Paytm owned by One97 Communications Limited has become the first in the industry to enable merchants with Alternate ID (ALT ID) based Guest Checkout solutions across networks, a statement issued by the company read. This allows customers to checkout as a guest without saving sensitive card details on an e-commerce/merchant website for a transaction, it added.  

The guest checkout solution cuts down the long process of signing up for an account on the merchant website by sharing additional information and making purchases faster. To enable ALT ID transactions, Paytm has integrated with card networks to generate alternate IDs for guest checkout transactions. 

The company claimed that the guest checkout solution enhances cardholder's safety in online transactions and protects them from potential data breaches. The solution creates an Alternate ID for customers, wherein they will enter their complete card details to process a transaction instead of entering account details and passwords for an occasional purchase. 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 authorise and process the transaction. Also, Paytm offers an easy integration to enable this service on merchants' websites.   

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 card information, by October 31, 2023. 

Paytm Payments Services Limited Spokesperson said, “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. 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.” 

Ramakrishnan Gopalan, head of products and Services, India and South Asia, Visa said, “Visa’s ALT ID solution, in collaboration with Paytm, transforms 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 ALT ID is a significant stride towards accelerating the growth of secure digital payments in India." 

Anubhav Gupta, Senior Vice President, South Asia, Mastercard, said, “Mastercard is glad to collaborate with Paytm for its Alternate ID-based guest checkout solution that will allow consumers to conclude transactions on e-commerce platforms without saving 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.”