PhonePe tokenized 14 million debit and credit cards

PhonePe tokenized debit and credit cards: PhonePe has announced that it has tokenized 14 million credit and debit cards on its network in accordance with the RBI (Reserve Bank of India) guidelines for data security. Since the exercise began in December 2021, the Walmart-backed company claims to have tokenized more than 80% of its active users' cards.

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PhonePe Tokenized Debit and Credit Cards: Key Points

• The new term "token" to be used in place of the actual tokenized card number.


• The real card details are not disclosed to a merchant during transactions, a tokenized transaction is more secure and less likely to lead to data leaks.


• PhonePe stated that it is working with Visa, Mastercard and RuPay, three of the largest card networks, to meet the regulator's September 30 tokenization deadline.


• Since April of this year, when the company started processing token-based transactions, almost all eligible transactions are handled by tokens.


• The success rate of transactions processed via tokens on PhonePe has shown an improvement of about 2 percent compared to card-based transactions.


• The RBI postponed the July card tokenization deadline to September 30, as token-based transaction processing had not yet gained traction. It was the third and perhaps the last of its kind.


• The RBI had stated that the industry should take advantage of the additional time to help all stakeholders prepare to settle tokenized transactions while extending the deadline.


• Many other payment platforms had developed tokenization solutions in response to the RBI's mandate for card data storage.


• PayU, a provider of online payment solutions, launched "PayU Token Hub", which offers both network tokens and issuer tokens under one hub. Razorpay TokenHQ, a multi-network card-on-file tokenization solution, was created by Razorpay.


• The National Payments Corporation of India (NPCI) is working with brands and aggregators to create a tokenization option.

PhonePe: Important Tips For All Competitive Exams:

• PhonePe founder: Sameer Nigam, Burzin engineer and Rahul Chari


• PhonePe CEO: Sameer Nigam

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