Payments and API banking solutions startup Cashfree Payments is partnering with National Payments Corporation of India (NPCI) to offer tokenization on RuPay cards for its merchants.
Token Vault from Cashfree Payments offers a way for merchants to enable their customers to save cards on merchants’ websites or apps and process card payments securely while being compliant with new guidelines from the Reserve Bank of India (RBI), according to a Thursday (June 2) press release emailed to PYMNTS.
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RBI’s new guidelines go into effect on July 1 and forbid businesses and payment aggregators to save customer card details on their platforms. The rules state that only card networks or issuing banks can store sensitive payment information.
The NPCI partnership makes Cashfree Payments a certified and compliant payment tokenization service provider across key card networks like RuPay, Mastercard, and Visa. Cashfree Payments’ tool Token Vault supports credit, debit, prepaid and corporate cards.
Businesses can integrate Token Vault API into their platform and then Cashfree Payments takes care of both saved card functions and processing payments, per the release.
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Akash Sinha, CEO and co-founder of Cashfree Payments, said partnering with NPCI to enable tokenization for RuPay cards gives “merchants a secure and compliance-friendly payments inflow system.”
Sinha added that Cashfree Payments is dedicated to developing the best solutions to provide merchants with an experience that is “simpler, safe, and seamless. … Our business, products, vision and mission support a digital and an inclusive Indian economy.”
Cashfree Payments said it was among the first companies in the industry to go live with its tokenization solution in December 2021.
Card tokenization replaces sensitive details with a stand-in token that uses a string of letters and numbers for security against fraudsters. Once a card is tokenized, the generated card token can be used for processing payments.
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“This partnership with Cashfree payments to provide tokenization solutions on RuPay cards will enable cardholders to enjoy a seamless payment experience backed by best-in-class security,” said Gaurish Korgaonkar, NPCI Head of Fintech Solutions.
“We believe that this is yet another step towards further strengthening the overall digital payments environment with increased safety and security,” Korgaonkar added. “We are confident that this initiative will help various merchants in the digital ecosystem meet the RBI deadline.”