What Is Cards Tokenization & How To Use It In Google Pay?
Google has further expanded its list of bank partners by offering card tokenization service on its Google Pay app.Â
Google Pay app users can now use the secure digital token service on debit cards by SBI, IndusInd Bank, and Federal Bank and Credit cards by IndusInd Bank and HSBC India.Â
Google Pay previously announced the new service with Kotak Mahindra Bank, SBI Cards, and Axis Bank.
Before we talk more about Google Pay's association with leading banks, let's understand what Cards Tokenization is and the way it enhances the digital payments experience.
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What Is Cards Tokenization?
Card Tokenization may be a secure mode/service that permits credit and debit cardholders to form digital payments through a secure digital token attached to their phone.Â
It's one among the foremost secure ways to conduct digital payments wherever credit or debit cards are involved. With Cards tokenization, users can make payments via credit/debit cards without having to physically share their sensitive details.Â
The sensitive detail (Card number, CVV, etc.) is replaced by a non-sensitive algorithmically generated number, called a 'Token' which makes it impossible for exploiters to misuse credit/debit card holders' sensitive information.
The most common example of card tokenization is online payments on Google's Play Store and Apple's App Store.Â
If you've got ever purchased an app/service on the Play Store or App Store, you had used the cardboard tokenization service.Â
Your credit/debit card information is tokenized and stored on your device to enable payments on the app stores.Â
Since the alphanumeric code can't be traced back to the user, your credit/debit card information is safe.
With Google Pay, the cardboard tokenization feature will enable safe and secure omnichannel experiences to assist consumers.Â
Google mentions that the cardboard tokenization in Google Pay app also will work with online merchants, delivering more native and seamless OTP experiences without redirecting users to 3D Secure sites.Â
This may also hamper the general transaction time. Google Pay Card Tokenization feature will have the subsequent benefits.
Use Near-field communication (NFC) capable devices/ phones to form contactless payments at over 2.5 million Visa merchant locations.
Scan and pay at quite 1.5 million Bharat QR enabled merchants
Pay bills and recharges from within their Google Pay app using their credit card
Since the cardboard tokenization in Google Pay are going to be facilitated on the Visa network, it can further encourage digital payments within the country.Â
The contactless sort of payment will allow mobile users to conduct digital payments on the Google Pay app via their credit/debit cards.Â
You'll keep your credit/debit cards reception and make offline purchases at physical outlets with only one tap via your smartphone.Â
Google also mentioned that the team is additionally in talks with other banking partners to further expand the adoption of card-based payments with tokenization in India.
It is also worth mentioning that card tokenization doesn't burden the merchants since it doesn't require them to form any major changes to their current payment acceptance systems.
How To Enable Cards Tokenization On Google Pay?
Open 'Set up payments methods' in Google Pay app to try to to a one-time set-up.
Tap on 'Add credit or open-end credit and click on on proceed.
Enter your card number.
Once you've got successfully registered your card within the Google Pay app, the feature are often wont to make payments at NFC-enabled terminals.Â
The service also will allow you to form purchases at large online merchants like Myntra, Yatra, Dunzo, etc.