Visa Inc., a financial services corporation facilitating electronic funds transfer throughout the world, has launched the first card-on-file (CoF) tokenisation in India in accordance with the new Reserve Bank of India guidelines which made encryption of sensitive card data mandatory.
Rolled out in India in collaboration with Juspay, a mobile-based online payment platform, the card-on-file tokenisation service will be operative across a myriad of e-commerce platforms such as MakeMyTrip and Bigbasket.
The new guidelines issued by the RBI come in light of ensuring safer online transactions for consumers to renew their confidence in digital payments and make for an easier and uncluttered transaction experience. This CoF tokenisation will help to reduce card holders’ anxiety concerning online transactions.
Appraising RBI’s move to approve the use of CoF tokenisation services, T.R. Ramachandran, group country manager, India and South Asia, Visa said that this move will revolutionalise the nature of digital payments across the country’s e-commerce platforms.
He further added that the CoF tokenisation will make for a more protected digital payment process, saying, “Having launched CoF tokenisation services in over 130 countries globally, we are confident of the technology’s ability to build a safe secure and seamless environment for digital payments.”
As the userbase for digital payment services continues to increase in the country due to a rapid gain in the number of people switching to digital payment over cash transactions, the card-on-file, according to Visa, will provide two key benefits — consumer and ecosystem security and an enhanced checkout experience.
Card tokenisation is a process of encrypting sensitive card data such as card numbers or CVV in the form of digital tokens which would be issued by the card service provider or payment network. Visa believes that the devaluation of sensitive card information will reduce the risk present in online transactions and the vulnerability of providing sensitive data to any payment intermediaries.
