the card-on tokenisation solution, was launched by Paytm Payments Services for all Paytm consumers and merchants this week. According to the company, a wholly-owned subsidiary of Paytm, the new facility is named Paytm Token Gateway, under which it has partnered with several platforms like Domino’s and Myntra and payment gateways like MasterCard, Visa and RuPay.
“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,” Praveen Sharma, Managing Director and Chief Executive of Paytm Payments Services said.
Tokenised card transactions are considered to be safer since it does not share the user’s card data with the retailer. Instead of the 16-digit number on the card, details are saved as a unique ‘digital token’ and the information can only be accessed by the issuing bank and the affiliated network. It further ensures security and privacy by requiring additional authentication from the customer.
Over the recent months, several other organisations in India have also launched this card-on-file tokenisation feature. In early-October, Visa announced the launch of its Card-on-File (CoF) tokenisation services in the South Asian nation, in line with the guidelines issued by the RBI. The service was launched by the digital payments provider in partnership with India’s first CoF tokenization service Juspay. A few weeks later, the NPCI Tokenization system (NTS) was launched by the National Payments Corporation of India (NPCI), with the aim of supporting tokenisation of cards as an alternative to storing card details with merchants.
