A tokenized card transaction is safer because the actual card details are not shared with the merchant during a transaction.
Leading payments and API banking solutions company, Cashfree Payments (Cashfree) today announced the launch of tokenization solutions, ‘Token Vault’ enabling merchants to save card network tokens effortlessly, while staying compliant with RBI guidelines. The company’s Token Vault Service offers both, saving tokenized cards and processing payments using tokenized cards as a single solution, eliminating merchants’ need to look out for multiple payment partners.
Card-On-File (COF) tokenization is the process of replacing sensitive card information like card number, card expiry with a cryptographically generated random string, referred to as the card token. A tokenized card transaction is safer because the actual card details are not shared with the merchant during a transaction. The generated card token can be used for processing payments, as a substitute to the actual card details like card number and card expiry and CVV. This eliminates the issue of loss of sensitive card information while making card payments.
The recent circular by Reserve Bank of India (RBI) on Tokenization states that neither the authorised Payment Aggregators nor the merchants shall store customer card credentials on their servers. Only the card issuing banks or the corresponding networks are authorized by the RBI to save customers’ card details. The deadline for card tokenization is December 31, 2021.
Akash Sinha, CEO and Co-Founder, Cashfree Payments said, “It gives us immense pleasure to launch Token Vault, which will help us to assist our entire customer base stay aligned with the RBI’s guidelines. The specifications have come at a critical time and will contribute towards sustained growth of a safe digital payments ecosystem in the country. Our tokenization solutions will help merchants save customers’ tokenized card details while enabling a quick and secure card checkout experience. At Cashfree, it is our focus to build innovative and effective solutions, to help provide multiple experiences under one roof.”
Cashfree is one of the certified and compliant payment tokenization service providers which works across all major networks like Mastercard, Visa and RuPay.
With over 50% market share among payment processors, Cashfree Payments today leads the way in online payments, vendor payments, e-mandate and bulk disbursals in India with Cashfree Payments Payouts. Recently, India’s largest lender, SBI invested in Cashfree Payments underscoring the company’s role in building a robust payments ecosystem. Cashfree Payments works closely with all leading banks to build the core payment gateways and banking infrastructure that powers the company’s products and is also integrated with major platforms such as Shopify, Wix, Paypal, Amazon Pay, Paytm and Google Pay. Apart from India, Cashfree Payments products are used in eight other countries including the USA, Canada and UAE.
Source: Business World