Paytm launches transit cards, card-on-file tokenization options
Paytm, one of the top Indian digital payment companies, recently led the largest public problems in the country to raise Rs.18,300 Crore. Since then, the company has conducted a battle of perceptions that seek to explain its business model to investors and investment advisors.
Side-by-side, Paytm also expanded use cases for its services. After launching a branded transit card to pay for metro services, buses, trains, and parking in certain cities, the company has now issued an option of card-in-files that have partnered with the top digital brands and Biggies MasterCard and Visa payments.
Paytm Paytm Payment Bank Transit Card is currently available in Hyderabad and will soon be launched throughout the country as part of the plan “one country, one card” which equips its owner to cover all their daily needs.
Transit card and tokenization – what do they offer?
The company said in a statement that Paytm bank users no longer need to bring several cards in their wallet because the transit card also allows ATM withdrawal. The card, launched in partnership with Hyderabad Metro Rail, can be obtained through a simple application sent digitally with online charging options. The card is sent at the door of the user or they can buy it at the designated sales point.
In other initiatives, the company also announces the tokenization feature that will allow users to avoid entering credit card details or debits every time they make online transactions. At present, this feature is available for purchases in MyNtra, Dominos Pizza and Oyo Rooms, among others.
Paytm CEO Praveen Sharma payment services believe that with this initiative from the company, trader partners will be able to offer smooth and safe payments to users. The company is bound by MasterCard, Visa and Rupay to offer their payment gateways to the platform and e-commerce trader.
With partnerships, cards on file tokenization services will be available for all consumers and paytm traders, the company said. It is synchronized by the Bank of India’s reserve guidelines (RBI) which says that the “Saved Cards” feature will not be allowed on the merchant network again, a press statement said.
Paytm said that “tokenized card transactions are considered safer because the actual card details of users are not shared with traders. Instead, tocenization makes card details stored as a unique and irreversible ‘digital token’, not a 16 digit number,” he added.
