Card tokenization makes your festive buying more secure, convenient


Diwali sales ramp up as the festival day nears. Everyone will be in a shopping frenzy to buy gifts and other specials for their loved ones.

At the same time, there is another group that is busy in the backdrop. They are none other than fraudsters. They ensure that they never pass up any opportunity to cheat unsuspected shoppers who shop cashless without appropriate safety.

These crimes have been a blight in the cashless payment ecosystem of the country, deterring many potential users from embracing it wholeheartedly. As a result, only the so-called risk-taking demographic of 18-35 are the main users.

Rest either didn’t embrace it completely or are not confident enough to use it.

To increase security and attract more users, especially in the field of card payment, the National Payments Corporation of India (NPCI) has introduced measures without making it complex for the users.

One such measure is card tokenization. For that, the NPCI has launched NPCI Tokenization System or NTS for short. Right now, it is only available for RuPay cards.

According to this new system the card data is converted into random alphanumeric tokens. These tokens never contain any sensitive information related to the users.

They are just route maps showing where the information is situated in the bank’s system, and can only be opened by the payment processors. Even if hacked, it is useless since it does not contain any monetizable data.

Ravi Battula, the Head Merchant Acquiring Solutions of Wibmo, is confident in the new system. He says that it is a great boost to the cashless payment ecosystem in India from the NPCI.

He added that it addresses both security and innovation questions in the cashless system.

Other than NTS, RuPay cards are now promoting contactless payments, by bringing up Tap and Pay cards, which they hope will be boosted by tokenization.

The demonetisation drive had pushed the cashless system and even forced the MSMEs to embrace it.

The pandemic also showed the importance of cashless and contactless transactions through the medium of cards and UPI in a situation where going out or coming in contact was limited.

Battula continues to express his high hopes in the new cashless ecosystem since it started to be adopted outside the urban spaces, with young customers and local merchants of the rural regions adopting it.

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