Google Pay launches cards tokenization with SBI, IndusInd Bank, HSBC and Federal Bank in collaboration with Visa

Google Pay announced further expansion in the footprint of bank partners offering cards tokenisation on the Google Pay app, a feature that enables users to make debit or credit card payments through a secure digital token attached to their phone without having to physically share their credit or debit card details.

After successfully rolling out tokenization with Kotak Mahindra Bank, SBI Cards and Axis Bank, Google Pay has now added debit cards by SBI, IndusInd Bank and Federal Bank and Credit cards by IndusInd Bank and HSBC India to its slate.

The feature also works with online merchants, delivering more native and seamless OTP experiences without redirecting users to 3D Secure sites.

With tokenization, Google Pay will enable safe and secure omnichannel experiences to help consumers:

• Use Near-field communication (NFC) capable devices/ phones to make contactless payments at over 2.5 million Visa merchant locations
• Scan and pay at more than 1.5 million Bharat QR enabled merchants
• Pay bills and recharges from within their Google Pay app using their credit card

SBI is the country’s largest issuer of debit cards and combined with IndusInd Bank, Federal Bank & HSBC credit cards, the development extends the facility of tokenization to millions of card users in India.

Speaking about the roll out, Sajith Sivanandan, Business Head: Google Pay and NBU – APAC said, “We’re committed to offer the most secure payments experience to our growing base of users, and tokenization helps to replace sensitive data such as credit and debit card numbers with tokens, eliminating any chances of fraud. We are hopeful that the tokenisation feature will further encourage users to transact securely and safely in the current times and expand merchant transactions both online and offline. The addition of SBI and Federal debit cards, IndusInd Bank debit & credit cards and HSBC credit cards helps extend this offering to millions of card users on the Visa network. We are working closely with other banking partners to further expand the adoption of card based payments with tokenization in India.”

Commenting on the launch, TR Ramachandran, Group Country Manager, Visa, India & South Asia said, “We’re delighted to partner Google Pay and banks such as SBI and HSBC, on the tokenization initiative in India. With tokenized, contactless forms of payment, millions of mobile first users will be able to use their credit and debit cards on Google Pay, bolstering confidence in a large segment that is new to digital. Visa has already issued over two billion token credentials globally and with Google Pay live in India, we expect to add significantly to those numbers.”

Commenting on the development, Ravindra Pandey, DY. Managing Director (Strategy) & Chief Digital Officer, SBI said, ‘We believe the tokenization of SBI debit cards will provide a contactless, hassle-free and comfortable card payments experience to SBI customers. The tokenization of SBI Debit Cards with Google Pay would also enable our customers to foray into tap & pay mechanism without worrying about carrying their debit cards with them while going shopping. We at SBI always believe in working towards enhancing customer delight by offering customized and smart products and service to them.”

Commenting on this new feature, Ramakrishnan S, Head-Wealth & Personal Banking at HSBC India said, “We have been keenly focused on delivering a more convenient and secure banking experience to our customers. We believe that our partnership with Google Pay through tokenization will be critical in ensuring that the security of our customers’ credit card details are not compromised. We are the first multinational Bank in the country to go live with this capability. Our customers will benefit from the additional safety of using their mobile phone instead of the physical plastic card whilst shopping at merchant stores. I would like to thank Visa, our network partner, for enabling this collaboration. Our focus continues to be on delivering secure, efficient and convenient banking, supported by technology and innovations.”

Speaking about the proposition, Mr. Ritesh Saxena, Head – Direct Banking, IndusInd Bank said, said, “We, at IndusInd Bank put customer convenience and security at the centre of everything that we do. In keeping with this vision, we are delighted to partner with Google Pay to introduce tokenization as a payment method for our debit and credit card holders. Tokenization offers a secured ecosystem that facilitates cardholders to undertake both mobile application based as well as in-store payments, in a convenient manner. Consumers can use the tokens to make purchases like they would with an actual payment card, while merchants can complete a transaction without having to store any sensitive data. Moreover, it does not require merchants to make major changes to their current payment acceptance systems, thereby providing both customers and merchants with a seamless payment experience. We look forward to co-creating more such innovative propositions that will enhance their banking experience.”

Commenting on this new feature, Shalini Warrier, Executive Director, Federal Bank said, “Tokenization of debit cards is yet another key initiative in living up to our mantra of “Digital at the fore, human at the core”. With this feature, offered in association with Google Pay, our debit cardholders will have access to a contactless, convenient & quick card payment experience. Customers will no longer have to worry about carrying their cards or wallets and they can pay with just a “Tap” through mobile phone while shopping at physical outlets. In addition to the ease of payments, there is also an additional layer of security on the card details”

To enable the tap and pay feature using the smartphone phone, users will have to do a one-time set up by entering their card details and follow it by entering the OTP they get from the bank to add their card to the Google Pay app. After the registration, the feature can be used to make payments at NFC-enabled terminals. Tokenization is fast being accepted across merchants with a view to provide users secure checkout experiences and facilitating card transactions. Cards can also be used to make purchases at large online merchants such as Myntra, Yatra, Dunzo and many others. Tokenized cards are also supported on Google Pay for use cases such as mobile recharges, bill payments, insurance payments and many others.