Online transaction frauds and hacking risks may get minimised if the US based Nuspay International’s ‘virtual account’ payment solution takes wings in India.

Texas-based Nuspay International — a recent entrant in the global payment industry -- is bringing to India the first ever bank-account based tokenised payment solution ‘Virtual Account’.

This ‘virtual account’ token based payment is for cashless, cardless and contactless transactions.

The main benefit of this ‘virtual account’ solution is that the customers’ sensitive personal information is not compromised during financial transactions, Harmeet Sethi, Chief Executive Officer, Nuspay India and Global Sales Head told Business Line here.

This ‘virtual account’ solution was formally launched in the US from April 1 this year. In the virtual account transaction process mechanism, sensitive payment data is replaced with a temporary payment token.

In every request, a token is immediately generated against the customer’s bank account and not the customer’s debit or credit card details.

The token is created with a short life span for a specific amount for a specific beneficiary upon the customer’s authentication and authorisation, said Sethi.

“We are now in talks with several banks in India (both public and private sector) to offer this virtual account and also Near Field Communication (NFC) linked payment solution”, Sethi said.

The primary objective of Nuspay is to replace bank cards, cash and cheques by using NFC tags and mobile devices as an alternative payment solution with additional security features of Tokenized method of payment - Virtual Account.

The menace of online fraud has been growing world over. In India too, as e-commerce gains popularity and expected to $ 22 billion in 2015, fraud has become a major risk.

Sethi said that Nuspay currently has a research centre at Hyderabad and would soon open a full fledged office in New Delhi.