Money & Banking

Paytm launches card tokenisation for online transactions

K. R. Srivats | | Updated on: Nov 30, 2021
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Partners Visa, Mastercard and Rupay to launch the Paytm Token Gateway

Paytm Payments Services Ltd (PPSL), a wholly-owned subsidiary of Paytm, is offering ‘card on file’ tokenisation service through the launch of Paytm Token Gateway. It has partnered with platforms such as Myntra, Oyo, Domino’s and others for this service, as also payment giants like Visa, Mastercard and RuPay.

The card-on-file tokenisation service will be available for all Paytm consumers and merchants. It is aligned with Reserve Bank of India guidelines, which says the “saved cards” feature will not be allowed on a merchant network anymore.

The tokenisation service allows a user’s card details to be stored as a unique, irreversible ‘digital token’ for secure transactions. It offers seamless digital card payments by ensuring customers don’t have to remember their card details for every transaction.


Praveen Sharma, MD and CEO, Paytm Payments Services Ltd, said, “Tokenisation is the future of digital payments and also ensures safety, as a user’s card details are not shared with anyone. Our merchant partners can now offer seamless, secure payments to their users.”

A tokenised card transaction is considered safer as the card details are not shared with the merchant.

The details are only shared with the issuing bank and the affiliated network. It will also require explicit customer consent via additional authentication.


This will allow e-commerce companies to offer customers the ease of tokenising debit and credit cards. End-customers can thus continue to shop via the saved cards feature, which allows faster checkouts.

As per RBI guidelines, all merchants and/or ecommerce stores have to comply with the new card-on-file tokenisation feature by December 31, 2021.

Published on November 30, 2021

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