Correct Answer : PhonePe
The largest fintech platform in India, PhonePe, said that 14 million debit and credit cards have been tokenized on the platform which is in line with the mandatory card tokenization of the Reserve Bank of India (RBI) which is a move to reduce the risk of fraud and safeguard customers' card details. With its Safecard Tokenization solution, PhonePe, one of the leading providers of digital payments, is actively advancing tokenization.
PhonePe began developing tokens in December 2021 in accordance with RBI guidelines and was the first player in the digital payment sector to provide tokens with all three major card networks : Visa, Mastercard, and RuPay. At this time, more than 80% of PhonePe's active users have already tokenized their cards, and the company is on schedule to fulfill the RBI's deadline of September 30, 2022.
* 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.
* 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..
Source : Mint
