Paytm Suspends Its PoS App
The mobile virtual wallet application Paytm, recently released a feature on its app called PoS (point of sale) that allowed merchants to accept debit and credit card payments, whether they had a machine or not. However, just a day after having launched the service, the company temporarily withdrew it saying that there were concerns for the privacy and data of customers.
Paytm had a target set for 15 million merchants to be added to use the service by the end of November. Unfortunately everything did not go as planned for the company. According to the online payment company, they have held numerous discussions with their stakeholders, about how the process can be made safer.
After taking into account the suggestions from industry experts, Paytm has decided that they will add several more features and certifications before it is made publicly available to merchants again. The company is expected to re-launch the product as soon the update is carried through with.
Paytm founder and CEO Vijay Shekhar Sharma said that “You should be able to trust it exactly as much you are trusting a POS machine.” He also added that the service was not only acknowledged but also confirmed by the RBI. According to Sharma, the PoS system was certified by the Payment Cards Industry Data Security Standard (PCI DDS).
The PoS system was following the RBI’s guidelines for two-factor authentication. Additionally the PCI DDS certification meant that the company’s IT systems were periodically audited by independent auditors who are also certified.
Experts from the industry have said, that due to the sudden and massive amount of traffic that was been seen across digital payment platforms and online wallet banks and companies, it is possible that several firms may have tended to lose sight of their security features. This is also probably because they have all been competing with each other to grow their servers and systems so that the expanding traffic can be accommodating.
Several mobile wallet companies even saw an increase in their server traffic up to 20 times, since the announcement from PM Modi that old currency notes have been withdrawn.
The PoS feature was launched just a few days before its release, making the security issues almost expected. The feature is sure to come back stronger than ever and help in promoting the dream of a cashless society.
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Picture courtesy – indianexpress.com, fonearena.com
by techtalks @TechTalks January 11, 2017 7:31 AM UTC