Secure card-on-file solutions will ensure a near similar customer experience for online purchases and smooth checkouts on payments
Payment industry stakeholders are working with the Reserve Bank of India (RBI) to develop solutions for smooth checkouts on card-based payments, starting January 2022, industry body Payments Council of India (PCI) said on Wednesday.
“The industry and PCI are working in alignment with RBI on possible secure card on file solutions which will ensure a near similar customer experience for online purchases whilst enhancing the security of the storage of card credentials of customers,” PCI said in a statement.
- Bad Bank to solve Rs 2 lakh crore bad loans, take NPAs off banks’ books; here’s how it will work
- Seen complete pass-through of rate cuts to fresh rupee loans of banks: RBI bulletin
- RBI will signal lift-off in interest rates through policy stance, prefers jump in bank credit to reduce liquidity surplus
The idea behind this is to ensure that customers paying online continue to enjoy the convenience of not keying in all their card details each time they make a payment.
At present, customers can choose to save their card details with payment aggregators (PAs) and payment gateways (PGs). That system of faster checkouts was expected to change next year with the regulator’s guidelines on regulation of payment aggregators and payment gateways kicking in.
On March 31, 2020, the RBI had issued a notification directing payment system providers and participants to put in place workable solutions such as tokenisation to enhance the security of storage of customers’ card credentials, within the framework of the relevant guidelines issued by the RBI. PCI said it has shared with the RBI the principles which can be adopted by the industry to develop such secure card on file solutions.
“We are working closely with the RBI on charting a roadmap of the possible solutions that could be adopted by the industry for securing the storage of raw card data. Solutions being worked upon would not require the customers to enter their card number manually every time they make an online purchase,” PCI said. The solutions will adhere to the security checks, controls and frameworks prescribed by the RBI, the association added.