RuPay, one of the leading payment service systems in India, of National Payments Corporation of India (NPCI), has launched NPCI Tokenization System (NTS).
NPCI launched the NTS for RuPay cards, where these card details are converted into tokens as an alternative to putting away card details with the dealers. It is an advanced security feature providing consumers with safe and secure services.
For those who don’t know what tokenization means, it is a process in which when a credit card is used its details are substituted into a one-time alphanumeric ID i.e., tokenized. This token has no connection with the user, it is just a random scramble of characters.
This token does not contain any sensitive data. It is just a map showing where the customer’s details are stored in their bank’s system. It can only be opened after the transaction is complete. The algorithm of the token cannot be reversed.
Even if any hackers could lay their hands on it, they could do nothing with it, for the token can only be opened by the payment processor of the receiver. Even if exposed it does not contain monetizable data.
The strength of this system is that there is no data in the network, just a route map. It is far better than encryption which is none other than converting the data into unreadable crypts.
With NTS, Banks, Aggregators, Merchants and others can get themselves confirmed with NPCI. They can assume the role of a Token Requestor to assist the saving the Token reference number (Token Reference On File or TROF) against all card numbers saved.
These merchants can keep up with their RuPay customer base using TROF for future exchanges started by their particular RuPay buyers.
Kunal Kalawatia, Chief of Products, National Payments Corporation of India assured its safety.
He even placed good hope on the new system by saying that tokenization of RuPay cards will impart further confidence in the large numbers of RuPay cardholders to complete their everyday transactions safely.
He is confident in stating that it will not only safeguard users data but will also help in reinforcing the digital payment sector.
Adding to this NPCI claims this framework will guarantee no client confidential data will get delivered and will reduce friction in the whole payment process.
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