Paytm puts its APP POS on hold, due to concerns rising over MasterCard and Maestro

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. Now it is said that Paytm has pulled back its in-app point of sale feature.

But concerns were raised by Visa and MasterCard, who said it could lead to data breach of user details.

Paytm posted in its blog, "Post our launch, we have had several discussions with stakeholders on how we can make this process even more secure. Based on some suggestions from the industry, we have decided to add additional certifications and features before making it available to merchants."

Paytm has been the most aggressive in capitalising on the government's push towards digital payments, even lauding Prime Minister Narendra Modi in full-page newspaper advertisements.

In its zeal to expand to small vendors, Paytm overlooked privacy and data security concerns of customers, as they could potentially have saved screenshot of customer card details.

So for now Paytm has put its in-app POS on hold, up until, it gets updated soon.

"Nothing is more important to us than customer data and privacy. We will always put this above all without fail,” Paytm said in the blog. We will re-launch as soon as we have updated the product. We are working closely with everyone in the cards ecosystem with the commitment to expand digital payment acceptance in the country."