Who doesn’t enjoy a little online shopping? You not only get the convenience of shopping for daily necessities but also extravagant treats for gifting, or for yourself. All this comes with the ease of access from a range of delectable delicacies through food delivery apps to luxury fashion websites. But, what if an obstacle, like an extra payment step, hindered you from enjoying these comforts? It may not be such a bad thing, though!
Our increased reliance on online payments has led to a rise in cybercrimes. With security breaches becoming a growing concern in the cyber realm, the RBI decided to implement certain changes.
Back in March 2020, RBI realised that strengthening its security measures on merchant websites is crucial in the battle against cybercriminals. Their investigation suggested that card details saved on merchant websites are vulnerable to leaks and misuse by hackers. This led the RBI to ask all merchant websites to erase existing card details, like credit and debit cards, from their platforms.
As a customer, you enjoy the benefits of online payments by simply using your saved card details, and only entering a CVV and OTP. The idea of re-entering your card details is a tiresome task, which the RBI and these companies recognise.
The RBI introduced Tokenisation as a means to keep online payments running seamlessly. However, companies have been concerned about how these changes could deter customers. The two options available to customers for online payments would consist of tokenised payments or re-entering card details for each transaction.
With people still learning to accept payment modes like UPI, tokenised payments will be a new learning curve. Fortunately, the RBI has extended the dates for erasing saved card details and implementing tokenisation until the 30th of June 2022.
Tokenised payments use a form of unique IDs or tokens, which are created for every merchant website you transact with. So, while you may only use one credit or debit card for all your payments, every platform or app will have a separate token created for it. This means that these companies will no longer be able to view sensitive card details saved by you. Incidentally, it will prevent cybercriminals from doing the same for malicious purposes.
Here’s how tokenised online payments will work once fully implemented.
Step 1: With your cart full, you decide to hit buy or checkout
Step 2: The merchant website will inquire if you want to tokenise your card
Step 3: If you opt to do so, your card details will be forwarded to a network
Step 4: The network will generate a unique token for that particular merchant website
Step 5: You can save the token on the website for future uses
Step 6: Simply continue the transaction with your CVV and OTP, like before
Many companies and customers alike are on the fence about using tokenised payment methods. However, you might want to explore some more of its benefits before disregarding it.
While the number of online shoppers has increased, people are still wary about information leaks. This will boost their confidence in engaging with online payment portals.
It prevents the loss of revenue caused by data breaches. Customers are likely to switch to rival companies if a business has been affected by cyber infringements.
This is a great step in the direction of improving the user experience while creating innovative payment methods. It continues the progress of e-commerce engagement by evolving crucial processes like these.
See, it’s that easy! These additional steps may put you off in the beginning, but it’s an integral effort put in by the RBI to boost cyber security.