Paytm recently announced it new feature POS which enables small merchants to collect payments through a credit/debit card on their smartphones. There has been an acute shortage of cash flow since the demonetisation of ₹500 and ₹1000 banknotes policy enacted by the Government, which caused a serious trouble to small merchants.
Paytm played a masterstroke by announcing its new feature for merchants to receive payments through Paytm app in their smartphones by entering their credit/debit card details. This new feature helped shopkeeper to eliminate the need for a physical point of sale (POS) terminal or a card swipe machine.
This move was raised concerns of senior executives in payment companies and network majors like Visa and Mastercard. They suspected that there could be a misuse of consumer’s card data.
Due to this, Paytm was forced to rollback the POS feature from its app a couple of days ago. And it made the following announcement on their website.
“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.”
Paytm also further stated that
“Nothing is more important to us than customer data and privacy. We will always put this above all without fail.”
[Source : Indianexpress]
Relaunch of POS feature
After addressing its security concerns, Paytm has now resumed its Point Of Sale(POS).Paytm’s Founder and Chief Executive Vijay Shekhar Sharma hinted he will not join an interest rate war with its payments bank offering, which is likely to be launched next month. [as cited in Economic Times / India Times]