providing a faster check-out experience to customers. will help.
Kunal Kalavatia, Head of Products, NPCI, said, “The RBI guidelines on card tokenization are meant to enhance the security of the digital payments ecosystem in the country. We believe that this unique card-on-file tokenization solution is not only for the customers but also for their customers. will protect confidential data. But it will further strengthen the overall digital payments environment.”
Others who have launched card-on-file token service
A few weeks back, 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 e-commerce platforms like Grofers, bigbasket and MakeMyTrip. Available on. .
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