According to the industry body CCI, online retailers are likely to lose 20-40 per cent of their revenue by December 31. From January, the RBI This is because the suggested tokenization takes effect. Merchants will have to abandon the practice of storing users’ debit and credit card information. Instead of card details, the RBI has introduced a token system. Putting forward. C.C.I. This was mentioned in a virtual session on ‘Digital Payments and India Media Consumer’ organized by the Media and Entertainment Committee. Also Read: CII says the session aims to bring out the issues that consumers are going to face from next year. Clarified. RBI Sijo Kuruvila George, Executive Director, Alliance of Digital India Foundation (ADIF), said: Technology integration, revenue loss and consumer education have become the responsibility of traders. But he added that he did not have enough time for this. It is estimated that there are about 98.5 crore cards in India. With a daily turnover of about 1.5 crore, the turnover is around Rs 4,000 crore. According to the RBI’s annual report, the value of the Indian digital payment industry in 2020-21 was Rs 14,14,85,173 crore. Even during the Kovid era, digital payments led to economic growth. Although the purpose of the Reserve Bank of India is to protect the interests of consumers, matters related to implementation are challenging. Also Read: In order for a customer to be ready for a tokenization solution (i.e., customers must successfully complete the transaction using tokens instead of their card information) there are three steps to complete. But none of this has been agreed yet. The CCI said the leap without the provision of infrastructure would adversely affect transactions. Clarified.
What is tokenization?
At present online sites collect information about the cards that users use to complete payments for the future. This will change with the new tokenization method. No one can collect card information except the bank / card network that issued the credit / debit card. The new method is to use a token instead of entering the card information for the payment. Sites will receive this token when completing transactions. Also Read: The same card can have multiple tokens on each website. As a result, there is no risk of any site leaks. If the token is to be kept in place of the card from January, the user must give his consent at the time of payment. OTP received on the phone. Turn the card into a token only when issued. If the tokenization is not desired the user will have to enter the card information and make a payment each time. But the allegation is that this will keep users away from portals and transactions.