PayU tokenizes 50 million cards
The Indian division of PayU, a Dutch fintech company, tokenized around 50 million cards from Rupay, MasterCard, and VISA. Before the Reserve Bank of India’s card requirement, which mandates fintech stakeholders to replace actual card details with an alternative code called the token, the company issued a statement. Users of PayU India’s solution, PayU Token Hub, which debuted in October of last year, handle card tokenization.
Card on file and device tokenization can be enabled utilizing a single integration point with the help of PayU Token Hub, an interoperable plug-and-play solution.
Manas Mishra, chief product officer at PayU Payments, commented on the development, saying, “We have already integrated some of the largest merchants in the country, and as the deadline draws closer, we look forward to aiding more businesses and their consumers with a smooth transition.”
Mishra thinks that Token Hub will aid PayU in realizing the ‘Digital India’ objective of the Indian government since it will strengthen the ecosystem of digital payments by protecting online transactions from cyberfrauds and thefts.
The RBI has given retailers till September 30, 2022, to comply with its card-on-file tokenization (CoFT) mandate. The original due date was set for December 2021; however, it was later moved to June 30, 2022. In June of this year, T Rabi Sankar, the deputy governor of the RBI, stated that the payments ecosystem is “by and large prepared” to deploy tokenization for card-based transactions.
Since the RBI’s notification appeared on Indian message forums, fintech companies have been moving toward card tokenization. Recently, the Mumbai-based company PhonePe stated that 14 million of its 1.4 crore debit and credit cards have been tokenized. Similar to that, Paytm, which is founded by Vijay Shekhar Sharma, announced that it had tokenized over 52.3 million cards.