The advantage of this would be that the customer would need to fill in the card details every time during the transaction. Tokenization concept was implemented for this. Visa is the first card issuer which has taken this step regarding tokenization.
National Payment Corporation of India (NPCI) has announced the launch of token system for RuPay card. NPCI says that the security of RuPay card will be increased with the introduction of the token system. Transactions can be made more secure with RuPay card. Rupay card is India’s own payment service provider and its facilities are provided in almost all banks of the country. NPCI has issued RuPay card only.
NPCI runs its own Tokenization System (NTS) with the help of which the facility of tokenization is given to the banks. Tokenization is an alternative arrangement in which the card information of banks is stored with the merchant. Here merchant means business where the user uses his card in the work of transactions. NPCI says that the introduction of tokenization system in RuPay card will ensure the safety of customers and they will be able to enjoy shopping without any hassle.
Card information will be in encrypted form
According to NPCI, following the guidelines of the Reserve Bank, all customer information will be stored in the form of encrypted tokens so that there can be no fraud in the transaction. Payment will be allowed only through this token and for this the customer will not need to provide any card related information such as account number, card number or PIN. With the introduction of the token system, payment intermediary companies (such as mobile wallets) will not be able to store customer card details.
Now no need to give pin number
After the launch of NTS, the bank, aggregator, merchant or other payment service provider will be certified by NPCI and they will be able to save the token instead of storing the card details. All businesses will use RuPay Consumer Token Reference on File (TROF) for any next transaction. As soon as a customer gives his RuPay card for a transaction, the companies will complete the transaction on the basis of his token reference. This entire system will be full proof and no sensitive information of the customer will be leaked in it. With this, the transaction will also be faster because you will get rid of the hassle of giving PIN etc.
What is tokenization system
Recently, digital payments company Visa has launched COF token service in India. Visa’s card token service is currently available on e-commerce platforms like Grofers, BigBasket and MakeMyTrip. On these platforms, customers are not required to provide their card details. Under the tokenization service, the customer’s card details are converted into digital tokens in encrypted form. With this, the customer’s data is also safe and the transaction is also verified. This significantly reduces the chances of theft of the customer’s card data and makes the transaction much safer and faster.
Recently, the Reserve Bank of India had issued a guideline keeping in mind the incidents of cyber attacks and data theft. According to this, no e-commerce company or online company will save the customer’s card data. The advantage of this would be that the customer would need to fill in the card details every time during the transaction. Tokenization concept was implemented for this. Visa is the first card issuer which has taken this step regarding tokenization.
