Digital payments company PhonePe today announced the launch of PhonePe SafeCard – a tokenized solution for online debit and credit card transactions.
This development comes after the Reserve Bank of India (RBI) issued guidelines for Payment Aggregators (PAs) and Payment Gateways (PG). As per RBI guidelines aimed at making card payments more secure, PAs and merchants will not store the card credentials of customers in their databases with effect from January 1, 2022.
Tokenization provides users with an additional layer of security by converting sensitive card information like card name, card number, CVV into a string of randomly generated numbers known as ‘tokens’. A customer only has to provide one-time consent through OTP and transact for the first time to tokenize his/her debit and/or credit card.
PhonePe’s SafeCard will make recurring payments convenient and secure by allowing payment providers to save cards using tokens. The solution supports all major card networks such as MasterCard, RuPay and Visa.
The company claims that with this solution, merchant partners can create, process, delete and modify tokens for online card payments with the consent of customers. This will save significant time and effort of merchant partners by removing the need for integration with multiple card networks while ensuring full compliance with RBI guidelines.
Ankit Gaur, Director, Online Business, PhonePe said, “What is important is that the PhonePe SafeCard ensures that the added security does not impact the customer experience at all. We are working closely with our large merchant base to bring them live on this platform.”