The company said Wednesday (Nov. 17) that its Token Vault Service offers saving tokenized cards and processing payments with tokenized cards as one solution, meaning its clients won’t need to seek out multiple payment partners.
“It gives us immense pleasure to launch Token Vault, which will help us to assist our entire customer base stay aligned with the RBI’s guidelines,” Cashfree CEO and Co-founder Akash Sinha said in the announcement. “The specifications have come at a critical time and will contribute towards sustained growth of a safe digital payments ecosystem in the country.”
Tokenized cards are considered safer because the actual details of a customer’s card are not shared during transactions. Instead, tokenization replaces these details — card number, expiration date, etc. — with a random string, or card token.
Read more: RBI Releases Guidelines For Electronic Card Payments
The RBI’s rules say that neither authorized payment aggregators nor merchants can store customer card credentials on their servers, and will allow only the banks that issued the cards or their corresponding networks to save card details.
The RBI first released these guidelines in 2019 and recently set a deadline for card tokenization for Jan. 1, 2022.
Cashfree says it is among the certified and compliant payment tokenization service providers working across major payment networks such as Visa, Mastercard and Rupay.
Related: PayU Token Hub Will Help Card Networks and Banks With Tokenization
Last month, payment solutions provider PayU launched its own tokenization service, built with the help of the full-stack global payments company Wibmo. This tool includes network tokens and issuer tokens in a single hub.
“We welcome the new RBI guidelines, as they empower the customer and ensure safer transactions,” Manas Mishra, chief product officer, PayU India, said at the time. “PayU has built the most innovative and robust solution to manage easy compliance with these guidelines for all players in the ecosystem.”
