I am an avid online shopper. 95% of all my shopping is done online. However, before I discovered the joy of it, I had many reservations about online shopping, as most people do. Would the quality, design, size, and pattern of what I ordered be the same as the images shown online? Would the site deliver what I ordered, and in good condition or would I be cheated out of my money? Would my payment details be safe with the sites I am buying from?
Over the years the previous questions have been answered, and I have become an expert online shopper. I have learned to identify the right sizes for me and have developed an eye to pick out websites that deliver what they promise. I have not had a single complaint in all these years as whatever I have ordered so far, from clothes to furniture and gadgets to fragile items, have all been delivered to me in impeccable condition.
Yes, all my worries have ceased, except one. Each time I make a payment on an online site I find myself wondering if my payment details are safe. I keep worrying if they will be misused. We have all heard enough stories about people being scammed online.
So, when I read that RBI has mandated every e-commerce platform to go in for tokenization by the 30th of September 2022 I was intrigued and wanted to know more about this term, ‘tokenization’. After all, I am an avid online shopper, as I stated earlier.
This is what I learned about tokenization:
What is Tokenization?
Tokenization is the process of replacing sensitive data, like a bank account number or credit card number, with unique identification symbols that retain all the essential information about the original data without compromising its security. This data is stored as a token.
The tokenization process removes any connection between the transaction and the sensitive data, which limits its exposure to breaches.
Tokenization helps to minimize the amount of data a business needs to keep on hand.
How does Tokenisation help?
Tokenization helps protect businesses from the negative impacts of data theft.
It doesn’t slow down the payment process. In fact, it improves user experiences whether online, mobile, or in-app.
It ensures smooth payment experiences and satisfied customers.
The tokenization feature can foster customer trust and loyalty.
Big e-commerce players have fully embraced tokenization with the majority of customers tokenized. E-commerce platforms like Amazon are ready for tokenization and are working with remaining partners (banks and networks) to get them prepared. However, some hiccups and customer disruption are expected as the smaller merchants still need time to be completely ready with the infrastructure and to revamp their systems.
Digital is no longer an alien word. The world has embraced it and is matching its stride. Online is the place to be at. If e-commerce sites wish to build a loyal clientele who will not only return to them but recommend them to others too, then they must embrace tokenization. If I know my crucial data is safe on a site I like to buy from, they have my loyalty as a customer.