Fintech firm Razorpay announced the launch of “Razorpay Token HQ,” a new multi-network Card-on-File tokenisation service for businesses. The tokenisation solution will allow the end-customers of these businesses to continue having a quick and hassle-free transaction experience by giving them the convenient option to save their card details in accordance with the new RBI guidelines.
Razorpay’s TokenHQ will work across all major card networks such as Mastercard, Visa and RuPay. According to a statement released by the company, most of the businesses tied with Razorpay’s platform for customer transactions will support the new tokenisation service.
The new guidelines issued by the Reserve Bank of India disallow businesses, payment aggregators and acquiring banks to store the customers’ sensitive card details. As per the guidelines, only card issuers and card networks are authorised to save the card information of the users while other businesses are mandated to adopt the card-on-file tokenisation service for easier transactions by December 31, 2021.
Card tokenisation is a process of encrypting sensitive card data such as card numbers or CVV in the form of digital ‘tokens’ that will be issued by card providers of cad networks. This will make online transactions safer and online customers less vulnerable to data breaches.
In the statement, Razorpay assured that merchants using payment gateways other than Razorpay can also use the TokenHQ solution to encrypt card information and route transactions through their current payment gateways.
Applauding RBI’s commitment to making digital transactions more secure in the country, Razorpay CTO and co-founder Shashank Kumar said that the new regulations will offer “tremendous opportunities for us to innovate and develop localised solutions that work well for Indian businesses.”
Moreover, Razorpay’s homegrown tokenisation service will allow small and big businesses to offer hassle-free and uncluttered payment experiences while ensuring that the card data of their end-customers is protected, he said.
