Paytm rolls back card swipe feature, just a day after launch

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 A day after launch of  in-app PoS (point of sale) feature, Paytm rolled back the service as customer data privacy and security issues were raised by payment network majors MasterCard and Visa. Paytm’s in-app PoS was intended to let merchants accept payments from consumers by putting in their card details onto the vendor’s smartphone. Senior executives at payments companies said they’d raised a red flag and said possible misuse of users’ card details emerged as a glaring problem with the new service.

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Paytm announced on Wednesday that it has updated its app to launch what it claimed was “India’s first app PoS”, allowing all small and medium sized merchants to accept debit and credit card payments.

Questions were also raised about data being used to make international payments and information being sold to various third-party firms. The digital payments firm has been one of the biggest beneficiaries after the Indian government demonetized high-value currency notes two weeks ago.

People aware of the development said MasterCard asked the Vijay Shekhar Sharma-led firm to withdraw the service. “MasterCard and other network players have raised concerns on the solution launched by Paytm from several perspectives including safety and security . According to a senior executive at Visa, Paytm did not carry out necessary certifications so that users can safely pay to merchants without any breach of data privacy.