As per the new payment method from RBI online shopping will be cardless. No credit, debit card will be needed for online shopping.
Now shopping online from your favorite sites such as Amazon, Flipkart, Myntra, and BigBasket will be easier.
RBI introduces a new payment approach
According to the new mode, we can now make payments via ‘tokenization.’
We can now quickly make contactless payments via this new method. This new approach also protects our confidential information.
What is Tokenization ?
Tokenization is a technique that involves swapping the card information with a token. This guarantees that purchases run smoothly without compromising clients’ personal information.
The CVV number will no longer be necessary for contactless banking on the server side, making the entire network safer and more secure.
Advantages of Tokenization
While tokenization doesn’t exactly prevent data intrusion, it minimizes the chances. Tokenization makes shopping with devices easier and more secure, from protected in-store retail POS activities to payments on-the-go, from regular e-commerce to modern app payments.
To maintain tokenized cards, the supplier bank will give a separate interface (on its own website). Card members will also get the option of deleting tokens at any time.
How to use it?
Tokenization is completely available for free. Users can tokenize as many cards as they like. Only domestic cards are subject to the present regulations.
However, at this time, tokenization does not apply to overseas cards.
Users must submit their card information and choose tokenization when buying products online at the shopping website’s check-out page.
What happens in case of frauds ?
This new rule was aimed at making payments safe and secure.
So if an online fraud takes place, the hacker will not be easily able to extract buyer information from a token. This is because reverse engineering a token to the actual details of the card is not an easy task.