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National Payments Corporation of India has joined hands with brands and aggregators such as bigbasket, Goibibo, MakeMyTrip, JioPay, Juspay, Paytm, and PhonePe to introduce a Tokenization facility supported by the recently launched NPCI Tokenization System (NTS). This facility will help millions of customers maintain the security of their card financial data for online transactions, as their RuPay card details will now be completely safe and secure in a secure vault within NTS
The facility will be supported by the recently launched NPCI Tokenization System (NTS). Tokenization will allow a seamless and convenient transaction experience with heightened data security.
Concepts
TOKENIZATION means customers can do online transactions without saving debit or credit card details. Details like the debit or credit card number, CVV number and expiry date will no longer be required for digital payments.)
National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organization for operating retail payments and settlement systems in India. NPCI has created
a robust payment and settlement infrastructure in the country.
The Process
Based on the set of guidelines that have been mandated by the RBI, sensitive customer information is to be stored in the form of an encrypted ‘token’ to help secure transactions. These tokens will then allow payments to be processed without disclosing the customer details or allowing the payment intermediaries to store customer data that could breach Security and privacy.
In addition to enhancing security, tokenization will also help in reducing friction in the payment process by providing a faster check-out experience to the customers. This collaboration will offer a unique and safe transaction experience for their customers.
NPCI’s Token Reference on File (TROF) service will help millions of RuPay cardholders, maintain the security of their financial data. The card details of the customers will be completely safe & secure at the RuPay Network Secure vault. With NTS, acquiring Banks, Aggregators, Merchants & others can get themselves certified with NPCI & can play the role of Token Requestor to help save the Token reference number (Token Reference On File) against all card numbers saved. All these businesses can maintain their RuPay consumer base utilizing TROF for future transactions initiated by their respective RuPay consumers. This fool-proof and transparent system will ensure no customer-sensitive information will get released. In addition to enhancing security, tokenization will also help in reducing friction in the payment process by providing a faster check-out experience to the customers.
A few weeks ago, digital payments provider, Visa has launched its Card-on-File (CoF) tokenisation services 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 tokenisation service has been launched in partnership with Juspay, India’s first CoF tokenization service, and is now available across ecommerce platforms such as Grofers, bigbasket and MakeMyTrip.
