Card tokenisation – Card on File Tokenisation Vs In-device card tokenisation

The regulator in the best interest of the customers handling on-line M-commerce payments, mandated all cards to be tokenised and used for card data saving on the payment gateways or the merchants. The simplest and available technology was the “Card on File tokenisation (COFT)”, where the cards saved on the gateways were stored with a pseudo card#, known only to the card scheme ( Visa, Mastercard, Rupay etc.,).

A few points here to note are :

o Customer card data is being stored at the gateways with a pseudo card#, so the scare of the data being compromised was not an issue in an attempted card transaction.

BUT, this still left a lot to be achieved in terms of :

o Customer experience and awareness :

o??The online txn still involved an OTP sent over SMS and the OTP entry

o??Some amount of card data entry was required by the customer at the gateway for the transaction.

An interesting alternate to card tokenisation was the in-device card tokenisation capability, aka SamsungPay, ApplePay and Google pay etc., where these cards were stored in their proprietary card “vaults” in the customer handset and then used with multiple payment channels at merchant POS terminals.

We have been working on enabling this capability as an independent “card vault” in a customer handset and integrating this for :

-?????????TapNPay for merchant POS terminal payments (NFC devices) and

-?????????In-app m-commerce payments (NFC and non-NFC devices)

In both applications, these transactions come with multiple advantages on :

-?????????Simplified user experience : just select the card and use for in app M-commerce payments OR then tap your NFC mobile at a merchant POS terminal

-?????????It’s the simplest, fastest and safest payment method for a user

-?????????Does not need a 2FAC ( SMS OTP etc.,) and comes with advantages on a lower costs, no chargebacks, no costs for tokenisation / de-tokenisation and has close to 100% success rate on a transaction.

Closing on the above with card issuers and online M-commerce merchants, we are working towards the next generation of customer experience on online M-commerce payments - simple, fast and secure.

Discover more with us on giving your customers a better, simpler, faster and secure online / offline payment experience. Mail us here and we'll take you a step ahead.