Paytm launches P2P payment system in place of APP PoS

Paytm, digital wallet platform had recently launched India's first APP PoS allowing all small and medium merchants to accept all card payments including Rupay, Visa, MasterCard and Maestro.

But due to some concerns raised by Visa and MasterCard, which could have lead to data breach of user details, Paytm had to pull back its in-app point of sale feature.

Now Paytm has launched peer to peer payment system for merchants, a week after the digital payments company withdrew its point-of-sale (PoS) app feature over security issues raised by the industry.

The company said, "The relaunched the feature in a new format that will enable merchants to send a payments link to the customer via text message."

Under the updated feature, merchants can choose the "Accept Payment" option on the Paytm app and enter the customer’s mobile number and amount details.

This will trigger a secure link sent by SMS to the customers so they can enter their credit or debit card details on their own mobile phone.

Customers will also have to enter a one-time password or passcode sent by their bank and complete the two-factor authentication as mandated by RBI.

Paytm's competitors such as PayU India and Razorpay have also recently launched similar payment features that send a payment link to customers' phones.

While announcing the relaunch on Thursday, Paytm said its POS app will soon also enable UPI inter-operable payments.