Just a day after launching their app-based PoS for merchants, Paytm on its official blog declared rolling back of the same feature.
Launching this new feature on Wednesday, the payments company wanted to allow small merchants to accept all debit and credit cards without the need of a card machine. Addressing the problem of low penetration of PoS infrastructure in the country, the launch was in line for merchants with a mobile phone to be able to accept payments.
The reasons given for the rollback highlighted security as one of the concerns followed by the need to add certain certifications and features before rolling it to the industry.
This is true considering it was reported that network majors Visa and Mastercard had raised concerns over Paytm’s launch of their PoS feature. Further, certain banks have also raised concerns with the Reserve Bank of India on the matter. The concerns have been raised around the misuse of consumer’s card data or stealing of data by merchants through various screen reader applications.
Targeting in line to increase its acquiring customer base, during the launch Paytm’s executives claimed the solution to be PCI DSS (Payment Cards industry Data Security Standard) compliant, an industry security standard for card companies in the country.
The blog spot stated:
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.
Nothing is more important to us than customer data and privacy. We will always put this above all without fail.
However, this roll-back seems to be an indicator for Paytm to gear down a bit. But in the statement, the company is sure about relaunching the solution.
This move from Paytm hits mPoS players like Ezetap, mSwipe, and Pine Labs among others who are equally trying to aggressively capture the market through hardware-based mPoS solutions.
It is no secret that Paytm has been one of the biggest beneficiaries from the demonetisation move announced by the government.
Just on Monday, the company announced registering over seven million transactions worth Rs 120 crore on a daily basis. Further, the company claimed to have added 1,50,000 merchants to its platform, having an active network of 10 lakh (one million) offline merchants across India.