new era of safer digital payments: Mastercard
Card-on-File Tokenization will usher in a new era of safer digital payments: Mastercard India 2021: To safeguard India from mounting cyber and financial fraud cases, the Reserve Bank of India rolled out a landmark decision in September 2021. The new regulation by the central bank permitted the payments networks and issuer Banks to offer card tokenization services as Token Service Providers (TSPs) to the e-comm erce Merchants and Payment Aggregators starting 01 January 2022. This permission is an extension to the device-based tokenization services provided by payments network. Tokenization is a mechanism to replace card numbers with a token, i.e., a virtual number, specific to a merchant. When a consumer logs into a merchant app or website, where their card details were stored, they only see the last 4 digits of the original card number. At the backend, TSPs will replace the card number with a token, ensuring that card details are not stored anywhere in the value chain, excep