Netherlands-based fintech player, PayU's Indian arm, has tokenised about 50 million cards across VISA, MasterCard, and Rupay. The company released a statement ahead of the Reserve Bank of India’s card mandate which requires fintech stakeholders to replace actual card details with an alternate code called the token. The card tokenisation process for PayU India users happens via its solution, PayU Token Hub which was launched in October last year.
PayU Token Hub is developed as an interoperable plug-n-play solution, to enable card on file and device tokenization using a single integration point.
Commenting on this development, Manas Mishra, Chief Product Officer of PayU Payments, said, “We have already integrated some of the largest merchants in the country, and as the deadline approaches, we look forward to helping more businesses and their customers with a smooth transition.”
Mishra believes that Token Hub will help PayU work towards achieving the Indian government’s ‘Digital India’ vision as this move will boost the digital payments ecosystem by making online transactions safer from cyber frauds and thefts.
The deadline for complying with the RBI’s directive on card-on-file tokenisation (CoFT) for merchants is September 30, 2022. The initial deadline was December 2021 which was later pushed to June 31, 2022. RBI’s deputy governor, T Rabi Sankar, had said in June this year that the payments ecosystem is 'by and large prepared' to implement tokenisation for card-based transactions.
Fintech firms have been taking steps towards card tokenisation ever since the RBI’s notification hit the Indian bulletin boards. Recently, Mumbai-based, PhonePe, announced the tokenisation of 1.4 crore or 14 million of its debit and credit cards. Similarly, Vijay Shekhar Sharma-led Paytm also notified that it has tokenised over 52.3 million cards.
Also Read: WATCH: What Is Card Tokenization? How To Tokenize Your Cards?
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