Indian online marketplace Paytm Mall is delisting 85,000 sellers as part of an effort to improve the customer experience on its site, according to a company blog post.

The move is a result of revising its onboarding process to better catch fraudulent sellers, the post said. The delisted merchants did not meet the new standards.

In a Facebook post commenting on the news, Paytm founder and CEO Vijay Shekhar Sharma said, “From an open marketplace for any seller to now, only reputed and brand-authorised sellers. No more bad shopping experience due to a few sellers.”

Paytm’s revised onboarding process imposes new requirements on sellers, including mandatory security audits, the company said.

According to Deana Rich, the move demonstrates the need for marketplaces – new ones in particular – to make sure strong onboarding and risk management processes are carefully set up from the beginning. Rich is president of Rich Consulting and co-founder of

Fraudulent sellers particularly gravitate toward new marketplaces looking for weaknesses that might result from a lack of knowledge about the payments requirements, she said.

“Often the founders of new marketplaces are not thinking about how people will take advantage of them,” she said. “They are thinking about their cool new product that solves a problem in the marketplace.”

The level of scrutiny a marketplace applies to new sellers should reflect the risk they present through such factors as the processing amount they’re requesting and the product type, among others, she said.

“Knowing local laws, as well as card brand regulations, will help you set up a tiered underwriting structure to allow the onboarding of legitimate sellers seamlessly,” Rich said.

The takeaway? “Understand payments before you go live,” Rich said.