The National Payments Corporation of India (NPCI) announced on Monday that RuPay, the domestic card network developed by NPCI, has introduced a new payment experience that eliminates the need for Card Verification Value (CVV) for its debit, credit, and prepaid cardholders who have tokenized their cards on the merchant application or webpage.
This innovative CVV-less experience aims to provide a seamless and secure payment process for cardholders by eliminating the need to remember or retrieve card details during transactions.
With the new feature, cardholders who have saved their card details (tokenized) on an e-commerce merchant supporting this functionality can enjoy a hassle-free payment experience.
The introduction of the CVV-less payment experience brings significant advantages to cardholders who have securely tokenized their card details on participating e-commerce platforms.
By eliminating the need to retrieve or remember their CVV during transactions, customers can now enjoy a seamless and hassle-free payment process. This innovation streamlines the checkout experience, saving valuable time and effort for consumers.
With their card details securely stored through tokenization, cardholders can confidently make purchases without concerns about their information being compromised. The CVV-less payment experience reflects the continuous efforts of NPCI and RuPay to enhance convenience and security in digital transactions, further reinforcing India’s position at the forefront of the global digital payment landscape.
NPCI explained that tokenization is a technology that ensures the security of card transactions without sharing actual card details with the merchants. When a cardholder chooses to save their card for a domestic e-commerce transaction, they authenticate the transaction by entering the card details (card number, CVV, card expiry date) and completing a one-time activity of entering the One-Time Password (OTP) for two-factor authentication. These details are then tokenized and securely stored with the merchant.
The introduction of tokenization provides significant benefits to cardholders, as their real card details are not stored by the merchant, thus protecting them from potential cyber fraud. Merchants who support CVV-less payments can now facilitate subsequent transactions without requiring customers to enter the CVV or other card details again. Instead, customers can simply complete the payment process by entering the OTP, streamlining the checkout experience and enhancing security.
RuPay’s implementation of Card on File Tokenisation in 2021 aligns with the guidelines set by the Reserve Bank of India (RBI) and aims to enhance security for all RuPay cardholders during domestic e-commerce transactions. The move highlights NPCI’s commitment to continuously improving the security and convenience of digital payments in India.
By introducing the CVV-less payment experience, RuPay, and NPCI are addressing the evolving needs of cardholders and merchants in an increasingly digital and fast-paced environment. The seamless and secure nature of this payment solution not only simplifies the checkout process but also instills confidence in consumers to transact securely online. It further aligns with the government’s vision of promoting digital payments and building a robust and secure digital ecosystem in the country.
Conclusion
As India’s homegrown card network, RuPay has played a crucial role in driving financial inclusion and expanding access to digital payment services across the country. The introduction of innovative features like CVV-less payments demonstrates NPCI’s commitment to leveraging technology and collaborating with stakeholders to create cutting-edge solutions that benefit both consumers and merchants.
In conclusion, NPCI’s announcement regarding the CVV-free payment experience for RuPay cardholders marks another milestone in the evolution of digital payments in India. By adopting tokenization technology and eliminating the need for CVV during transactions, NPCI is ensuring enhanced security, convenience, and trust in the digital payment ecosystem.
With RuPay leading the way, India’s domestic card network continues to innovate and provide solutions that cater to the evolving needs of cardholders and merchants, reinforcing the nation’s position as a global leader in digital payments.
