Card transactions done online through wearable devices namely wrist watches and bands will now be allowed as the Reserve Bank of India (RBI) has decided to give nod to facility of conducting online activities through these equipments, apart from the mobile phones and tablets, that are already approved.
“The facility was available only for mobile phones and tablets of interested card holders… There has been an uptake in the volume of tokenised card transactions during the recent months. On a review of the framework and keeping in view stakeholder feedback, it has been decided to extend the scope of tokenisation to include consumer devices like laptops, desktops, wearables (wrist watches, bands, etc.), Internet of Things (IoT) devices, among others,” said a circular issued by the RBI.
The facility of performing transactions via such smart devices are termed as tokenisation.
Also Read: PhonePe Account Aggregator bags in-principle approval from RBI
A tokenised card transaction is seen as a safe mode as the actual card details are not disclosed to the merchant while conducting the process.
