Paytm has rolled back its app-based PoS (Point of Sale) service on Thursday temporarily citing security reasons.
“Post our launch, we have had several discussions with stakeholders on how we can make this process even more secure”, Paytm said in a blog post.
“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,” the e-commerce firm added.
The PoS service allows a merchant to accept debit card/ credit card payments over a mobile phone app without the need of a card swiping machine.
Media reports said that security concerns raised by Master card and bank authorities made Paytm to roll back the service.
Soon after the Chinese firm Alibaba- backed company announced its ‘India’s first app PoS’ service, questions were raised about the possibility of misusing user’s card details and usage of data by third-party firms.
Paytm has been one of the biggest beneficiaries after the central government announced demonetisation plan on November 8.
On November 9 and 10, eyebrows were raised when Paytm put out front-page advertisements in newspapers, congratulating Prime Minister Narendra Modi on “taking the boldest decision in the financial history of independent India”.
An earlier report by Newsd has said that Reserve Bank of India asked Paytm to revise its final application for payments bank, a big leap towards a cashless economy.
