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Bangalore based payments and API banking solution company, Cashfree Payments has announced the launch of its tokenization solutions, ‘Token Vault’ to allow merchants to save card network tokens effortlessly while staying compliant with RBI guidelines.
The company’s Token Vault Service offers both, saving tokenized cards and processing payments using tokenized cards as a single solution, eliminating merchants’ need to look out for multiple payment partners.
Cashfree Payments in its issued statement said, “Card-On-File (COF) tokenization is the process of replacing sensitive card information like card number, card expiry with a cryptographically generated random string, referred to as the card token. A tokenized card transaction is safer because the actual card details are not shared with the merchant during a transaction.”
“The generated card token can be used for processing payments, as a substitute to the actual card details like card number and card expiry and CVV. This eliminates the issue of loss of sensitive card information while making card payments,” the statement said.
The recent circular by the Reserve Bank of India (RBI) on Tokenization states that neither the authorized Payment Aggregators nor the merchants shall store customer card credentials on their servers. Only the card-issuing banks or the corresponding networks are authorized by the RBI to save customers’ card details. The deadline for card tokenization is December 31, 2021.
Speaking on the launch, Akash Sinha, CEO & Co-Founder of Cashfree Payments said, “It gives us immense pleasure to launch Token Vault, which will help us to assist our entire customer base to stay aligned with the RBI’s guidelines. The specifications have come at a critical time and will contribute towards a sustained growth of a safe digital payments ecosystem in the country.”
“Our tokenization solutions will help merchants save customers’ tokenized card details while enabling a quick and secure card checkout experience. At Cashfree, it is our focus to building innovative and effective solutions, to help provide multiple experiences under one roof,” Sinha added