National Payments Corporation of India (NPCI) announce the launch of the NPCI Tokenization System (NTS) that will support tokenization of cards as an alternative to storing card details with merchants.
The NPCI Tokenization System will support the tokenization of RuPay cards to further enhance the safety of customers and provide a seamless shopping experience.
NPCI’s Token Reference On File (TROF) service will help millions of RuPay cardholders maintain the security of their financial data.
Experts said that the card details of cardholders will be completely safe and secure at the RuPay Network Secure vault.
As per the set of guidelines that have been mandated by the RBI, sensitive customer information is to be store in the form of an encrypted ‘token’ to help secure transactions.
These tokens then allow payments to be processe without disclosing the customer details or allowing the payment intermediaries to store customer data that could breach security and privacy.
By NTS, acquiring Banks, Aggregators, Merchants and others can get themselves certified with NPCI and can play the role of Token Requestor to help save the Token reference number (Token Reference On File) against all card numbers saved.
All these businesses can maintain their RuPay consumer base utilizing TROF for future transactions initiated by their respective RuPay consumers.
Kunal Kalawatia, Chief of Products, National Payments Corporation of India Said :
“RBI’s guidelines on Card Tokenization is to enhance the safety of the digital payments ecosystem in the country. NPCI Tokenization System (NTS) for tokenization of RuPay cards will instil further trust in the millions of RuPay cardholders to carry out their day-to-day transactions securely. This unique Card-on-File Tokenization solution will not only safeguard customers’ confidential data but will also further strengthen the overall digital payments environment.”
NPCI claims this system will ensure no customer-sensitive information will get release.
By addition to enhancing security, tokenization will also help in reducing friction in the payment process by providing a faster check-out experience to the customers.
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