Tag: rupay

Paytm launches card tokenisation for online transactions

Banking & Finance

[ad_1]

Read More/Less


Paytm Payments Services Ltd (PPSL), a wholly-owned subsidiary of Paytm, is offering ‘card on file’ tokenisation service through the launch of Paytm Token Gateway. It has partnered with platforms such as Myntra, Oyo, Domino’s and others for this service, as also payment giants like Visa, Mastercard and RuPay.

The card-on-file tokenisation service will be available for all Paytm consumers and merchants. It is aligned with Reserve Bank of India guidelines, which says the “saved cards” feature will not be allowed on a merchant network anymore.

The tokenisation service allows a user’s card details to be stored as a unique, irreversible ‘digital token’ for secure transactions. It offers seamless digital card payments by ensuring customers don’t have to remember their card details for every transaction.

Paytm Payments Bank rolls out ‘Paytm Transit card’

Praveen Sharma, MD and CEO, Paytm Payments Services Ltd, said, “Tokenisation is the future of digital payments and also ensures safety, as a user’s card details are not shared with anyone. Our merchant partners can now offer seamless, secure payments to their users.”

A tokenised card transaction is considered safer as the card details are not shared with the merchant.

The details are only shared with the issuing bank and the affiliated network. It will also require explicit customer consent via additional authentication.

WhatsApp gets NPCI nod for doubling payments user base

This will allow e-commerce companies to offer customers the ease of tokenising debit and credit cards. End-customers can thus continue to shop via the saved cards feature, which allows faster checkouts.

As per RBI guidelines, all merchants and/or ecommerce stores have to comply with the new card-on-file tokenisation feature by December 31, 2021.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Visa complains to US govt about India backing for local rival RuPay, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Visa Inc has complained to the U.S. government that India’s “informal and formal” promotion of domestic payments rival RuPay hurts the U.S. giant in a key market, memos seen by Reuters show.

In public Visa has downplayed concerns about the rise of RuPay, which has been supported by public lobbying from Prime Minister Narendra Modi that has included likening the use of local cards to national service.

But U.S. government memos show Visa raised concerns about a “level playing field” in India during an Aug. 9 meeting between U.S. Trade Representative (USTR) Katherine Tai and company executives, including CEO Alfred Kelly.

Mastercard Inc has raised similar concerns privately with the USTR. Reuters reported in 2018 that the company had lodged a protest with the USTR that Modi was using nationalism to promote the local network.

“Visa remains concerned about India’s informal and formal policies that appear to favour the business of National Payments Corporation of India” (NPCI), the non-profit that runs RuPay, “over other domestic and foreign electronic payments companies,” said a USTR memo prepared for Tai ahead of the meeting.

Visa, USTR, Modi’s office and the NPCI did not respond to requests for comment.

Modi has promoted homegrown RuPay for years, posing a challenge to Visa and Mastercard in the fast-growing payments market. RuPay accounted for 63% of India’s 952 million debit and credit cards as of November 2020, according to the most recent regulatory data on the company, up from just 15% in 2017.

Publicly, Kelly said in May that for years there was “a lot of concern” that the likes of RuPay could be “potentially problematic” for Visa, but he stressed that his company remained India’s market leader.

“That’s going to be something we’re going to continually deal with and have dealt with for years. So there’s nothing new there,” he told an industry event.

‘NOT SO SUBTLE PRESSURE’Modi, in a 2018 speech, portrayed the use of RuPay as patriotic, saying that since “everyone cannot go to the border to protect the country, we can use RuPay card to serve the nation.”

When Visa raised its concerns during the USTR gathering on Aug. 9, it cited the Indian leader’s “speech where he basically called on India to use RuPay as a show of service to the country,” according to an email U.S. officials exchanged on the meeting’s readout.

Finance Minister Nirmala Sitharaman said last year that “RuPay is the only card” banks should promote. The government has also promoted a RuPay-based card for public transportation payments.

While RuPay dominates the number of cards in India, most transactions still go through Visa and Mastercard as most RuPay cards were simply issued by banks under Modi’s financial inclusion programme, industry sources say.

Visa told the U.S. government it was concerned India’s “push to use transit cards linked to RuPay” and “the not so subtle pressure on banks to issue” RuPay cards, the USTR email showed.

Mastercard and Visa count India as a key growth market, but have been jolted by a 2018 central bank directive for them to store payments data “only in India” for “unfettered supervisory access”.

Mastercard faces an indefinite ban on issuing new cards in India after the central bank said it was not complying with the 2018 rules. A USTR official privately called the Mastercard ban “draconian”, Reuters reported in September.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Worldline launches cross-border solution for online businesses, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Worldline has launched a cross-border solution designed for international online businesses to expand their e-commerce presence in India.

The solution suite enables processes in India, without requirement for a local entity, and will be available early next year.

Ramesh Narasimhan, Head of Digital Commerce India at Worldline says, “India is a crucial market for Worldline alongside other BRIC economies. Worldline is best placed to make that digital transformation opportunity as seamless as possible.”

The solution will provide access to mandated and popular local payment methods namely: RuPay, UPI and UPI QR and Netbanking. Merchants can list their services in INR to consumers via these payment methods.

It will also repatriate funds, specifically enabling cross-border settlement of funds in the merchant’s preferred currency.

Follow and connect with us on , Facebook, Linkedin



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Junio ties up with RuPay for debit card for pre-teens, teenagers

Banking & Finance

[ad_1]

Read More/Less


Children-focussed fintech, Junio, has launched a smart multipurpose card for pre-teens and teenagers on the RuPay platform.

The Junio RuPay Card is designed for kids and can function as a debit card for both their online and offline purchases, it said in a statement on Monday.

Kids and parents can sign up on the Junio app, and use virtual Junio smart cards with zero annual charges. In addition, children can enjoy up to seven per cent cashback and other reward benefits on Junio payments.

“The newly launched Junio Smart Card powered by RuPay will allow youngsters to make online and offline payments with ease. We are already seeing increased acceptance of the card across the merchant network given the robustness of the RuPay platform,” said Ankit Gera, Co-Founder, Junio.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

PhonePe launches tokenisation solution – The Hindu BusinessLine

Banking & Finance

[ad_1]

Read More/Less


Digital payments major PhonePe on Tuesday announced the launch of PhonePe SafeCard, which is a tokenisation solution for online debit and credit card transactions.

“This solution will enable both PhonePe users and merchant partners to continue experiencing the convenience of saved card transactions with increased security, and in compliance with the new Reserve Bank of India guidelines,” it said in a statement, adding that the solution supports all major card networks such as Mastercard, Rupay and Visa.

SafeCard will also enable PhonePe merchant partners to offer and use tokenisation on their own platforms through a simple Application programming interface (API) integration.

“With this solution, merchant partners can create, process, delete and modify tokens for online card payments with customers’ consent,” it further said.

“PhonePe SafeCard ensures that the added security doesn’t impact the customer experience at all. We are also closely working with our large merchant base to take them live on this platform,” said Ankit Gaur, Director, Online Business, PhonePe.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Is tokenisation the way forward? Here’s what the industry thinks, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Tokenisation will help bring huge value to the digital payments space, and is likely to gain momentum in the coming months, said Ravi Varma Datla, Mastercard‘s vice president – digital products, South Asia.

Last month, the Reserve Bank of India issued guidelines, allowing card-on-file tokenisation. Tokenisation helps consumers to enter and save a 16-digit token on e-commerce or merchant platforms, instead of storing their card details.

“Card-on-File tokenisation enhances the safety and security of the entire transaction value chain in e-commerce payments. It builds trust and can significantly increase convenience for consumers and create efficiencies for merchants. It means there is no need for a consumer to enter his card number every time he transacts, or to login to an online shopping account to update their details due to redundant card credentials,” Datla said.

Last week, National Payments Corporation of India (NPCI) announced the tokenisation system for RuPay cards. The NPCI Tokenisation system will support tokenisation of cards as an alternative to storing card details with merchants.

“We are confident that the NPCI Tokenisation System (NTS) for the tokenisation of RuPay cards will instill further trust in the millions of RuPay cardholders to carry out their day-to-day transactions securely,” said Kunal Kalawatia, chief of products at NPCI.

Also read: What is tokenisation, and how can it ensure safe transactions?

When buying a product or service online, consumers are usually forced to store their credit or debit card details. This is where tokenisation plays a significant role in ensuring consumers’ safety.

“What makes this type of token unique is that it can be used just like your normal card for online payments but only by the merchant that requested it. This means that if a bad-guy or hacker gets their hands on a token – it simply cannot be used. For the sake of identification and reconciliation, RBI has permitted merchants to display the last 4 digits of the original card number to the consumers,” Datla said.

Datla added that as of today, customers have no single view of all the merchants where they have saved their card number. With tokenisation, customers can reach out to their respective banks and view the list of all the tokens saved at merchants and also request to delete or update them.

Recently, Visa launched its card-on-file tokenisation service in India. The company has enabled its tokenisation services across 130 countries. As a large number of shoppers make the shift to online payments, Sujai Raina, Visa’s India business development head, believes it will ensure a frictionless checkout experience for consumers, and drive higher payment success rates for merchants and issuers.

“We believe the RBI’s directive to roll out card-on-file tokenisation in addition to the earlier device-based tokenisation protocols, will help build a safe, secure and seamless environment for digital payments, thus enhancing consumer trust across digital platforms,” he said.

When asked Mastercard about its plan to launch its tokenisation services in India, Datla said the company is working with its partner banks, merchants, payment aggregators, and other stakeholders towards a smooth rollout.

So far, Mastercard has rolled out tokenisation for consumers in over 2,500 banks across the globe. The company has found that the tokenisation has enabled a safer payment ecosystem, and has also increased transaction volume across the digital channel to return greater revenue for merchants, Datla said.

Datla also believes that tokenisation will help make digital payments seamless. “By replacing sensitive payment data with digital tokens, a superior ecommerce experience is created which provides increased security, approval rates and a frictionless consumer experience,” Datla said.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

Razorpay launches card tokenisation solution in partnership with Mastercard, RuPay and Visa

Banking & Finance

[ad_1]

Read More/Less


Fintech platform Razorpay has announced a new tokenisation solution for businesses in India to enable their end-customers to continue experiencing the convenience of saved card transactions, now with added security and in compliance with RBI guidelines.

The solution termed ‘Razorpay TokenHQ’ is a multi-network Card-on-File (CoF) Tokenisation solution that will work across all major card networks including Mastercard, RuPay, and Visa.

Almost the entire base of five million businesses using Razorpay’s services will be ready to support tokenised card transactions.

RBI guidelines

Earlier this year, the Reserve Bank of India had issued a new set of guidelines that disallow businesses, payment aggregators, and acquiring banks from storing customers’ credit/debit/prepaid card information. The new guidelines allow only card networks and card issuers to store customer card information, and sanctions businesses to use tokens for offering saved card experience during online payments.

Benefits of tokenisation

COF tokenisation is the process of turning sensitive cardholder data into a string of randomly generated numbers called a “token”, which has no meaningful value if breached. All stakeholders are required to ensure full compliance with the tokenisation framework by 31st December 2021.

Also see: NPCI launches NTS platform for card tokenisation

In absence of tokenisation, customers will have to enter their card information manually, every time they transact online. This can be an inconvenience to customers and increases the chances of error in entering data leading to transaction failures.

“Tokenisation, as a technology solution bridges this inconvenience gap and enables customers and businesses to sustain “business as usual”, by converting customer card information into a coded “token”,” Razorpay said in an official release.

Homegrown solution

Shashank Kumar, CTO and Co-founder, Razorpay, said, “The RBI has been making great strides to enhance the security and convenience of digital payments in India. Newer regulations offer tremendous opportunities for us to innovate and develop localised solutions that work well for Indian businesses. Tokenisation is one such regulatory development, and Razorpay TokenHQ is a homegrown solution that will enable businesses to continue to offer seamless payments while ensuring individuals have control over their card data.”

He further added, “There are over 950 million debit & credit cards in India and this number will only grow given the rise of non-cash transactions in India’s hinterlands. We hope to see a lot of developments in building smart, secure fintech solutions for businesses and their end-users in the times ahead.”

Available for all businesses

Razorpay TokenHQ will be available for all businesses as well as merchants using other payment gateways. Merchants can use Razorpay’s solution to tokenise cards and route payments using their existing payment partnerships.

Also see: Coming soon, new framework for offline digital payments

Merchants with customised setups can start integrating Razorpay TokenHQ through APIs.

Using Razorpay TokenHQ, businesses would be able to create, process, delete and modify tokens for online card payments with customers’ consent.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

NPCI launches tokenisation of RuPay cards as safety measure, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


New Delhi, Oct 20 (PTI) The National Payments Corporation of India (NPCI) on Wednesday announced the tokenisation system for RuPay cards to enhance the safety of card data. The NPCI Tokenisation System (NTS) is to support tokenisation of cards as an alternative to storing card details with merchants, NCPI said.

It will further enhance the safety of customers and provide a seamless shopping experience to them.

NPCI said the sensitive customer information will be stored in the form of an encrypted ‘token’ to help secure transactions, in accordance with RBI guidelines.

These tokens will allow payments to be processed without disclosing the customer details or allowing the payment intermediaries to store customer data that could breach security and privacy, it said.

With NTS, acquiring banks, aggregators, merchants and others can get themselves certified with NPCI and can play the role of token requestor to help save the token reference number against all card numbers saved.

All these businesses can maintain their RuPay consumer base utilising token reference on file (TROF) for future transactions initiated by their respective RuPay consumers, NPCI said.

The fool-proof and transparent system will ensure that no customer-sensitive information is leaked. Tokenisation will also help in reducing the friction in the payment process by providing a faster check-out experience to the customers.

“The RBI’s guidelines on card tokenisation is to enhance the safety of the digital payments ecosystem in the country.

“We are confident that the NPCI Tokenization System (NTS) for the tokenisation of RuPay cards will instill further trust in the millions of RuPay cardholders to carry out their day-to-day transactions securely,” Kunal Kalawatia, chief of products, National Payments Corporation of India, said.

He hoped that the unique card-on-file tokenisation solution will not only safeguard customers’ confidential data but will also further strengthen the overall digital payments environment. PTI KPM HRS hrs



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

NPCI is estimating 25 million new mandate registrations for recurring payments by the end of fiscal

Banking & Finance

[ad_1]

Read More/Less


The National Payments Corporation of India (NPCI) is estimating a run rate of 25 million new mandates for customers getting registered every month for recurring payments by the end of this fiscal. The federal fintech firm is also looking at a target of processing one billion UPI transactions per day over the next three years.

Speaking at The Global FinTech Fest 2021, Dilip Asbe, Managing Director and CEO, NPCI said, “Last year we had about 22 billion UPI transaction volumes and this year we are expecting that to touch 40-42 billion. And annually the value is over one trillion dollars. There is still a possibility of 10X growth in digital payments. We should process about 50 billion transactions on a monthly basis and one billion per day over the next three years. There is a lot to be done, we have just started.”

“While I would assess that we would touch the one billion mark by the next five years, given that the government and regulators are keen on growing digital payments ecosystem at scale, we should aspire to reach one billion transactions a day in three years,” Asbe added.

Rajan Anandan, Managing Director, Sequoia India & Surge, who was conducting the chat with Asbe added, “We should make a national mission to get UPI to a hundred countries. That would make world a better place and that will create a massive number of global Indian payments companies.”

Recurring Payments

One of the initiatives NPCI is actively working on is to make recurring payments safe and secure by adding two-factor authentication and creating the right mandate for the customers.

Also read: Auto debit norms: Payments Council of India seeks extension for smooth transition

“We call it a layer of ‘auto pay’ wherein NPCI’s three-four existing companies are fighting for a share in that space. We have an auto pay layer on UPI, Rupay, NACH and Bharat Bill Payment System. These systems will compete with each other to get the mandate share in the market. We have been receiving 2 million new mandates registrations from customers for auto pay on UPI every month. NACH is also getting around 2 million. Rupay and BBPS are just starting in a month or so,” Asbe said.

“We want to exit the financial year with a run rate of 25 million new mandate registrations per month. I strongly believe the regulator believes in long-term gains,” he added.

Need for MDR

According to Asbe, there needs to be reasonable charges for MDR. As the volumes are growing, as an ecosystem they must set up a path.

He said, “We need to make it more cost effective for the ecosystem. While the government has been trying to make digital payments accessible to smaller local merchants by making MDR zero during the demonetisation phase in good faith, we are constantly having conversations with all the ministries involved, asking to set a reasonable charge and thankfully the finance minister announced some incentives in the budget.”

“The 10x growth will come through investments in customer onboarding, spreading awareness and customer protection. The merchant base needs to grow from 50 million active merchants to 100 million. Everybody in that supply chain needs to make money, at least to fund their IT investments and banks have to create scalable CBS (core banking solutions) processes to allow huge volumes of UPI transactions. We are hoping the government will very soon make an announcement on this,” he added.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

NPCI, Fiserv to open RuPay API platform, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


The National Payments Corporation of India (NPCI) has tied up with Nasdaq-listed fintech firm Fiserv to launch an application programming interface (API) platform for startups and banks looking to build credit card-based products on top of the RuPay rails, said senior company executives.

They said the collaboration will help faster and cheaper onboarding of customers and merchants by banks as well as enable fintech firms to build out new models of digital interfaces for customers launching RuPay credit card products.

“We are trying to expand the credit ecosystem in India, where a lot of great work has happened on the debit side,” Rishi Chhabra, head of India and Sri Lanka at Fiserv, told ET.

The Wisconsin-based firm, which has been operating in India for over a decade, works with seven of the top ten credit card issuing banks in India.

“While collaborating with NPCI one of the shared visions is to expand credit issuance in India,” said Chhabra. “Our tech stack on RuPay will support scalability from an onboarding perspective for both banks and fintechs. We have hundreds and thousands of micro-APIs for the fintech firms to code, consume and onboard and launch their services at scale.”

The collaboration comes at a time when card networks Mastercard and American Express have been barred by the Reserve Bank of India (RBI) from issuing any new cards owing to non-compliance with data localisation mandate resulting in a clutch of card-issuing banks migrating their networks to Visa and NPCI’s homegrown RuPay.

According to Nalin Bansal, the chief of corporate relationships and fintechs at NPCI, the collaboration with Fiserv will help RuPay build an ecosystem around its credit card products, thereby attracting more fintech firms to innovate and scale these offerings.

“In India what we have achieved on debit, we haven’t been able to emulate on credit. The need now is how to make credit more affordable for a larger set of customers,” said Bansal. “The platform will help onboard fintech firms at a fairly reasonable cost and speed. These need not be high-end, premium products. It could be a credit card with lower feature sets and limits to the broad-based credit market in India.”

The platform, called ‘nFiNi’, will power RuPay cards by offering access to services through the NPCI network and Fiserv’s microservices-based platform-as-a-service with a set of APIs. This stack, among other things, will support orchestration of the digital user experience, enable push alerts for in-app, mobile messaging app and SMS notifications, simplified integration options and instant digital card provisioning, allowing customers to transact immediately after being approved for a card.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,
1 2