Card Transactions Via Wristwatches, Bands Get RBI Green Light
Card transactions made online using portable devices, namely wristwatches and bracelets, will now be permitted as a Reserve Bank of India (RBI) decided to give a nod to the possibility of carrying out online activities through these equipments, apart from mobile phones and tablets, which are already approved.
“The facility was only available for cell phones and tablets of interested cardholders… There has been an increase in the volume of tokenized card transactions in recent months. After reviewing the framework and taking into account stakeholder feedback, it was decided to extend the scope of tokenization to include consumer devices such as laptops, desktops, wearable devices (wristwatches, bracelets, etc.), Internet of Things (IoT) devices, among others, ” says a circular issued by the RBI.
The ability to transact through such smart devices is called tokenization.
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A tokenized card transaction is considered a safe mode because the actual card details are not disclosed to the merchant when completing the process.