Paytm launches card-on-file tokenisation with Myntra, Oyo, Dominos for online transactions

Payments Services, a wholly-owned subsidiary of Paytm, has launched its card on file tokenisation facility. For its card-on tokenisation solution called Paytm Token Gateway, it has partnered with platforms like Myntra, Oyo, Domino’s, and payment gateways like Visa, Mastercard, and RuPay, according to a press release issued by Paytm on Monday. The card-on-file tokenisation facility will be available for all Paytm consumers and merchants, stated the press release. It is aligned with the Reserve Bank of India’s guidelines which said that the “saved cards” feature won’t be allowed on a merchant network anymore.

According to RBI rules, all merchants and e-commerce platforms must comply with the new card-on-file tokenisation feature by December 31, 2021.

Praveen Sharma, MD and CEO of Paytm Payments Services said, “It ensures safety, as a user’s card data are not shared with anyone. Our merchant partners can now provide their customers with a seamless, secure payment experience.”

What the RBI rules states

As per RBI guidelines, all merchants and/or eCommerce stores have to comply with the new card-on-file tokenization feature by December 31, 2021. Sensitive client information has must be maintained in the form of an encrypted token to aid protect transactions, according to the RBI’s set of rules. These tokens then let payments to be processed without disclosing consumer information or allowing payment intermediaries to hold it, potentially jeopardising security and privacy.

How is tokenisation safer

As a user’s card data are not shared with the retailer, a tokenised card transaction is considered safer. Instead of a 16-digit number, tokenisation allows the card’s details to be saved as a unique, irreversible ‘digital token.’ Only the issuing bank and the affiliated network have access to the information. It also necessitates further authentication from the customer.

This will allow e-commerce companies to offer customers the ease of tokenising debit and credit cards. End-customers can thus continue to shop via the saved cards feature, which allows faster checkouts.

Others that have launched card on file tokenisation

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. Click
here to read the full story.

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. Read the full story
here.