The National Payments Corporation of India (NPCI) has announced the launch of the NPCI Tokenization System (NTS) to support card tokenization as an alternative to storing card details with merchants.
NTS will support the tokenization of RuPay cards in order to enhance customer safety and provide a more seamless shopping experience. Based on the set of guidelines mandated by the RBI, sensitive customer information is to be stored in the form of an encrypted ‘token’ to help secure transactions. These tokens then allow payments to be processed without disclosing customer information or allowing payment intermediaries to store customer data, which could compromise security and privacy.
The Token Reference on File (TROF) service from NPCI will assist RuPay cardholders in maintaining the security of their financial data. Customers’ credit card information will be completely safe and secure at the RuPay network secure vault, NPCI stated in a release. With NTS, acquiring banks, aggregators, merchants, and others can become certified with NPCI and play the role of the token requestor to help save the token reference number against all card numbers saved.
“The RBI’s guidelines on card tokenization are to enhance the safety of the digital payment ecosystem in the country. NTS for tokenization of RuPay cards will boost the cardholders’ trust in carrying out their day-to-day transactions securely,” said Kunal Kalawatia, Chief of Products at NPCI.