Earlier this week, Paytm launched Mobile App POS (Point of Sale) that will allow merchants to accept debit as well as credit cards. Now, the company has pulled the plug on the service temporarily.
The mobile app POS was aimed especially at small merchants as they will not need to install swipe machines to accept debit or credit cards. Paytm has set a target of 15 million merchants using the new service by November end. However, concerns over the service’s safety has be raised by industry experts as it involves customers entering their card details on the merchant’s phone.
Paytm said in a company blog post,
Post our launch, we have had several discussions with stakeholders on how we can make this process even more secure. Based on some suggestions from the industry, we have decided to add additional certifications and features before making it available to merchants. We will re-launch this product as soon as we have updated the product. We are working closely with everyone in the cards ecosystem with the commitment to expand digital payment acceptance in the country.
The company also stated that it does not store any card details in the app or its servers. The transaction is completed on the bank’s page and follows the 2 factor authentication guidelines mandated in India. “Paytm is a PCI DSS (Payment Cards industry Data Security Standard) certified company that has it’s IT systems audited periodically by certified independent auditors”, it added.