Mastercard announces availability of Tokenization services for e-commerce merchants and aggregatorsOctober 25, 2021 | India
Mastercard On-boarded major aggregators – Juspay, Paytm, PayU, and Razorpay to extend services to entire merchant ecosystem
Mastercard today announced the availability of tokenization services for ecommerce merchants and aggregators, to help them align with RBI’s recent guidelines on card-on-file tokenization.
To comply with the guidelines and offer a secure seamless checkout experience for cardholders. Mastercard has already onboarded major payment aggregators such as Juspay, Paytm , PayU and Razorpay . Over 2 lacs e-commerce merchants are expected to comply with the RBI guidelines and replace consumer card data in their databases with a token. These merchants have been provided with options to either integrate on Mastercard's network directly or integrate with their own payment aggregators to roll out tokenized credentials to over 10 crore active online card consumers. Mastercard is also working with all the major Issuer banks and acquirer banks to ensure their overall readiness to scale up for the impending 31st December 2021 RBI deadline.
Card tokenization is a process of substituting sensitive card data (such as card number, expiry etc.) with a random 16-digit number called token (in encrypted format). What makes this type of token unique is that it can be used just like a normal card for online payments, but only by the merchant that has requested it. This means that, if a rogue agent does manage to access a token, it remains inaccessible to him as it was not requested for by him. For the sake of identification and reconciliation, RBI has permitted merchants to display the last 4 digits of the original card number to the consumers.
Consumers can now save their card details with online merchants in a safe and secure environment and transact without the hassle of entering physical card details every time for all online and e-commerce payment use cases.
Globally, Mastercard is an early adopter of card-on-file tokenization and continuously focuses on introducing technology that brings simplicity and safety to cardholders, every time they pay. So far, Mastercard has rolled out tokenization for consumers in over 2,500 banks across the globe. The solution enables a safer payment ecosystem, inspiring trust from consumers and increasing transaction volume across the digital channel to return greater revenue for merchants.