New Delhi. In line with the recently released RBI Guidelines, global payment technology company Visa (VISA) on Thursday launched the Card-on-File tokenization service in India. The card-on-file tokenization service launched in partnership with Juspay will be available for e-commerce companies like Grofers, BigBasket, and MakeMyTrip.
RBI's recent COF tokenization guidelines make it mandatory to replace the original card data with an encrypted digital token. These digital tokens will be used to facilitate and authenticate transactions. According to industry experts, this reduces the risk of sensitive card details as only tokens are present in the 'interest and 'in-use phases in transit.
Experts say that the card-on-file tokenization service has two main advantages – consumer and ecosystem security and a better checkout experience. Additionally, experts say that this is expected to increase consumer confidence in e-commerce payments and enable card issuers to authorize more transactions while ensuring a convenient transaction experience.