According to the Mastercard press release, this is the first-ever app of a credit card issuer in India to use Mastercard's tokenisation platform, Mastercard Digital Enablement Service (MDES), that allows payment credentials to be securely tokenised and stored in mobile devices.
"With this service in place, SBI Card Mastercard cardholders need not carry physical cards and can transact at any contactless point of sale terminal using their mobile. So, the cardholders enjoy the benefit of paying up to Rs 2,000 with just a tap on their mobile and for payments above Rs 2,000 they will need to enter their Card PIN on the terminal," the press release stated.
Porush Singh, Division President, South Asia, Mastercard said, "Safety and security combined with quick and convenient payment experience, is at the core of growing India's digital economy. The service will pave the way for a superior mobile-based payment experience for SBI Card cardholders. It will also go a long way towards driving contactless payments, especially in a time when people prefer touch-free transactions in a safe and secure manner."
This feature is based on tokenisation which provides high security and trust to consumers, as the actual card details are not shared with the merchant. SBI Card Mastercard cardholders will have to do a one-time registration of their card on the latest version of their mobile app, as the press release. Once registered, they can complete payments simply by unlocking their phone screen and bringing the mobile near the contactless PoS terminal.
Ashwini Kumar Tewari, MD & CEO, SBI Card said, "Use of contactless payments has been on the rise over past few months, prevailing conditions have further accelerated the pace of adoption by merchants and consumers."
According to a recent survey conducted by Mastercard, over 54 per cent of the respondents said they are aware how to use a contactless card on a PoS machine and 74 per cent said they will continue to make purchases digitally or via contactless modes in the coming times.