ET BureauBENGALURU: 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 relaunched the feature in a new format that will enable merchants to send a payments link to the customer via text message, the company said on Thursday.
Paytm had faced criticism for its original POS app that had required merchants to take customers’ card details on their own phones, thus posing a security concern.
Payment card companies including MasterCard and Visa had raised concerns with the Alibaba-backed Paytm, which withdrew the feature within 24 hours of its launch last week.
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.
The relaunched the feature in a new format that will enable merchants to send a payments link to the customer via text message, the company said on Thursday.
Paytm had faced criticism for its original POS app that had required merchants to take customers’ card details on their own phones, thus posing a security concern.
Payment card companies including MasterCard and Visa had raised concerns with the Alibaba-backed Paytm, which withdrew the feature within 24 hours of its launch last week.
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.
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