Paytm, the Indian fintech giant, unveiled its Alternate ID-Based Guest Checkout Solution on Monday, October 9, enhancing the transaction experience for users who prefer to checkout as guests. This solution emerges days after the Reserve Bank of India (RBI) introduced new Card-on-File (CoF) tokenisation measures, marking an industry-first initiative by Paytm.
This innovative solution, developed by Paytm’s subsidiary, Paytm Payments Services Limited (PPSL), is accessible for integration on merchant applications and websites. It facilitates a frictionless transaction process for users checking out as guests, negating the need for saving sensitive card details on the respective platforms. This not only speeds up the purchase process but also removes the requirement of account creation on merchant sites, which often requires sharing additional personal information.
Tokenisation technology plays a pivotal role in this offering. The technology substitutes the original 16-digit credit or debit card number with a distinctive token. This token, specific to the individual’s card, acts as an alternative identifier, safeguarding users against potential misuse and data theft during transactions on merchant platforms.
For occasional purchases, the newly launched solution generates an alternate ID for users. Customers input their complete card details to facilitate a transaction without entering account details and passwords, making the process quicker and more secure. With this approach, the risk of sensitive card information misuse is mitigated, aligning with the recent guidelines issued by RBI, as it obviates the need for merchants to store customers’ personal data.
The RBI’s recent CoF tokenisation guidelines necessitate users to save their card details as tokens on merchant platforms. These tokens, which uniquely identify card numbers, weren’t available for transactions involving guest checkouts until PPSL’s new service intervention. With the introduction of alternate IDs, users now have the freedom to transact securely as guests, using these IDs instead of actual card numbers.
This development is in sync with RBI’s mandates, where over 56 crore tokens have been created, processing transactions amounting to INR 5 lakh crore. The central bank has proposed initiating CoF token creation at issuer bank levels, allowing users to generate tokens through their banking platforms, instead of relying on ecommerce sites or merchants.
Paytm’s Alternate ID-Based Guest Checkout Solution marks a significant stride towards ensuring secure and rapid transactions for guest users. By minimising risks associated with sensitive data misuse and adhering to RBI’s stringent security guidelines, this solution promises a seamless and safe transacting experience for all users.
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