RuPay has introduced a new payment method without having to enter the three-digit CVV (Card Verification Value) at the back of the debit, credit, and prepaid cards. The facility is only available to those who have tokenised their cards on the merchant application or webpage. The added layer of security is expected to safeguard cardholders from cyber fraud and enhance the digital payment experience.

This comes after Paytm Payments Bank enabled customers to link their RuPay Credit Card to a UPI ID.

What is tokenised and how it works

Tokenisation secures card transactions protecting the cardholder’s data without disclosing them to merchants.

When cardholders store their card data on a domestic e-commerce platform, they authenticate the transaction through the CVV number and Card expiry date. Now, cardholders have to perform an OTP verification (two-step verification). Then their data is tokenised and stored with the merchant.

The feature launched by NPCI in association with RazorPay is available for merchants, such as Rapido. RuPay is collaborating with major aggregators/gateways, such as PayU, CyberSource, Firstdata, and Paytm.