Payment gateway, Razorpay, has expanded its tokenisation suite by introducing push provisioning, which will create a token at the time of card issue. Post tokenisation, the platform’s transaction success rate has risen by 2 per cent to 82 per cent, said Khilan Haria, Senior VP, and Head of Payments, Product, Razorpay.  

Tokenisation is the process of converting debit or credit card details into unique encrypted tokens. The RBI mandated the adoption of tokenisation in September 2021 in order to improve users’ experience with digital payments by providing an additional layer of protection.

“With the push provisioning capability, we are exploring to create tokens right when the card is issued instead of it getting created when one goes to a merchant website. We are live with a few merchants and a large bank already,” Haria told businessline. This capability along with its already present tokenisation suite, Haria believes will help Razorpay tap on greater market share, going forward.  

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Success rate

“Our success rate has gone up anywhere between 0.5-2 per cent depending on the bank and card type. This is a positive growth compared to pre-tokenisation, and it is helping banks and networks with better risk underwriting,” Haria said. While the transaction success rate for tokenised cards is high at 82 per cent, the rate for non-tokenised cards is lower at 63 per cent. 

Razorpay, one of the early adopters that adhered to the mandate on October 21, is seeing approximately 8 lakh payments per day. A total of 20 million cards have been tokenised so far on the Razorpay platform, Haria mentioned. 

Early adoption of tokenisation has helped with capturing market share along with improving success rates, according to Haria. “We saw this as an opportunity to enable merchants to go live faster as we were early adopters. Our readiness and flexibility to help businesses to solve a lot of complex scenarios post tokenisation helped us grab a part of market share,” he said.