Paytm suspended app POS feature on customer data and privacy concern

Paytm, which is a popular mobile wallet company has recently faced some problem regarding customer data and privacy.

Paytm, which is a popular mobile wallet company has recently faced some problem regarding customer data and privacy. After demonetization, Paytm had caught on in a big way with the country’s population as everyone started using this app to make and receive payments as it was convenient and accepted almost everywhere.

PoS was a feature designed to get rid of the card machine and allowed people to make and receive money through the Paytm app installed in their smart phones. However, after the launch of this feature, there were raging concerns regarding the privacy of consumer data and the customer’s card details were required to facilitate transactions.

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This feature was introduced after the demonetization as it was estimated that most people will want to go cashless and start using mobile wallets for transactions. Paytm was also expecting to receive over 15 million downloads by the end of November.

“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. Nothing is more important to us than customer data and privacy. We will always put this above all without fail.” -Paytm claimed in a blog

According to information from NPCI (the National Payments Corporation of India), over 600 customers from 19 banks have been deceived of more than a crore by using only stolen debit card data.

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However, Paytm claimed that it doesn’t store any card details in the app. At the time of the launch, the Paytm founder, Vijay Shekhar Sharma, had also said that the company is a PCI DSS (Payment Cards Industry Data Security Standard) certified company.

However, they’ve scrapped the feature now for consumer data security.



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