Mastercard has launched Cardholder Verification Code-less online payments for debit and credit cardholders in India who have tokenized their cards on merchant platforms.
According to the Reserve Bank of India’s guidelines, merchants implementing tokenized payments will only collect the CVC once. Subsequent transactions will require shoppers to select their tokenized card at the checkout page, confirm a one-time password, and complete their purchase without entering the CVC again.
E-commerce companies such as Cashfree Payments and Zomato have already adopted CVC-less payments. Mastercard indicates that this approach results in higher authorization rates, fewer abandoned checkouts, and an improved customer payment experience.
“Besides enhanced data security, CVC-less payments on tokenized cards offer advantages that enhance the smoothness and safety of the online domestic card payment experience,” says Anubhav Gupta, SVP, South Asia, Mastercard.