Paytm tokenises 28 million cards across Visa, Mastercard and Rupay; to purge saved data by June-end

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The RBI has permitted to offer tokenised card transaction services to all channels, such as near field communication (NFC), magnetic secure transmission (MST) based contactless transactions, in-app payments, QR code-based payments or token storage mechanisms, including cloud, secure element and trusted execution environment. At present, tokenised card transaction facilities would be offered through mobile phones or tablets only and will be extended to other devices later based on experience.

The Reserve Bank of India (RBI) has said before providing card tokenisation services, authorised card payment networks shall put in place a mechanism for periodic system audits, at least annually, of all entities involved in providing card tokenisation services to customers. The central bank also asked card issuers to ensure easy access to customers for reporting a loss of 'identified device' or any other such event, which may expose tokens to unauthorised usage.

The RBI has set a deadline of June 30 for companies to complete tokenisation. "The company has tokenised 28 million cards across Visa, Mastercard and RuPay in its effort to make online card transactions safe and secure for consumers. With this rapid pace, Paytm will be able to purge saved card data ahead of the RBI deadline," Paytm said.

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