June 15, 2024 10:15:21 booked.net

Paytm Introduces Innovation IS-Based Merchant Checkout Solution

Paytm Payments Services Limited, a subsidiary of One97 Communications, has taken a pioneering step in the industry by offering an alternative ID-based guest checkout solution for merchants. This innovative solution allows customers to complete purchases on a merchant’s website without the need to save their card details, streamlining the process and enhancing security. Paytm has collaborated with card networks to create these alternative IDs, ensuring compliance with RBI’s guidelines and safeguarding cardholder data. Developed in partnership with Visa, this solution aims to bolster payment security and facilitate secure digital transactions within India.

One97 Communications, the parent company of India’s leading payments and financial services provider, Paytm, announced on Monday that its wholly-owned subsidiary, Paytm Payments Services Limited, has become the first in the industry to enable merchants with alternative ID-based Guest Checkout solutions across various networks.

This initiative allows customers to make purchases as guests without the requirement to store sensitive card information on an e-commerce or merchant website. This eliminates the need for customers to go through the lengthy process of creating an account on the merchant’s website, as they can now share minimal additional information, making their transactions quicker. To enable such transactions, Paytm has seamlessly integrated with card networks to generate alternative IDs for guest checkout processes.

The Guest Checkout solution significantly enhances the security of cardholders during online transactions and shields them from potential data breaches. This solution effectively eliminates the risk of data breaches, as, until now, sensitive card details were passed on to subsequent entities in the transaction flow for authorization and processing.

Paytm has emphasized that this solution complies with RBI’s guidelines. The regulator mandated that entities involved in card transaction processing cannot retain sensitive card credentials for guest checkout transactions, and that the card number must be replaced with an Alternate ID linked to the card information by October 31, 2023.

A spokesperson for Paytm Payments Services Limited stated, “As the first to implement an alternative ID solution, we are committed to innovation and providing merchants with top-notch payment solutions. This move enhances cardholder security while allowing for quick guest checkouts, thereby making transactions more efficient. It eliminates crucial risks like the misuse of sensitive card information and aligns with RBI’s guidelines to ensure a secure transaction experience for our users. Our focus remains on compliance and secure payments for all.”

Ramakrishnan Gopalan, Head of Products and Services for India and South Asia at Visa, commented, “Visa’s alternative ID solution, developed in collaboration with Paytm, revolutionizes payment security by combining the convenience of guest checkout with robust security measures. This solution aligns with RBI guidelines and supports Visa’s mission to enhance payment ecosystem security, protect sensitive card data, and facilitate user-friendly and compliant transaction experiences. The implementation of alternative IDs marks a significant step toward accelerating the growth of secure digital payments in India.”