New Delhi [India], October 9 : One97 Communications, which owns India's leading payments and financial services company Paytm on Monday announced that its wholly-owned subsidiary Paytm Payments Services Limited, has become the first in the industry to enable merchants with alternate ID-based Guest Checkout solution across networks.
This was to allow customers to checkout as a guest without saving sensitive card details on an e-commerce or merchant website for a transaction, the fintech firm said in a release.
This solution will cut down the long process of signing up for an account on the merchant website by sharing additional information and making purchases faster. To enable such transactions, Paytm has integrated with card networks to generate alternate ID for guest checkout transactions.
Guest checkout solution enhances cardholders' safety in an online transaction and protects them from potential data breaches. This solution eliminates the risk of data breach as until now these card details were being passed to subsequent entities in the transaction flow to authorize and process the transaction.
Paytm in the release said the solution meets RBI's guidelines as the regulator had mandated that entities involved in card transaction processing cannot save sensitive card credentials for guest checkout transactions and that the card number has to be replaced by an Alternate ID associated with the card information, by October 31, 2023.
"As the first to go live with alternate ID solution, we continue to innovate and bring merchants the best of payment solutions. With this, we are empowering cardholders' security and allowing fast guest checkout for customers, making transactions more efficient," a Paytm Payments Services Limited spokesperson said, as per the release.
"This eliminates core risks like misuse of sensitive card information and aligns with RBI's guidelines to provide a secure transacting experience to our users. We continue to focus on compliance and safe payments for all," the spokesperson added.
Ramakrishnan Gopalan, Head - Products and Services, India and South Asia, Visa said, "Visa's alternate ID solution, in collaboration with Paytm, revolutionizes payment security by blending guest checkout convenience with robust security measures. This solution is in line with RBI guidelines and aligns with Visa's objective of enhancing payment ecosystem security, safeguarding sensitive card data, and facilitating a user-friendly and compliant transaction experience. The implementation of alternate ID is a significant stride towards accelerating the growth of secure digital payments in India."
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