Paytm Payment Gateway Leads the Way by Enabling Merchants with Alternate ID based Guest Checkout Solution for Cardholders’ Safety Across Networks

Each time a customer makes a purchase, he navigates through a series of activities, from selecting items in the cart, and selecting a specific payment method, to finalizing the payment. Here, his preferred payment instrument (card, UPI, etc.) is like a key to his wallet, and it needs to be handled with utmost care.

To ensure the safety of such transactions, the RBI previously introduced tokenization—a practice where sensitive card information is transformed into secure tokens, thereby rendering them immune to prying eyes.  However, a gap related to guest checkout transactions prevailed in the digital payment ecosystem. When customers enter their card details on a merchant’s website or app, it poses a considerable risk along the payment journey.

The recent RBI guidelines have ushered a new angle of compliance for Payment Gateways (PGs) and Payment Aggregators (PAs) to ensure safer and more user-friendly digital payment solutions.

What’s in these recent RBI guidelines and how has Paytm adhered to the same with its innovative guest checkout solution? Let’s find out.

Card Data Protection in Guest Checkout: RBI’s Stringent Directive

Consider the following aspects to better understand the need for strict regulations – 

In the past, when customers opted for guest checkout, their card information traversed digitally and was susceptible to interception by malicious actors. While tokenized card data enjoyed robust security measures, the same level of protection was not extended to those who opted for guest checkout. It was the same as carrying the wallet wide open in a bustling market.

The latest guidelines issued by the Reserve Bank of India (RBI) have set forth a significant mandate that has far-reaching implications for the digital payment industry. This mandate revolves around the storage of Card on File (CoF) data. It says that PGs and PAs are not allowed to store CoF data for guest checkout transactions. They need to come up with an alternative solution for the same by Oct 31, 2023.

To comprehend the full scope of this directive, it is imperative to recognize its implications across various stakeholders.

PGs and PAs, which act as intermediaries in the payment process, play a crucial role in ensuring compliance with the RBI’s guidelines. The responsibility lies in handling data securely to facilitate a smooth transition to compliant payment methods. This calls for advanced technological solutions, stringent audits, and continuous monitoring to uphold the highest standards of security.

In this pivotal moment, Paytm Payment Gateway emerges as a pioneer in offering a solution that bridges this security gap. Leveraging the RBI’s latest guidelines, Paytm PG has introduced an ALT ID based guest checkout solution.

Paytm’s Innovative Response: ALT ID for Guest Checkout Compliance

In response to the RBI guidelines, Paytm Payment Gateway has introduced a groundbreaking ALT ID based guest checkout solution to ensure compliance with the RBI’s regulations. The best part is that Paytm has come up with the required solution before Oct 31, 2023 for Indian merchants. This way, they won’t face any issue with the PG integration or payment acceptance during the upcoming festive season. 

ALT ID – The Shield for Guest Checkout Transactions

ALT ID is a secure and dynamic tokenization method introduced by Paytm Payment Gateway. When a customer initiates a guest checkout transaction on a website or app backed by Paytm PG, their card data is no longer exposed in its raw form. Let’s take a step back to understand its importance –

Guest checkout transactions, by nature, involve a customer sharing their complete card details on a merchant’s website or app. Previously, this practice posed security concerns as sensitive card data is transmitted and stored without the protection of tokenization. Recognizing the need to fortify guest checkout transactions, Paytm Payment Gateway’s ALT ID solution steps in as a game-changer. Here’s how it works:

This solution mirrors the established security measures applied to saved or tokenized cards. The result is a transaction that combines the ease of guest checkout with the robust security typically associated with stored card data. In essence, the ALT ID generated by the card networks becomes the protective shield that ensures the card details remain confidential and protected from potential threats throughout the payment journey.

Benefits of Paytm’s ALT ID Solution

• ALT ID elevates the security of guest checkout transactions to a level on par with saved or tokenized cards.
• It aligns seamlessly with the RBI’s directive to ensure that merchants, payment gateways, and payment aggregators remain in full compliance with the regulatory framework.
• While prioritizing security, ALT ID also preserves the convenience of guest checkout and enhances the overall payment experience for customers.

Paytm’s proactive approach positions it as the first payment aggregator to implement ALT ID for guest checkout transactions, setting a precedent for the industry to follow.

How Does Paytm’s Guest Checkout Solution Benefit Merchants?

Paytm Payment Gateway is leading the industry with its ALT ID solution for guest checkout. If you have integrated Paytm Payment Gateway on your website or app to process payments, here’s how this guest checkout solution is advantageous for you:

• You can confidently offer a guest checkout option to your customers, knowing that Paytm’s ALT ID solution aligns with RBI guidelines. 
• It generates unique tokens for guest checkout transactions and ensures the security of cardholder data. This added layer of protection builds trust with customers.
• As customers perceive that their card data is handled with the utmost care and security, they are more likely to complete transactions with peace of mind. This heightened confidence can lead to increased sales and customer loyalty.
• You can position yourself as a forward-thinking and security-conscious business. This can give you a competitive edge in your business niche.

Paytm’s ALT ID solution seamlessly integrates into existing merchant systems with the least disruption and the need for extensive reengineering of payment processes. This means you, as a merchant, won’t face any disruptions or need to make significant changes in the code related to PG integration to accept payments via guest checkout. This is highly beneficial for the upcoming festive/holiday season when you expect higher sales resulting from purchases from new customers.

Availing Paytm’s ALT ID Solution: Simplified for Merchants

If you are eager to leverage Paytm Payment Gateway’s ALT ID solution, you will find the process remarkably hassle-free. Whether you are using our managed checkout flows or have custom checkout systems in place, Paytm PG offers flexibility to accommodate your needs, as defined below:

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