Visa launches card-on-file tokenisation service

Visa, a digital payments platform, on Thursday launched its card-on-file (CoF) tokenisation services in India in line with the recently issued RBI guidelines.
Card-on-file (CoF) tokenisation provides two key benefits — consumer and ecosystem security and an enhanced checkout experience, VISA said in a statement.

Launched in partnership with Juspay, the CoF tokenisation service is now available across e-commerce leaders such as Grofers, BigBasket and MakeMyTrip.

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The RBI’s recent CoF tokenisation guidelines mandate replacing the actual card data with encrypted digital tokens, which are then used to facilitate and authenticate transactions.

This devaluation of sensitive card details alleviates risk and reduces vulnerability of sensitive data, as only tokens are present in transit, across the ‘in-rest’ and ‘in-use’ phases, it said.

These new guidelines are expected to enhance consumer trust in e-commerce payments, ensure seamless transaction experience as well as allow card issuers the comfort of authorising a higher number of transactions, it added.