In Support of the RBI Directive, Mastercard Enables More Than Two Lakh Online Merchants for Card-on-File Tokenization
In support of the Reserve Bank of India’s (RBI) directive mandating card-on-file (COF) tokenization for merchants, Mastercard today announced that it has enabled two lakh online merchants of all sizes across the country with card-on-file tokenization. In line with Mastercard’s commitment to partnering with the government and regulators to enable a safe, secure digital payments ecosystem, the company has worked with over 45,000 merchants, 34 issuing banks, 10 acquiring banks, and 30 token requestors (including all major payment aggregators), as well as services providers, to enable 90 million tokenized transactions for Mastercard cardholders since December 2021.
Card-on-file tokenization, as mandated by the RBI, replaces sensitive payment credentials such as names, expiry dates, and codes with unique digital tokens. It inhibits entities in the transaction value chain from collecting and saving cardholders’ details, providing an additional layer of security that enhances consumer confidence and trust. Tokenization gives cardholders peace of mind that they can make secure, digital payments without having to worry about online payment fraud.
Additionally, Mastercard’s collaboration with payment aggregators such as Juspay, PayU, Razorpay, BillDesk, and Paytm, have already enabled countless merchants to process token-based transactions. The number of merchants adopting tokenization is expected to increase further in the run-up to the RBI’s September 30 deadline.
Mastercard has encouraged all merchants and cardholders to save their card details and tokenize their cards by August 1, 2022.
Commenting on this, Sheetal Lalwani, Co-founder & COO of Juspay, said, “Juspay’s vision is to make payments secure and frictionless. We are one of the early believers in tokenization and have invested heavily to build an enterprise-grade, full-stack tokenization infrastructure to support high performance, scale, and security. In line with RBI’s mandate for COF tokenization, Juspay has become a leading player to support merchants for both set-up and processing of transactions on tokens. Our partnership with Mastercard is critical in taking tokenization to the masses. In the coming months, we will continue to work with our partners to increase its scale and adoption.”
Mohit Gopal, Chief Operating Office, PayU payments said “PayU is pleased to work with Mastercard to help businesses embrace the card-on-file (COF) tokenization norms seamlessly. Like Mastercard, PayU is also committed to providing an innovative & robust solution for easy compliance with RBI guidelines through its fully interoperable solution PayU Token Hub. Through our solutions and our partnership with payment networks like Mastercard, we hope to facilitate a smooth transition to tokenisation for all popular payments use cases”.
“Mastercard is pleased to help facilitate the timely rollout of card-on-file tokenization in India. Security, reliability, and convenience are the core tenets of a robust digital payment ecosystem. Tokenization brings these tenets to life by ensuring the security of cardholder data without compromising the convenience and ease of online shopping. It also helps merchants to enable a ‘one-click’ checkout experience, ensuring fast, seamless transactions for cardholders. Mastercard is supportive of the RBI’s mandate which will empower the larger merchant community and millions of cardholders to make rapid strides towards a less cash economy,” said Nikhil Sahni, Country Corporate Officer, India & Division President, South Asia, Mastercard.
Since December 2021, the industry has made significant progress, with more than 200 million tokens created across networks, including Mastercard. As cardholders’ awareness of CoF tokenization increases, adoption rates will grow rapidly.