The monetary industry is making progressive moves to encourage new and more secure payment methods. The concept of Tokenization holds a notable promise to tackle the need of the hour, the idea of “Secured Payment Methods.”
The CEO of India’s most trusted crypto exchange platform, Nischal Shetty, tweeted today, talking about the promising future of tokenization online. According to him, tokens transfer better value of products to its users. Shetty believes that tokens are the best way to ensure customer growth. He wishes to see more Indian companies to adopt tokenization.
The process of tokenization refers to the replacement of sensitive data with identification symbols that derives important information without compromising security. Tokenization can be used for mobile payments. Tokenization can be enabled to work with different technologies and can be widely used as contactless payment applications.
Tokenization is important because it adds a new layer of security for protecting payments without disturbing the shopping process. The tokenization method makes it convenient for users. It does not require to re-enter the account numbers while making an online payment via smartphone, computer, or tablet.
Recently, the Reserve Bank of India released guidelines for the tokenization of credit and debit card transactions. The RBI has permitted the process of all payment services through in-app payment services and via cloud services.
If the payments are made through tokens, no merchant will be able to store the customer’s debit/credit card details. The payment procedure will be initiated after the customer’s bank issues an automated customer ID as a form of a generated token, and the payments will be proceeded based on that ID only.
On a brief note, tokenization will bring a remarkable change in the way the citizens make payments. It will make the card payment and transactions secure, which will encourage people to adopt digital payment methods.