People may be queuing up and jostling in front of the banks and ATMs to get hard cash for daily sustenance after the Government demonetized Rs 500 and Rs 1,000 notes, but it’s the mobile wallet companies that are laughing all the way to the bank.
Cashing in on the money crunch, Paytm – India’s largest mobile payments and commerce platform – had updated its app to launch India’s first app point of sale (POS) terminal allowing all small and medium merchants to accept all card payments including Rupay, Visa, MasterCard and Maestro.
However, the app POS was discontinued just a day after it was launched.
“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. We will re-launch this product 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,” said Paytm on its website.
“In this payment flow, we do not store any card details in our App or in our servers. The transaction is completed on the bank’s page and follows the two factor authentication guidelines mandated in India. Paytm is a PCI DSS (Payment Cards industry Data Security Standard) certified company that has it’s IT systems audited periodically by certified independent auditors,” said Paytm in a blog post.
Despite the rollback, Paytm reiterated that the launch was in line with its infrastructure-light, simple, scalable and affordable model, where anyone with a mobile phone should be able to accept payments.
Big Payday For Paytm
The company aims to empower over 15 million merchants across the country by enabling them to accept debit and credit card payments at zero setup fee and zero introductory transaction processing cost.
Backed by a strong ecosystem of customers and merchants, the company is currently registering over an average of 5 million transactions worth with an annualised GMV of Rs. 30,000cr. Over 15,00,000 offline and online merchants across India accept Paytm as their preferred payment mode.
A recent study by industry chamber Assocham and research firm RNCOS said the transaction volume of mobile payments in India is likely to witness an exponential compounded annual growth rate (CAGR) of over 90 per cent to reach Rs.15,300 crore by fiscal 2022 against about Rs.300 crore in fiscal 2016.
The transaction value is also likely to register more than 150 per cent compound annual growth rate and cross Rs 2,000 lakh crore by fiscal 2022 from just over Rs 8 lakh crore as of fiscal 2016, the study said.
(With inputs from IANS)