September 2022 Summaries

Basis Theory Elements can replace Stripe Elements in a Next.js donation application to capture card data within a PCI-compliant environment while preserving Stripe for payment processing and reducing direct processor coupling. The process uses separate public and private Basis Theory applications, Stripe publishable and secret keys, and a Basis Theory Reactor configured to create Stripe payment methods securely. Developers replace Stripe’s provider and payment fields with Basis Theory’s React provider and CardElement, tokenize card details in the frontend, and send the resulting token and payment amount to a new backend endpoint. That endpoint passes the token to the Reactor, which detokenizes it only within the secure environment, creates a Stripe payment method, and returns its ID for Stripe to create and confirm a payment intent. The approach keeps plaintext card data out of the application, permits token storage and backend-controlled payment workflows, and can later support migration of existing Stripe payment methods, tokenization of other sensitive information, and use of alternative payment processors.

Basis Theory’s tokenization platform and serverless Reactors can generate invoices containing sensitive customer information without exposing plaintext data within an application, supporting zero-trust security practices and reducing compliance burden. The described approach sends a partially completed PDF, encoded as base64, along with token IDs to a Reactor, where the IDs are automatically detokenized and inserted into the document using the Node.js pdf-lib library. Keeping non-sensitive invoice content in the application limits Reactor processing and simplifies error handling, although the platform’s 1 MB request limit may constrain larger PDFs. The process involves locating PDF text coordinates, drawing sensitive fields such as account numbers and addresses in the appropriate positions, returning the finished PDF as encoded data, testing the function locally, and then deploying it as a Reactor.

India’s fintech sector has expanded rapidly, with an 87% adoption rate and Reserve Bank of India projections placing its value at $150 billion by 2025, driven in part by an increasingly active regulatory approach. The country’s strategy centers on financial inclusion for its large and economically diverse population, using programs such as Jan Dhan accounts and investments in digital-payment infrastructure including UPI, IMPS, NEFT, Aadhaar Pay, and BHIM to broaden access to financial services and reduce reliance on cash. Growing internet use and high-profile data breaches have also made consumer protection a priority, prompting RBI measures such as mandatory credit-card tokenization and stricter rules for digital lenders to limit fraud, improve disclosures, and protect customer data. India additionally promotes public-private collaboration by encouraging public-sector banks and fintech companies to form partnerships and co-lending arrangements, seeking to combine technological innovation with regulatory credibility and wider consumer trust.

Basis Theory announced updates centered on modernizing its Elements integration and simplifying application setup. Element targeting now uses React Refs, while the older getElements method was scheduled for deprecation on November 15, 2022, although existing implementations would continue functioning; new Element capabilities would require Refs. Elements also gained programmatic blur and focus controls for input fields, enabling more flexible form experiences. Application types were consolidated from Server to Server, Elements, Client Side, and Management into Public, Private, and Management, with Public replacing Client Side and Elements, Private replacing Server to Server, and Management unchanged. Additional improvements included a fix for detokenizing aliased tokens, expanded Expressions Reveal functionality through onChange, resolution of a memory issue involving multiple Elements, Web Portal usability enhancements, and the launch of echo.basistheory.com as a simpler testing environment.