Mastercard Unveils CVC-Less Online Transactions To Benefit E-Commerce Platforms

Card payments giant Mastercard has launched the Cardholder Verification Code (CVC)-less online transactions for its credit and debit cardholders. This offering will be available for cardholders with tokenized cards across merchant platforms.

Mastercard unveils CVC-less online payments for debit and credit card holders

The launch of this offering will reduce the checkout time while also making virtual transactions easier and faster. The move will also guarantee that transactions are more secure.

CVC is a three-digit number on debit and credit cards. The launch of this CVC-less online payment will solve a significant issue facing several card users across India. The Reserve Bank of India has issued new tokenization guidelines requiring merchants that have adopted tokenized payments to gather the CVC data once while tokenizing the card.

CVC-less payments are becoming increasingly popular. Some of the largest e-commerce platforms, such as Cashfree Payments and Zomato, have adopted CVC-less payments. These platforms have eliminated CVCs to enjoy a wide range of benefits.

Some of the benefits that e-commerce platforms enjoy by enabling CVC-less payments include a higher authorization rate. They also reported a declining checkout abandonment rate, significantly improving the customer payment experience.

CVC-less payments improve efficiency

The CEO and co-founder of Cashfree Payments, Akash Sinha, commented on the development, saying that the platform was eager to have CVC-free payments that reduced friction for the cardholders. The executive opined that the initiative aligned with its vision to innovate and create solutions that improved efficiency across digital payments.

“We are excited to introduce CVC-free payments, which reduce friction for cardholders, aligning their payments experience with other popular modes like UPI Intent. At Cashfree Payments, our vision is to consistently innovate and create solutions that make digital payments faster, safer, and more convenient,” Sinha said.

Another platform that is also adopting CVC-less payments is Zomato. The CFO of Zomato, Akshant Goyal, said that CVC-less payments enable quick transactions and better convenience for customers without compromising on the security of payments.

The Senior Vice President of Mastercard for South Asia, Anubhav Gupta, said the company was committed to creating secure and innovative payment solutions that protected consumers and merchants. Moreover, besides improving data security, CVC-less payments also offered benefits that improved the easiness and safety of the domestic card payment experience.

The launch of this offering comes after Mastercard announced the release of the Mastercard Receivables Manager. The latter is a new automated solution that streamlined how businesses accept and process virtual card payments.

This innovation aligns with the virtual card platform of Mastercard, with the company offering choices in the payments made to players across the sector. The initiative also accelerated the digitization of B2B transactions by buyers and suppliers. The launch also ensures that suppliers no longer have to capture and enter the virtual card data manually.