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Mastercard enables over 2,000 online merchants to perform card-on-file tokenization

In support of the Reserve Bank of India (RBI) directive mandating Card-on-File (COF) tokenization for merchants, Mastercard today announced that it has enabled two lakh online merchants of all sizes across the countries to use card-on-file tokenization. In line with Mastercard’s commitment to partner with government and regulators to enable a safe and secure digital payments ecosystem, the company has worked with over 45,000 merchants, 34 issuing banks, 10 acquiring banks and 30 token applicants. (including all major payment aggregators), as well as service providers to enable 90 million tokenized transactions for Mastercard cardholders since December 2021.

Card-to-file tokenization

Card-on-file tokenization, as mandated by the RBI, replaces sensitive payment identifiers such as names, expiration dates and codes with unique digital tokens. It prevents entities in the transaction value chain from collecting and recording cardholder details, providing an additional layer of security that builds consumer trust. Tokenization gives cardholders peace of mind that they can make secure digital payments without having to worry about online payment fraud.

Additionally, Mastercard’s collaboration with payment aggregators such as Juspay, PayU, Razorpay, BillDesk and Paytm, has already enabled countless merchants to process token-based transactions. The number of merchants adopting tokenization is expected to increase further as the September 30 RBI deadline approaches.

Mastercard has encouraged all merchants and cardholders to save their card details and tokenize their cards by August 1, 2022.

Commenting on this, Sheetal Lalwani, co-founder and COO of Juspay, said, “Juspay’s vision is to make payments secure and frictionless. We are an early proponent of tokenization and have invested heavily to build a comprehensive enterprise-grade tokenization infrastructure to support high performance, scalability, and security. In line with RBI’s mandate for COF tokenization, Juspay has become a prominent player in assisting merchants with both token transaction setup and processing. Our partnership with Mastercard is essential to bring tokenization to as many people as possible. In the coming months, we will continue to work with our partners to increase its scale and adoption.”

Mohit Gopal, COO, PayU Payments, said, “PayU is excited to work with Mastercard to help businesses transition to Card-on-File (COF) tokenization standards seamlessly. Like Mastercard, PayU is also committed to providing an innovative and robust solution for easy compliance with RBI guidelines through its fully interoperable PayU Token Hub solution. Through our solutions and our partnership with payment networks like Mastercard, we hope to facilitate a smooth transition to tokenization for all popular payment use cases.”

“Mastercard is delighted to help facilitate the rapid deployment of card-on-file tokenization in India. Security, reliability and convenience are the fundamentals of a robust digital payment ecosystem. Tokenization brings these principles to life by ensuring the security of cardholder data without compromising the convenience and ease of shopping online. It also helps merchants enable a one-click payment experience, ensuring fast and seamless transactions for cardholders. Mastercard supports the RBI mandate that will enable the wider merchant community and millions of cardholders to move rapidly towards a less cash economy,” said Nikhil Sahni, Country Managing Director, India and Division President. , South Asia, Mastercard.

Since December 2021, the industry has made significant progress, with more than 200 million tokens created on the networks, including Mastercard. As cardholder awareness of CoF tokenization increases, adoption rates will increase rapidly.

Mastercard is a global technology company in the payments industry. Its mission is to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible.

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