This milestone has been achieved in line with reserve Bank of IndiaThe guidelines on COF tokenization, focusing on two key benefits – consumer and ecosystem security and an enhanced checkout experience, the company said in a press release.
“RBI’s move to allow COF tokenization has truly revolutionized digital payments on India’s e-commerce platforms,” said Sandeep Ghosh, Group Country Manager India & South Asia, Visa. “in recent months, Visa We have worked closely with our banking partners and merchants to enable technology as well as consumer awareness for seamless adoption of Card Tokens.
Ghosh said that it is actively engaged with all ecosystem partners to help solve visa implementation challenges.
Token trading has seen significant adoption among traders, with an increase of 4.5X over the past two months.
“We expect this momentum to continue in the coming months as the ecosystem moves to token payments,” he said.
RBI’s COF tokenization guidelines mandate the replacement of actual card data with encrypted digital tokens, which are then used to facilitate and authenticate transactions. This devaluation of sensitive card details reduces the risk and vulnerability of sensitive data, as only tokens are present in transit during the ‘in-rest’ and ‘in-use’ phases.
The guidelines are expected to enhance consumer confidence in e-commerce payments, ensure seamless transactions and give card issuers confidence to authorize a higher number of transactions.