HSBC bank has tied up with Google Pay to enable secured tokenization of its credit cards which will allow payments using Google Pay for NFC (Near Field Communications), QR Pay and in-app purchases. HSBC credit cards can now be stored in Google Pay and used for contactless payments.
Tokenization enables payments to be made without sharing the card number, expiry date or security code and instead of sharing a token number specific to the card. The card network would identify the card and process the payment based on the token number. This substantially reduces the risk of fraud.
Ramakrishnan S., Head-Wealth & Personal Banking, HSBC India, “We believe that our partnership with Google Pay through tokenization will be critical in ensuring that the security of our customer’s credit card details is not compromised. We are the first international 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 our network partner, VISA who has enabled this collaboration. Our focus continues to be on delivering a secure, efficient and convenient banking secure, supported by technology and innovations.”
Customers who have a phone which supports NFC can hold it near the point-of-sale device until the transaction is completed on GPay. If the transaction amount is above the RBI prescribed threshold limit (currently Rs. 5000), the customer needs to enter the credit card PIN to complete the transaction.