One97 Communications Limited, the parent company of Paytm, India’s leading payments and financial services provider, has made a groundbreaking announcement. Its wholly-owned subsidiary, Paytm Payments Services Limited, has become the first in the industry to offer merchants an Alternate ID (ALT ID) based Guest Checkout solution across networks. This innovative solution allows customers to make purchases as a guest without the need to store sensitive card details on an e-commerce or merchant website during a transaction.

The Guest Checkout solution streamlines the lengthy process of signing up for an account on a merchant website by sharing additional information, resulting in quicker and more efficient purchases.

To facilitate ALT ID transactions, Paytm has integrated with card networks to generate alternate IDs for guest checkout transactions.

This Guest Checkout solution not only enhances the safety of cardholders during online transactions but also safeguards them against potential data breaches. The solution creates an Alternate ID for customers, enabling them to enter their complete card details to process a transaction instead of sharing account details and passwords for occasional purchases. This eliminates the risk of data breaches, as previously, these card details were passed on to subsequent entities in the transaction flow for authorization and processing. Paytm also offers an easy integration process for merchants to enable this service on their websites.

This solution aligns with the Reserve Bank of India’s (RBI) guidelines, which mandated that entities involved in card transaction processing should not store sensitive card credentials for guest checkout transactions. Additionally, the card number should be replaced by an Alternate ID associated with card information by October 31, 2023.

A spokesperson for Paytm Payments Services Limited stated, “As the first to implement the Alternate ID solution, we continue to innovate and bring the best payment solutions to merchants. With this solution, we prioritize the security of cardholders and facilitate fast guest checkouts, enhancing transaction efficiency. It eliminates core risks associated with the misuse of sensitive card information and aligns with RBI’s guidelines to provide 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, commended the initiative, saying, “Visa’s ALT ID solution, in partnership with Paytm, revolutionizes payment security by combining guest checkout convenience with robust security measures. This solution aligns with RBI guidelines and our objective at Visa to enhance payment ecosystem security, protect sensitive card data, and provide a user-friendly and compliant transaction experience. The implementation of ALT ID marks significant progress in accelerating the growth of secure digital payments in India.”

Anubhav Gupta, Senior Vice President for South Asia at Mastercard, also expressed support, stating, “Mastercard is pleased to collaborate with Paytm on its Alternate ID-based guest checkout solution, allowing consumers to complete transactions on e-commerce platforms without the need to save card details. Introducing and supporting innovative products and solutions that are compliant, user-friendly, and enhance the safety and security of digital payments is an integral part of Mastercard’s commitment to its partners and cardholders.”

  Anubhav Gupta, India, One97 Communications, Paytm, Paytm Payments Services, Ramakrishnan Gopalan