Card Tokenaisation
Banks, merchants race to meet card tokenisation deadline
The banks and merchants have asked their customers to tokenise their debit and credit cards ahead of the June 30, media reports said.
Several merchants have doubts about the readiness of the system to handle tokenisation and transaction volumes and fear disruption in consumer payments, said an ET report.
Among the large merchants which have gone live and are allowing their customers to tokenise their cards include Uber, Swiggy and MayMyTrip while others like Flipkart, Nykaa, Amazon are in the final stages of integration and are likely to start the process of tokenisation in the coming weeks.
Tokenisation is a process by which card details are replaced by a unique code or token, enabling the successful completion of online payments without revealing sensitive details.
RBI has directed all merchants to delete customer card details and use tokens or unique codes to complete purchase transactions. This will be applicable on all online points of sale, including apps.
While Indian banks and payment networks like Visa, Mastercard, and RuPay say they are ready with their tokenisation, large merchants are doubtful over the scalability of the payments network and the preparedness of the entire ecosystem.
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