Card tokenization makes your festive buying more secure, convenient

By: |
November 01, 2021 7:47 PM

Along with the festive buyers, fraudsters are also busy to ensure that they don't miss any chance to defraud unsuspected consumers as they make cashless payments without following proper security protocol.

Diwali, festive buying, cashless payment, demonetisation, Covid-19 pandemic, NPCI, cyber fraud, Card tokenization, Rupay cardholders, contactless paymentTo protect the consumers and to keep the fraudsters at bay, the NPCI is trying hard to make cashless payments more secure without making the process complex.

With just two days left, frenzied buyers are in a hurry to complete the Diwali shopping for near and dear ones and for gifting as well. Along with the festive buyers, fraudsters are also busy to ensure that they don’t miss any chance to defraud unsuspected consumers as they make cashless payments without following proper security protocol.

To protect the consumers and to keep the fraudsters at bay, the National Payments Corporation of India (NPCI) is trying hard to make cashless payments more secure without making the process complex.

To ensure convenience and security, the NPCI has introduced the concept of card tokenization, by de-identifying sensitive cardholder data by converting it to a string of randomly generated numbers called ‘token’.

“This is another great shot in the arm for Indian payments from the NPCI to address consumer security while driving innovation for the subscription economy where recurring payments are the norm across merchant-initiated and customer-initiated transactions,” said Ravi Battula, Head Merchant Acquiring Solutions, Wimbo.

However, only the Rupay cardholders will enjoy the benefit of tokenization, which would also promote contactless payments.

“Tokenization is the foundational bedrock to power recurring payments enabling customers to securely store the Rupay card credentials with solid governance for transparently managing (start, stop, modify) their subscriptions for online card-on-file payments. Also, with growing contactless payments, tokenization will propel the adoption of device Tap and Pay card-present payments using multiple form factors beyond the phone,” said Battula.

E-RUPI: How will it affect the payment system in India?

The demonetisation drive had propelled the cashless system and forced even the small vendors to adopt it to survive. During the Covid-19 pandemic, people realised how important it is to make cashless and contactless payments to survive the tiring period of strict lockdown.

“During the pandemic, consumers realised the convenience and security of contactless payments, which is only slated to grow further for day-to-day shopping or transit or commute use cases and more not only in Tier 1 and Tier 2 cities but across the hinterland,” said Battula.

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