Digital payments platform PhonePe has announced that it has tokenised its cards on three major payment networks Visa, Mastercard and Rupay.
The company said it is the first digital platform to tokenise on all the three platforms. The tokenisation solution is expected to help businesses save time and provide additional safety by avoiding the need to integrate with multiple card networks, while still complying with the guidelines set by the Reserve Bank of India.
Tokenisation can provide an additional layer of security for users by the process of converting data from users, which usually includes sensitive data such as account number, addresses, to a string of randomly generated numbers which are known as tokens.
PhonePe’s tokenisation solution, called as the PhonePe Safecard, will be able to offer tokenisation on financial platforms by intergrating their Application programming Interface (API) into solutions offered by Mastercard, Visa and the likes.
The Bengaluru-based fintech said that the solution will give its users a headstart over competition by gaining access to PhonePe customers’ tokenised cards. The company also said that it will take care of any additional authentication requirements for users, if necessary.
Merchants will also receive a secured vault on a storage environment which is compliant with PCI-DSS, short for Payment Card Industry-Data Security standard.
“PhonePe’s over 33 crore registered consumers will also have a unique benefit as they can now tokenise their credit and/or debit cards just once and enjoy seamless usage across all our merchant partners,” said Deep Agrawal, Head of Payments, PhonePe.
Tokenisation provides users an added layer of security by converting sensitive cardholder data to a string of randomly generated numbers known as a token. PhonePe’s tokenisation solution “PhonePe Safecard” enables businesses to offer tokenisation on their own platforms via a simple API integration and a minimum turnaround time. With this solution, businesses can create, process, delete and modify tokens for online card payments with customers’ consent.
Consumers will be able to avoid entering their 16 digit card number for all transactions on the PhonePe app, post which they can save their cards on platforms offered by Visa, Mastercard and Rupay.
“This is a significant milestone for us and will benefit millions of our merchant partners by helping them comply with the RBI guidelines and ensuring a seamless customer experience,” added Agrawal.