Paytm, a mobile wallet company, has decided to temporarily suspend its App POS, an app that allows small shopkeepers to accept credit card payments. According to the company, data security as well as privacy concerns played a large role in this decision.
App POS was designed to eliminate the need for physical POS (point-of-sale) terminals. With the app, shopkeepers are able to use their smartphones to facilitate transactions. After generating a bill for a sold item, the shopkeeper hands the phone over to the customer, who then enters the card details. This feature was introduced after the government decided to scrap the old Rs 500 and Rs 1000 currency notes, which forced consumers to adopt digital payments.
However, several concerns were raised after the app’s launch, which caused Paytm to roll back the initiative. In a blog post, the company said that it will be re-launching the app soon, but first, it needs to add more certifications and features. According to Paytm, nothing is more important to its mission than customer data and privacy.
Paytm claims that no card information is stored in the app itself or on its servers.
According to Vijay Shekhar Sharma, founder and CEO of Paytm, the company follows the Payment Cards Industry Data Security Standard. He emphasised this at the time of the launch in order to allay privacy concerns.
Paytm had expected 10 million App POS downloads before the weekend and 15 million App POS merchants before the end of the month.