Paytm rolled back card swipe feature, just a day after the launch

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A day after launching an in-application PoS (point of sale) feature, Paytm took the service back as customer data privacy and security issues were raised by payment network majors MasterCard and Visa. Paytm’s integrated-application PoS was planned to give dealers a chance to accept payments from consumers by putting in their card details onto the vendor’s smartphone. Senior officials at payments companies said that they’d raised a red flag and said possible misuse of users’ card details emerged as a glaring problem with the new service.

Paytm declared on Wednesday that it has updated its app to launch what it claimed was “India’s first app PoS”, permitting all small and medium sized vendors to accept debit and credit card payments.

Queries were also raised about data being used to make global payments and information being sold to various outsider firms. The digital payments firm, Paytm, has been one of the biggest beneficiaries after the Indian government demonetized high-value currency notes two weeks ago.

People aware of the development said MasterCard asked the Vijay Shekhar Sharma-led firm to withdraw the service. “MasterCard and other network players have raised concerns on the solution launched by Paytm from several perspectives including safety and security.” a representative from the company said in an email. According to a senior Official at Visa, Paytm did not carry out necessary certifications so that users can safely pay to merchants without any breach of data privacy.

The Alibaba-supported company said in a blog post that it will re-launch this product as soon as it has updated it. “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,” the post read.

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Sameeksha Bhardwaj, From ITvoir News Desk

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