While the card issuers, merchants, fintech companies and other stakeholders of the card payment system toiling hard to meet the tokenisation deadline of September 30, 2022, set by the Reserve Bank of India (RBI), you may also face problems in card payments from October 1, if no action is taken on the existing auto-payment mandates.
To ensure continuance of auto payment of your bills and seamless payments on merchant networks, you need to opt for tokenisation to continue with the benefits. Else, you have to keep in mind the due dates of each bills and key in the card details every time to make payments.
In fact, you may have to repeat the tokenisation process once a card is reissued after its expiry.
“With the deadline to comply with the Reserve Bank of India’s (RBI’s) card-on-file and tokenisation norms fast approaching: The entire ecosystem – issuers, acquirers, merchants, aggregators, fintechs, PSPs – has gone through a herculean effort towards compliance, shaking up over two decades of card processing set up at an unprecedented scale across the world. While the readiness for most straightforward use cases of card-on-file tokenization would be ready,” said Ravi Battula, Vice President – Merchant Acquiring Business, Wibmo – A PayU Company.
“Post-tokenisation use cases for token and card life cycle management readiness are far from optimal level, e.g., card getting expired or card getting renewed or user suspending token through his/her bank and again resuming it. These use cases will provide some friction points for merchants, consumers, and issuers, but they will eventually be ironed out. We can foresee a jump in customer/support care by cardholders for these use cases, where issuers and merchants should equip themselves to address such scenarios. The challenge for token and card lifecycle is due to the proprietary handling by the respective card networks, which adds to the complexity in the ecosystem to bring in consistency,” he added.
“Subscription SI payments would be another area where we can expect some friction due to the distinction in tokens for COFT vs SI transactions. In such large-scale initiatives, there will be some kinks that will eventually be addressed. In the long run, tokenisation will be a key enabler, propelling the digital payments explosion with all the required guardrails,” Battula further said.