On Wednesday Paytm announced the launch of an app POS system under which any merchant using Paytm would be able to accept payments using credit or debit cards, without the need for a physical card reader. This is a huge cost saving feature that would enable small vendors to accept cards. However, many people raised security concerns with the implementation, and now, just a day after the launch, Paytm has stated on its blog that it is delaying making the feature available to merchants.
In the blog, Paytm stated that it has held several discussions with stakeholders on how to make the process more secure, and that it will be adding more features and certifications to improve security before enabling it for merchants. According to Paytm, it will relaunch the product as soon as it has been updated, and that it is "working closely with everyone in the cards ecosystem with the commitment to expand digital payment acceptance in the country."
The company added that "Nothing is more important to us than customer data and privacy. We will always put this above all without fail."
The current implementation already includes two-factor authentication and Paytm is a PCI DSS certified company - Paytm assured users in the blog post that it does not store any card details, in either the Paytm app or on its servers; however it did not specify what additional security features it will be implementing.
Disclosure: Paytm's parent company One97 is an investor in NDTV's Gadgets 360.