During festive seasons like Durga Pujo and Diwali in India, shopping offline gets crazy. That’s why e-commerce giants are making our life easier when it comes to shopping.
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Now with RBI’s guidelines for making tokenization mandatory by 30th September, you may be wondering what will happen. Don’t worry our favorite online e-commerce stores like Amazon, are ready with tokenization.
You can carry on with seamless transactions while being sure your data is safe.
What exactly is tokenization and why should you care?
Tokenization is as simple as buying a token for your metro rail daily ride. You give money to buy x number of rides from point A to B. All the data is encrypted in the token you get from the metro.
In the digital world, it’s like your online payment data gets transferred or encrypted to a string of random numbers that do not correlate with your actual payment data.
Does Tokenization prevent Data theft?
Most e-commerce platforms pay huge sums to keep their customer data safe. But digital theft is a reality. With tokenization, if the data is compromised somehow, despite best efforts, the stolen data is useless.Even if someone manages to steal data from your digital wallet or e-commerce store account, the data will be a string of random numbers or the token which keeps your money safe. The tokens when they pass through various systems to process the payment act as the agent for your payment details like card number, and expiry date without the payment details being visible. Just like OTP, tokenization is a good initiative to have another additional layer of safety for payment data
Nowadays going digital is not a choice, it’s a mandatory payment option even for retail stores.
When you have e-commerce giants ready with tokenization you can now shop for your loved ones without worry. The best part is that each e-commerce store will generate a different token for the same card information.
What happens if there’s a data breach?
If any data breach occurs, the tokens are automatically canceled without your card data being revealed. That way you don’t have to get a replacement card for a data breach at the retailer’s end.
RBI now makes the banks issuing the cards responsible for keeping card information safe through the tokenization mandate that comes into effect from Oct 1, 2022.
When you pick the ‘pay with a card’ option for any e-commerce platform or wallet, it prompted you to pick a bank. It’s at that time when the card information is inserted, a token is generated which is then used by the merchant to process payment. In this way, the e-commerce site or digital wallet never has your sensitive data stored in their system.
E-commerce platforms like Amazon are ready in time to help you shop safer with tokenization in place. They have embraced tokenization fully, with a majority of their customers tokenized. Tokenization in the industry is good for the transaction ecosystem and the customers as it adds security and safety to every transaction they make online. However, the fact remains that smaller merchants are still not ready completely in terms of infrastructure. More time for readiness across the industry is needed so that there are no disruptions.
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I’m.glad that i came across this site and tapped your link . The information is quite easy to understand and I wanted use this in my upcoming school projects as well. I wa super confuse about this and was searing a lot but that made my mind clogged. Thank you dee for this info
Things and online purchases got easy since the the tokenisation and wallet concept came on online platforms. Just make sure don not save your cards, passwords or any account details for that matter on internet.
I can’t relate much to this as I reside in a different country. I think this is very important though as giving your information to the right people would surely help you keep your privacy. It’s not that you’re hiding something, you just want to at least keep important information to yourself.
Tokenization in e-commerce helps businesses to manage large inventories by breaking them down into smaller, more manageable pieces. By tokenizing inventory, businesses can more easily keep track of stock levels, prices, and other important information. Tokenization can also help e-commerce businesses to protect customer data and reduce the risk of fraud.
I was confused about tokens but this article cleared it up
My auto payment was stopped and I had to reconfigure everything
Thank you for sharing this
Tokenization may be the next step toward safer transactions. It is the next best step of digitalization.
In today’s time, Tokenization is simply the best solution to all kinds of data breaching.
The way it handles data breaches is amazing. Thanks for sharing such a great article. Great explanation.
Thank you giving a brief yet clear explanation regarding tokenization.
Really a good article about tokenization. Much needed one.
The post is very informative for some one like me who did not know about tokenization.
Yes! A great way to secure the transactions and keeping money along with data safe.
It is a good decision to tokenize the transactions. It will give more power to all the stakeholders.
The only question is “”how well it can be implemented?””.”
Thanks for breaking down this concept. I’ve been hearing about it but wasn’t sure what to expect.
This looks like a pretty safe option, especially in times when data theft is so common.
With digitalization this is very important.
It is safer to shop online with tokenization.
Thanks for the information, helped me clear my doubts.
Glad to know that Amazon is ready with tokenization.
I wasn’t aware about tokenization before, your aticle helped me understand the topic better.
All datas are encrypted which is very important.
Wow Amrita, you have explained it with so much ease. Tokenization is absolutely going to help all.
While we are going in for tokenization, I do hope that the transition is going to be smooth for all ecommerce players.
Tokenization is a very important step in online security.
I have been wondering about tokenization and your post has made it very clear.
It will be helpful to both the parties and breach of data becomes impossible or useless
Thanks for explaining how our online shopping experience is going to get better in terms of security.