PhonePe, India’s leading fintech platform, announced that it has tokenised 1.4 Crore (14 Mn) debit and credit cards on its platform. This is as per RBI’s Card Tokenisation mandate to help control the risk of fraudulent activities, and secure users’ card information.
PhonePe is currently among the top digital payment players driving tokenisation under its Safecard Tokenisation solution. Following RBI’s guideline, PhonePe had started creating tokens in December 2021 and was the first in the payments ecosystem to provision tokens with all three major card networks – Visa, Mastercard and RuPay. Currently, over 80 per cent of PhonePe’s active users have already tokenised their cards, and the company is on track to meet RBI’s September 30th deadline.
PhonePe also started processing token based transactions as early as April 2022, and currently processes almost all eligible transactions through tokens, making it one of the market leaders in processing token transactions. The success rate of transactions processed via tokens on PhonePe has shown an improvement of ~2 per cent in comparison with card based transactions, over the past few weeks.
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Commenting on the development, Deep Agrawal, Head of Payments at PhonePe said, “We believe card tokenisation is a very progressive move by the RBI, and we are on track to meet the September 30th deadline. PhonePe Safecard solution enables our users and merchant partners to continue experiencing the convenience of saved card transactions with increased security. For customers, their card details are saved only by the issuer banks and card networks, minimising the risk of data leakage and transaction fraud. For merchants, safer transactions translate to consumer confidence in using cards on online platforms, thereby helping merchants witness growth in overall transactions.’’
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