Paytm, one of India's top digital payments companies, recently helmed the country's largest ever public issue to raise Rs.18,300 crore. Since then, the company has been waging a perception battle seeking to explain its business model to investors as well as investment advisors.
Side-by-side, Paytm is also expanding use cases for its services. Having launched its branded transit card for paying for metro services, bus, train and parking at select cities, the company has now brought out a card-on-file tokenization option for which it has partnered with top digital brands and payment biggies Mastercard and Visa.
The Paytm Payments Bank Transit Card is available currently in Hyderabad and will soon be rolled out across the country as part of a "One Nation, One Card" plan that equips owners to cover all their daily needs.
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Transit card and tokenization - what do they offer?
The company said in a statement that Paytm Bank users will no longer need to carry multiple cards in their wallets as the Transit Card also enables ATM withdrawals. The card, launched in a partnership with the Hyderabad Metro Rail, can be obtained via a simple application submitted digitally with the option of online recharges. The card gets delivered at the user's doorstep or they can buy it at designated sales points.
In another initiative, the company also announced a tokenization feature that would allow users to avoid entering their credit or debit card details each time they make an online transaction. Currently, the feature is available for purchases on Myntra, Dominos Pizza and Oyo Rooms, among others.
Paytm Payments Services CEO Praveen Sharma believes that with this initiative from the company, the merchant partners will be able to offer seamless, secure payments to their users. The company tied up with Mastercard, Visa and Rupay to offer their payment token gateway to the eCommerce platforms and merchants.
With the partnership, the card on file tokenization service will be available for all of Paytm's consumers and merchants, the company said. It is aligned with the Reserve Bank of India's (RBI's) guidelines which said that “saved cards” feature won't be allowed on a merchant network anymore, a press statement says.
Paytm mentioned that "a tokenized card transaction is considered to be safer as the user's actual card details are not shared with the merchant. Instead, tokenization makes way for the card's details to be stored as a unique, irreversible ‘digital token' instead of a 16-digit number," it adds.
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