National Payments Corporation of India (NPCI) has enabled CVV-free payments for customers who hold RuPay cards, India’s indigenous card network. This is for users who have an active debit, credit, and prepaid RuPay card.
However, only those users who have tokenized their cards will be able to make payments with RuPay cards without entering their CVV numbers.
In a statement, Denny Thomas, the head of RuPay said, “Our vision has always been to ensure effortless payments for all our RuPay card holders without compromising on the security aspect. Having worked with the payments industry extensively for implementation of Card on File Tokenization, which ensures utmost security of sensitive card information, now we are aiming at making the payment experience of a tokenized card seamless.”
How Does CVV-Free RuPay Payment Work?
With this new payment experience where users don’t have to enter their CVV, card holders need not remember their card details, provided their RuPay cards are tokenized on the e-commerce merchant.
Since their card details would already be saved with the e-commerce merchant, a customer will simply have to punch in the OTP. Even this step can be automated as many payment and e-commerce apps will automatically detect the OTP and process the payment.
Interesting Read: Integrate With Paytm Token Gateway to Get Started With Tokenisation
For the entire process to work, RuPay card holders must tokenize their cards on the e-commerce platform. Tokenization is a simple technology to secure card transactions without sharing the clear or real card details with the merchants. This is how the tokenization process works:
- Customer visits an e-commerce platform to shop and adds products in his or her cart.
- On the checkout page, the customer adds their RuPay card details such as card number, CVV, card expiry date, and gives one-time consent to save or tokenize their card.
- As a one-time activity the customer has to enter the OTP, which is a compulsory two-factor authentication.
- Customer’s details are then tokenized and saved with the merchant.
Tokenization safeguards the card details of the customer from cyber frauds as real details are not saved with the merchant.
How Can Merchants Benefit From CVV-Free RuPay Payment?
Convenience is at the heart of online shopping and digital payments. In its statement, NPCI said RuPay, which serves millions of Indians across every nook and corner, is driven by the idea of solving and reducing friction for customers.
This announcement will further reduce payment-related friction for RuPay card holders. With NPCI removing the need to enter CVV number, which can be a point of friction for customers, it is expected that it will result in improved payment success rates as well as a seamless payments experience for customers. Both these factors will ultimately result in repeat purchases for merchants.
That is why it is important that every online merchant should partner with a payment gateway that can seamlessly tokenize customers’ card details.
Interesting Read: Can Tokenisation Reduce Cart Abandonment Problem For Businesses?
Paytm’s Token Gateway Solution is flexible, versatile, and made for every type of online business. It works seamlessly for businesses that use Paytm as a payment aggregator as well as those that use other payment aggregators.
By partnering with Paytm, merchants can easily enable their customers to tokenize and save their RuPay cards within minutes.
Frequently Asked Questions
Question 1: What is tokenization?
Answer: Tokenisation refers to the process of replacing actual debit and credit card details with randomly generated numbers, also known as tokens. These tokens are unique to every online platform, even if they are tokens of the same card. As directed by RBI in its circular, online businesses have to get explicit consent from their users who wish to tokenise their debit and credit cards.
Question 2: Why is it important for merchants to tokenize card details?
Answer: One major benefit of tokenizing card details is that merchants can let customers save their cards so that they can pay without entering their card details every time they shop. Merchants that allow payments via saved cards see a steep fall in cart abandonment as there is no friction to make payment.