Mastercard debit and credit card holders can now complete online transactions in India without requiring a Cardholder Verification Code (CVC), the payments firm has announced.

It means that card users who have tokenized their cards on merchant platforms will not require the three-digit number printed on the back of debit and credit cards. The company said the move to CVC-less online transactions aims to reduce the checkout time and make virtual transactions hassle-free and more secure.

According to the Reserve Bank of India’s tokenization guidelines, merchants who adopt tokenized payments will collect CVC only once, while tokenizing the card. From the second transaction onwards, cardholders will be required to select their tokenized card from the checkout page before confirming the one-time password (OTP) and complete the transaction.

In a statement, the firm noted that token-based transactions are inherently more secure as they involve a token expiry and a dynamic cryptogram. In addition, the authenticated user identity check or OTP ensures that only authorized users can complete the transactions, the company said.

“Besides enhanced data security, CVC-less payments on tokenized cards come with benefits that make the online domestic card payment experience smoother and safer,” Anubhav Gupta, Senior Vice President, South Asia, Mastercard added.

Several e-commerce players like Cashfree Payments and Zomato have already adopted the feature. Akash Sinha, CEO and Co-Founder, Cashfree Payments said: “We are excited to introduce CVC-free payments, which reduce friction for cardholders, aligning their payment 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.”