No card required for recurrent online shopping from 2022, says RBI

Wednesday 22 December 2021 14:40 CET | News

Reserve Bank of India (RBI) has revealed that its new payment approach will make recurrent online card payments faster for shoppers.

Purchases from online shopping websites like Amazon, Flipkart, Myntra, and BigBasket will be augmented beginning 1 January 2022, thanks to Reserve Bank of India introducing a new payment approach. The new approach also protects confidential information.

For such digital platforms, customers would no longer have to remember the 16-digit card details and the card expiration date. According to the Reserve Bank of India's directive, shoppers can now make contactless payments via a new method known as tokenization.

As per RBI, tokenization makes shopping with devices more secure, from protected in-store retail POS activities to payments on-the-go, from regular ecommerce to modern app payments. To maintain tokenized cards, the supplier bank will give a separate interface (on its own website). Card members will also get the option of deleting tokens at any time.

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Keywords: RBI, tokenization, online payments, ecommerce, payment methods
Categories: Payments & Commerce
Countries: India
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