Security Check

The digital payments ecosystem gets a security boost with the introduction of tokenisation

- Kalpesh J. Mehta

THE JANUARY announcement allowing tokenisation of debit, credit and prepaid card transactions to enhance the safety of the digital payments ecosystem in the country is a welcome move. It will be highly beneficial to address the safety concerns of payment channels, especially when card information is stored and saved for future transactions. With strong industry backing, clear guidelines and well-devised reference implementations, tokenisation is a positive move.

India has been undergoing a number of changes and developments in the form of reforms in the last few years. The reforms have led to higher growth rates, stable economy and improvement in macroeconomic stability and global integration. Further, there is an improvement in the business environment with the implementation of stable governance standards. The financial landscape, both in India and globally, has changed significantly over the last decade. Key forces driving this change include increased customer expectations, emergence of new disruptive technologies, new-age technology competitors and evolving regulatory requirements.