scorecardresearchRuPay introduces CVV-free payments for tokenized cards: How will it ease

RuPay introduces CVV-free payments for tokenized cards: How will it ease the process for consumers?

Updated: 16 May 2023, 08:51 AM IST
TL;DR.

RuPay introduces CVV-free payments for tokenized cards, enhancing security and streamlining the payment process for consumers during domestic e-commerce transactions.

Tokenization is a straightforward technology that protects card transactions by eliminating the need to share actual card details with merchants.

Tokenization is a straightforward technology that protects card transactions by eliminating the need to share actual card details with merchants.

RuPay, the indigenous card network of India, has recently introduced a new feature that is set to transform the payment experience for consumers. By introducing CVV-less payments for tokenized cards, RuPay aims to simplify the payment process and bolster security for its vast user base.

In 2021, Rupay implemented card on file tokenisation, aligned with RBI's guidelines, to enhance security for cardholders during domestic e-commerce transactions. Now, Rupay has taken a step further by introducing CVV-free payments for tokenized cardholders, encompassing debit, credit, and prepaid cards.

With millions of cardholders set to benefit, let's explore what this groundbreaking development means for consumers and how it enhances their overall payment experience

How does the tokensiation work?

Tokenization is a straightforward technology that protects card transactions by eliminating the need to share actual card details with merchants.

When a cardholder chooses to save their card for a domestic e-commerce transaction, they authenticate the transaction using their card details, including the card number, CVV, and expiry date, along with a one-time password (OTP) for two-factor authentication.

The details are then tokenized and securely stored with the merchant. This ensures that the customer's actual card details are not saved, reducing the risk of cyber fraud.

How will CVV-free cards benefit consumers?

With the introduction of CVV free payments, cardholders who have tokenized their cards on the merchant's application or webpage can enjoy a streamlined payment experience. 

The CVV less experience provided by Rupay ensures that cardholders no longer need to reach for their wallets or remember card details if they have tokenized their cards on supported e-commerce merchants.

During a domestic e-commerce transaction, they only need to enter the OTP, or their device may automatically populate it. This streamlined process eliminates the hassle of repeatedly entering card details and significantly speeds up the payment process.

Moreover, with the auto-read OTP feature enabled on their devices, the payment process becomes even smoother. This feature is currently live with RazorPay for merchants like Rapido and Porter. Rupay is also collaborating with major aggregators/gateways such as PayU, CyberSource, Firstdata, and Paytm to extend this feature to other merchants.

Importantly, it maintains the highest standards of security, as sensitive card information remains protected.

Rupay's launch of CVV-free payments on tokenized cards signifies a significant milestone in enhancing the payment experience for consumers. This innovation brings greater convenience, faster transactions, and heightened security for millions of Rupay cardholders across India's vast e-commerce landscape.

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First Published: 16 May 2023, 08:51 AM IST