One97 Communications Limited (OCL), that owns the brand Paytm, on Monday said that it has now tokenized over 93 percent of the monthly active cards on the Paytm app. With this, the company has made significant progress in the card-on-file tokenisaton initiative by the Reserve Bank of India (RBI).
The company has tokenised 52.3 million cards across Visa, Mastercard and RuPay in its effort to make card transactions safer and drive convenience for consumers. This brings with it faster checkouts, as well as success rates that are at par or higher compared to saved cards, the company said in a statement.
With this, the company said it remains on track to meet RBI’s deadline to purge saved card data ahead of the RBI deadline.
Paytm spokesperson said, “We have made great progress in card-on-file tokenisation, with over 93 percent of monthly active cards on Paytm app tokenised. Being a leader in digital payments, we are aligned with RBI’s initiative to make online card transactions safe and secure for consumers.”
RBI’s card-on-file tokenisation mandate requires all online platforms to comply with the new initiative and make digital payments secure for citizens.
As per the RBI’s guidelines, all online merchants/ecommerce stores have to comply with the card-on-file
tokenisation feature by September 30, 2022.
Tokenisation is the process of turning sensitive data into 'non-sensitive’ data called "tokens". These tokens convert a debit or credit card holder’s 16-digit account number into a digital credential that can’t be stolen or reused.
This token — representing the customer's card data — is saved in the merchant’s payment system and processes the transaction.
When the card details are saved in an encrypted manner, the risk of fraud or compromised data gets reduced
(Edited by : Anshul)
First Published: Sept 19, 2022 3:45 PM IST
