India is leading the world when it comes to secure e-pay. According to Mastercard, India has the safest online transactions due to the tokenisation which replaces the card details with unique tokens. People are still susceptible to scams and frauds but tokenisation is the right step towards the digitally secure India.
India is one of the top countries in digital transactions. Most Indians prefer online payments these days as they are faster, more convenient, and overall a hassle-free experience. And now there are even more reasons for you to use online transactions in India as they are amongst the safest in the world according to Mastercard—all thanks to the RBI’s tokenisation of every transaction. But what is tokenisation and how does it work to secure online transactions in India?
What is Card Tokenisation?On October 1, 2022, RBI implemented the tokenization of Cards. It was introduced in 2021 and came into action in 2022. The main concept is to replace the card details with an alternate code, the “token” so that every time you pay online using your credit/debit card, the merchant won’t be able to save your actual card details instead they’ll have a token number saved. According to Gautam Aggarwal, Country Head of Mastercard India, India is the only nation that tokenises online transactions resulting in reduced frauds and scams. But hackers can still hack one’s device or customers can be tricked to share their card details.
How Does Tokenisation Work?Whenever you shop from an online store, you have to enter your card details to pay the merchant, but with the tokenisation in place, the merchant cannot save your actual card details. The card details entered by you are sent to the card network and a unique token is generated as a replacement for your card details. This token can be saved for future transactions. Each time you pay at different online platforms, the token is different to ensure the highest safety. So even if the data is hacked the tokens cannot be traced back to the original card details.
ConclusionIndia is among the safest nations in online transactions as it tokenises every online transaction. It is a complex process of replacing unique tokens with card details and its implementation has made online transactions safer and faster. But there are still scammers and hackers that can influence customers into fraud. The road to e-pay safety is long but tokenisation is the right step towards a digitally secure India.
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