Tokenisation is the newly introduced norm by the RBI that is intended to make digital payment safe, secure and more consumer friendly. It is the digital initiative which will bring more global players like Apple Pay and Google Pay to offer digital payment service in India.

This will bring more global players to service in India; the companies such as Apple pay will foot forward and Google pay that is till now servicing on Unified Payment Interface (UPI) will look forward to adding additional functionalities like card payment to their offerings.

“Tokenisation is the safe and secure digital payment system”

How does tokenisation work?

Tokenisation masks transaction through tokens, thus saving it from phishing. It saves the customers from providing their card details on the merchant site they don’t trust. It allows easy payment system along geographies without worrying about the information breaching and cyber attacks.

It is the norm that would be added by the various payment gateways like BillDesk, CCAvenue on their network. It thus saves you from real-time entering of the card details directly on the merchant sites. The payment gateway secures the transaction and saves the hectic work of customer’s information securing and preventing them from phishing or any attack.

Instead of entering card details on the shopping website, you just need to enter the details on the payment gateway such as CCAvenue that follow tokenisation norm. It thus prevents the, again and again, entering your card details on various merchant websites. This saves your personal data and prevents any further information breach. Merchants are there for providing products/services not for securing your information.

Recently, the payment processing giant, Mastercard, has welcomed the RBI move and said that it will make digital payment more safe and easy at a global scale. It seems to evoke the digital initiative and frame the digital payment in everyday utility, such as grocery shopping, fuel and other.

Tokenisation of a card is revoked at the customer ease, if you see any suspicious activity – revoke the transaction, rather than blocking the card and waiting for reissue.

Do we need to rebuild the whole online processing system?

No, nothing needs to be changed. Maximum merchant websites are already using the payment gateway – just the gateway need to add tokenisation support to their network. This will add customer trust and loyalty on the merchant sites.

It is a definite win-win situation, the customers will be worry-free for information sharing to different merchant websites. On another hand, the merchants will be less worried about the sensitive personal information of the customers to be leaked from the backend.

It is surely a life easier mode, in tokenisation sensitive information such as bank details, loan application, personal data, stock trading data and other is replaced by the symbolic or non-sensitive information or symbolic representation known as tokens. It is a secured framework with mapping back only possible through the secured tokenisation system.

Conclusion: Tokenisation is surely a win-win system that will help in bringing secured and user-friendly digital payment. It will add more digital payment in the daily legacy system and is also a step forward in the global transaction system. However, the digital payments majors need to inform and educate the masses about the benefits of tokenisation for its vast success.