PhonePe tokenizes 1.4 Crore debit & credit cards in line with RBI’s tokenization mandate
- 80% of monthly active users on PhonePe have tokenized their cards following RBI’s tokenisation guideline
- Nearly 100% of eligible transactions on the app are securely processed via tokens now
National, Sep 8th, 2022: PhonePe, India’s leading fintech platform, announced that it has tokenized 1.4 Crore (14 Mn) debit and credit cards on its platform. This is as per RBI’s Card Tokenization mandate to help control the risk of fraudulent activities, and secure users’ card information.
PhonePe is currently among the top digital payment players driving tokenization under its Safecard Tokenization 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% of PhonePe’s active users have already tokenized 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% in comparison with card based transactions, over the past few weeks.
Commenting on the development, Deep Agrawal, Head of Payments at PhonePe said, “We believe card tokenization 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, minimizing 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.’’
PhonePe was founded in December 2015, and has emerged as India’s largest payments app, enabling digital inclusion for consumers and merchants alike. With 400 million registered users, one in four Indians are now on PhonePe. The company has also successfully digitized 30+ million offline merchants spread across Tier 2,3,4 and beyond, covering 99% pin codes in the country. PhonePe forayed into financial services in 2017, providing users with a safe and convenient option to buy 24-karat gold, and has recently also launched silver on its platform. Since then, PhonePe has introduced several Mutual Funds and Insurance products like tax-saving funds, liquid funds, international travel insurance, life insurance, COVID-19 insurance amongst others. Using PhonePe, users can also send and receive money, recharge mobile, DTH, pay at stores and make all their utility payments. PhonePe was recently recognized as the Most Trusted Brand for Digital Payments as per the Brand Trust Report 2022 by Trust Research Advisory (TRA).
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