The National Payments Corporation of India (NPCI) on October 20 announced the launch of the NPCI Tokenisation system (NTS), which will support tokenisation of cards as an alternative to storing card details with merchants.
The NTS will support the tokenisation of RuPay cards to enhance the safety of customer data and provide a seamless shopping experience to consumers, the NPCI said in a release.
Based on guidelines mandated by the Reserve Bank of India (RBI), sensitive customer data will be stored in the form of an encrypted ‘token’ to help facilitate secure transactions. These tokens will allow payments to be processed without having to disclose customer details to merchants or letting payment intermediaries store information that could breach security and privacy.
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The NPCI’s Token Reference On File (TROF) service will help millions of RuPay cardholders maintain the security of their financial data. The card details of the customers will be completely safe at the RuPay Network Secure vault.
With the NTS, acquiring banks, aggregators, merchants, and others will be able to get themselves certified with the NPCI and function as the token requestor to help save the token reference number (token reference on file) against all the card numbers saved.
All businesses will be able to maintain their RuPay consumer base using TROF for future transactions initiated by their respective RuPay consumers.
Not only will this fool-proof transparent system ensure the safety of customer-sensitive information, but it will also help in reducing friction in the payment process by providing a faster check-out experience to the customers.
Speaking about card tokenisation, Kunal Kalawatia, Chief of Products, National Payments Corporation of India, said: “RBI’s guidelines on card tokenisation is to enhance the safety of the digital payments ecosystem in the country. We are confident that the NTS for tokenisation of RuPay cards will instill further trust in the millions of RuPay cardholders to carry out their day-to-day transactions securely. We believe that this unique card-on-file tokenisation solution will not only safeguard customers’ confidential data but will also further strengthen the overall digital payments environment.”
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