RBI has extended scope of tokenisation by including wrist watches and bands under it
Soon online card transactions would also be possible through “wearable items” like wristwatches and bands, as the Reserve Bank of India (RBI) has decided to extend the facility of conducting online activities through these equipments, apart from the already in use mobile phones and tablets.
“The facility was available only for mobile phones and tablets of interested card holders… There has been an uptake in the volume of tokenised card transactions during the recent months. On a review of the framework and keeping in view stakeholder feedback, it has been decided to extend the scope of tokenisation to include consumer devices like laptops, desktops, wearables (wrist watches, bands, etc.), Internet of Things (IoT) devices, among others,” a circular issued by the RBI said.
The facility of conducting transactions through such devices is called tokenisation. In other words, tokenisation means replacing the details of the actual card with an alternative code referred to as a “token”, which is unique for a combination of card, token requestor and identified device.
A tokenised card transaction is considered safer as the actual card details are not revealed to the merchant during the process.
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