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NPCI launches tokenisation platform for RuPay cards: How it will work



NPCI launches tokenisation platform for RuPay cards: How it will work

National Payments Corporation of India (NPCI) announced the launch of NPCI Tokenization system (NTS) to support tokenisation of cards as an alternate to storing card details with merchants.

The NPCI Tokenization System (NTS) will support the tokenisation of RuPay cards to further enhance the safety of customers and provide a seamless shopping experience to consumers, NPCI stated in a press release issued on October 20, 2021.

How the tokenisation will work

As per the NPCI press release, this is how tokenisation will work:

Based on the set of guidelines that have been mandated by the RBI, sensitive customer information is to be stored in the form of an encrypted ‘token’ to help secure transactions. These tokens then allow payments to be processed without disclosing the customer details or allowing the payment intermediaries to store customer data that could breach security and privacy.

“The card details of the customers will be completely safe and secure at the RuPay Network Secure vault. With NTS, acquiring Banks, Aggregators, Merchants and others can get themselves certified with NPCI & 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. This fool-proof and transparent system will ensure no customer-sensitive information will get released. In 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,” stated the release.

Kunal Kalawatia, Chief of Products, NPCI said, “RBI’s guidelines on Card Tokenization is to enhance the safety of the digital payments ecosystem in the country. We believe that this unique Card-on-File Tokenization solution will not only safeguard customers’ confidential data but will also further strengthen the overall digital payments environment.”

Others who have launched Card-on-File tokenisation service

A few weeks ago, digital payments provider, Visa has launched its Card-on-File (CoF) tokenisation services in India in line with the recently issued RBI guidelines. According to a press release issued by Visa on October 6, 2021, the card-on-file tokenisation service has been launched in partnership with Juspay, India’s first CoF tokenization service, and is now available across ecommerce platforms such as Grofers, bigbasket and MakeMyTrip.
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