Cashfree Payments, an Indian payments and API banking solutions company, this week launched Token Vault, a tokenized solution enabling merchants to save card network tokens, while staying compliant with Reserve Bank of India (RBI) guidelines. Token Vault also processes payments using tokenized cards as a single solution, eliminating merchants’ need to look out for multiple payment partners.
Card-On-File (COF) tokenization is the process of replacing sensitive card information like card number and expiration date with a cryptographically generated random string, referred to as the card token. The company said tokenized card transactions are safer because the actual card details are not shared with the merchant during a transaction. The generated card token can be used for processing payments, as a substitute to the actual card details like card number and card expiry and CVV. This eliminates the issue of loss of sensitive card information while making card payments.
The recent RBI circular on tokenization states neither the authorized payment aggregators nor the merchants shall store customer card credentials on their servers. Only the card issuing banks or the corresponding networks are authorized by the RBI to save customers’ card details. The deadline for card tokenization is Dec. 31.
“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 Payments co-founder and CEO Akash Sinha said. “The specifications have come at a critical time and will contribute towards sustained growth of a safe digital payments ecosystem in the country. Our tokenization solutions will help merchants save customers’ tokenized card details while enabling a quick and secure card checkout experience. At Cashfree, it is our focus to build innovative and effective solutions, to help provide multiple experiences under one roof.”
Cashfree Payments offers online payments, vendor payments, e-mandate and bulk disbursals in India with Cashfree Payments Payouts. Recently, Indian lender SBI invested in Cashfree Payments. Cashfree Payments works with banks to build the core payment gateways and banking infrastructure that powers the company’s products and is also integrated with major platforms such as Shopify, Wix, Paypal, Amazon Pay, Paytm and Google Pay. Their products are used in eight other countries including the USA, Canada and UAE.