No Debit, Credit Card Needed For Online Payments From This Date: You Need Only ‘Tokens’

Online shopping becomes more easy and reliable as now you can pay on various e-commerce platforms without using your credit card or debit card. 

Online Shopping With Tokenization

Thanks to ‘tokenization’ as it was recently introduced by the RBI.

Basically, it is a method which will let you complete your transactions without your cards.

This will definitely change the way we shop through credit or debit cards on different websites such as Amazon, Flipkart, Myntra, BigBasket from January 1, 2022. 

Now, there is no longer any need to save the 16-digit card number and the card expiry date on the merchant website.

With the use of ‘tokenization’, one can easily make a card payment, according to the Reserve Bank of India’s (RBI) mandate. 

How Does Tokenization Work? 

The CEO and co-founder, Cashfree Payments, Akash Sinha said,“The process of tokenization is simple as it requires replacing the card details with a token. This ensures that the transactions are seamless without exposing the customers’ confidential data. The tokenization framework by RBI guides us on how these solutions are to be conceptualised and deployed. On the backend, the card’s CVV number will no longer be required for digital payments making the entire system safe and secure,”.

Cashfree Payments is a payment disbursal platform used by businesses to do bulk payouts. 

At the user’s end, nothing changes. 

We simply need to enter the card details and opt for tokenization while making online transactions at the check-out window of the shopping portal.

Now, merchants will have to forward the token to respective banks or the card networks. 

Basically, a token is produced and sent back to your merchant, which then, at that point, saves it for the end-customer. 

It is noteworthy here that customers don’t have to recall the token as the experience is not going to change for them while making digital payments. 

The Tokenization is absolutely free for users. 

They can tokenize any number of cards. 

Presently, only domestic cards fall under the current guidelines as it is not applicable to international cards as of now. 

How Does Tokenization l Help?

With all the digitization, consumers need safety and security at all the places they shop. 

Coming to Tokenization, it helps in shielding businesses from the negative financial impact of data theft. 

Even if there is a breach, the merchant would not have important data that can be stolen. 

Although, Tokenization can’t shield your business from an information and data breach. 

But, it can diminish the chances of any possible breach.  

For managing the tokens, Issuer bank will provide a dedicated portal (on its own bank’s website).

Beside this, the cardholders will also have the convenience to delete tokens when they want to.