RBI has decided to extend the scope of tokenisation to include consumer devices – laptops, desktops, wearables (wristwatches, bands, etc.), Internet of Things (IoT) devices, etc.
Previously this facility was available only for mobile phones and tablets of interested cardholders. There has been an uptake in the volume of tokenised card transactions during the recent months, the RBI said in a notification.
The case for tokenisation has been increasing as the new norms around the Payment Aggregator and Payment Gateway norms bar payment aggregators, payment gateways and merchants to store card data on their server.
Customer would have to manually enter the card details once the guidelines come in force, whereas currently merchants store card details on their server allowing seamless payments. This programme will make card transactions safer, more secure, and more convenient for users.
However, Payments Council of India (PCI) the umbrella body for payment companies, in a release on August 25 said that customer will not have to remember their 16 digit card number for payments effective from January 2022.
With this the effectiveness, many are expecting the transaction over UPI to get increased, as it is cardless transactions. UPI processed a record 3.24 billion transactions in July up 15.7 per cent from June when it processed 2.8 billion transactions. In value terms, in July, the platform processed transactions worth Rs 6.06 trillion, up 10.76 per cent from June.
