PhonePe tokenized 14 million debit and credit cards

PhonePe tokenized debit and credit cards: PhonePe announced that it had tokenized 14 million credit and debit cards on its network in accordance with the RBI's guidelines for data security.

PhonePe tokenized debit and credit cards: PhonePe announced that it had tokenized 14 million credit and debit cards on its network in accordance with the RBI’s (Reserve Bank of India) guidelines for data security. Since the exercise began in December 2021, the Walmart-backed company claims to have tokenized more than 80% of its active users’ cards.

Bank Maha Pack includes Live Batches, Test Series, Video Lectures & eBooks

PhonePe tokenized debit and credit cards: Key Points

The new term “token” to be used in the place of the actual card number with tokenization.
The real card details are not disclosed to a merchant during transactions, a tokenized transaction is safer and less likely to result in data leakage.
PhonePe stated that it is collaborating with Visa, Mastercard, and RuPay, three of the largest card networks, to meet the regulator’s September 30 tokenization deadline.
Since April of this year, when the company began processing token-based transactions, almost all eligible transactions are handled by tokens.
The success rate of transactions processed via tokens on PhonePe has shown an improvement of around 2 per cent in comparison with card-based transactions.
The RBI delayed the card-on-file tokenization deadline in July till September 30 since token-based transaction processing had not yet gained traction. It was the third and maybe final one of its kind.
The RBI had stated that the industry should make use of the additional time to help all stakeholders get ready to handle tokenized transactions while extending the deadline.
Many other payment platforms had developed tokenization solutions following the RBI’s mandate on storage of card details.
PayU, an online payment solution provider, launched “PayU Token Hub”, which offers both network tokens and issuer tokens under a single hub. “Razorpay TokenHQ,” a multi-network card-on-file tokenization solution, has been created by Razorpay.
The National Payments Corporation of India (NPCI) is working with brands and aggregators to create a tokenisation option.