A day after announcing the POS feature in the Paytm app, which enabled its affiliated merchants to accept credit and debit card payments from customers, the company has withdrawn the feature due to security concerns.
The app POS feature had been integrated to increase ease of transacting both for the customers as well as merchants, but numerous security concerns such as card details being saved in the merchant’s mobile phone and being misused later came to the fore.
The company has plans to upgrade the security features on the app POS before they re-release it to the market to fulfil its initial aim.
“Nothing is more important to us than customer data and privacy. We will always put this above all without fail,” the company stated.
Security concerns arising out of app POS
Payments through the app POS involved the customer entering his card details including card number, expiry date and CVV.
Concerns arose that a merchant can save the card details using a screen recorder app, or save the information via an application that records the entered data and 3D secure password of the customer.
“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 stated.
This move will see the company discontinue its much-acclaimed service which was aimed at making everyone’s lives easier in the Indian economy which is currently dealing the blow struck by demonetisation.
Nonetheless, it’s a welcome move by Paytm who has acted quickly on its product’s deficiencies.