Through tokenisation, Android smartphone users with Google Pay can use their debit or credit card to make payments through a secure digital token attached to their phone without having to physically share their credit or debit card details. The feature also works with online merchants through one-time password (OTP), without any redirects to 3D Secure sites.
To enable the tap and pay feature using the smartphone phone (Android), users will have to do a one-time set up by entering their card details and follow it by entering the OTP they get from the bank to add their card to the Google Pay app. After the registration, the feature can be used to make payments at NFC-enabled terminals.
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“We’re committed to offer the most secure payments experience to our growing base of users, and tokenisation helps to replace sensitive data such as credit and debit card numbers with tokens, eliminating any chances of fraud. We are hopeful that the tokenisation feature will further encourage users to transact securely and safely in the current times, and expand merchant transactions both online and offline.
We are already live for Axis and SBI Card holders with Visa payments network and are working closely with Kotak and other banking partners to further expand the adoption of card-based payments with tokenisation in India,” Sajith Sivanandan, Business Head: Google Pay and NBU – India said in a statement.
Google Pay introduced tokenisation feature at its Google for India 2019. It is a secure way to transact by using a digital token unique to each phone. Therefore, the feature lets user make payment at NFC-enabled POS terminals and online merchants without sharing card details.
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In January 2019, the Reserve Bank of India had issued guidelines on tokenisation of debit/credit and prepaid card transactions. Tokenisation involves a process in which a unique token masks sensitive card details, the regulator had said. In lieu of actual card details, this token is used to perform transactions in contactless mode at POS terminals, Quick Response (QR) code payments and so on.
The guidelines also permit authorised card payment networks to offer card tokenisation services to any third-party app provider.
