Paytm rolls back its app-based PoS feature, a day after its launch. Here’s why

A day after Paytm launched an app-based Point of Sale (PoS) feature on its platform, which allowed shopkeepers to accept the payment via debit and credit card, it discontinued the service, citing security issues.

The new feature was supposed to eliminate the need for a PoS terminal or a card swipe machine.

"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,” said Paytm on its website.

Paytm also said the launch was in line with its infrastructure-light, simple, scalable and affordable model, where anyone with a mobile phone should be able to accept payments.

"In this payment flow, we do not store any card details in our App or in our servers. The transaction is completed on the bank's page and follows the two 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,” said Paytm in a blog post.

However, it seems that Paytm definetly overlooked some problems and it may have risen to flaws.

Ever since Prime Minister announced the demonetization of Rs 500 and Rs 1000, Paytm has been moving at a breakneck speed to capture and disrupt a large part of the market with its e-wallet.
(image: IndiaTimes)