Paytm Brings Its Card-On-File Tokenization To Myntra, Oyo, Domino's, Others

New Delhi: Digital payments company Paytm on Tuesday announced that its wholly-owned subsidiary Paytm Payments Services Ltd (PPSL) has made strides with its card-on-file tokenization or "Paytm Token Gateway".

The company, in a release, said it has partnered with platforms such as Myntra, Oyo, Domino's and others, while also joining hands with payment giants like Visa, Mastercard and RuPay.

With the partnership, the card on file tokenization service will be available for all of Paytm's consumers and merchants, the company said. It is aligned with the Reserve Bank of India's (RBI's) guidelines which said that “saved cards” feature won't be allowed on a merchant network anymore, it added.

Paytm mentioned that "a tokenized card transaction is considered to be safer as the user's actual card details are not shared with the merchant. Instead, tokenization makes way for the card's details to be stored as a unique, irreversible ‘digital token' instead of a 16-digit number."

Without the card tokenization feature, users will have to feed their entire 16-digit credit or debit card number every time they do an online payment or transaction.

Praveen Sharma, MD & CEO, Paytm Payments Services Ltd. said, “Tokenization is the future of digital payments and also ensures safety, as a user's card details are not shared with anyone. Our merchant partners can now offer seamless, secure payments to their users. At Paytm, it is of paramount importance to ensure secure digital payments and we are happy to offer Paytm Token Gateway to India's merchants and online e-commerce platforms along with our partners Visa, Mastercard and Rupay.” 

As per the RBI guidelines, all merchants or e-commerce stores have to comply with the new card-on-file tokenization feature by December 31, 2021.