Mastercard has introduced Cardholder Verification Code (CVC)-less online transactions for its debit and credit cardholders in India who have tokenized their cards on merchant platforms.

The company said the move aims to reduce checkout time whilst making virtual transactions easier and more secure.

According to guidelines issued by the Reserve Bank of India, merchants will only collect the CVC once during the tokenization of the card. From the second transaction onwards, cardholders will be required to select their tokenized card from the checkout page and confirm the one-time password (OTP).

Several e-commerce companies in the country including Cashfree Payments and Zomato have already adopted CVC-less payments.

Mastercard claims that by avoiding the need for CVC, merchants will benefit from higher authorisation rates and reduced checkout abandonment.

The company added that the payments are secure as when payments made using an OTP ensure that only authorised users can complete transactions.

Anubhav Gupta, senior vice president, South Asia, Mastercard, said: “Mastercard is committed to delivering innovative and secure payment solutions that protect both merchants and consumers. Besides enhanced data security, CVC-less payments on tokenized cards come with benefits that make the online domestic card payment experience smoother and safer.”

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