Exclusive: Naspers, the South African company that also co-owns Ibibo with Tencent, has quietly rolled out its payment gateway product called PayU in the Indian market, to allow websites to integrate e-commerce transactions through online payments. Although, in the South African market, PayU apart from being a merchant payment gateway, is also an online wallet (just like PayPal), open to individual users for making online transactions, in India it seems, it’s only being offered as a payment gateway product. PayU also has presence in markets like Poland and Czeh republic.
As expected, the gateway has first been deployed on Ibibo and its e-commerce sites tradus.in and goibibo.
The service claims to offer:
- Number of Payment options: According to its website, PayU accepts Visa and Mastercard credit cards and debit cards(for more than 50 banks), and Net Banking for 9 banks including ICICI, HDFC, SBI, Axis Bank and others.
- API Integration: It claims to have developed payment APIs with all major shopping carts and APIs to help automatically capture, refund and cancel transactions without manual intervention.
- Transaction Analytics: It also offers payment analytics for successful and failed transactions and claims to focus on recapturing abandoned transactions.
- Less time to set-up: It also claims to make setup time less by making Mastercard transactions live at the same time with Visa.
- Cheaper Plans: PayU offers three plans starting with a setup fee of Rs 6,000 with a 4.90% transaction rate, going up to 2.90% rate with Rs 24,000 as the set-up cost, although it also charges Rs 2,400 as annual maintenance charges under each plan. It’s also offering custom plans for users of other payment gateways.
The e-payment space in India has independent companies such as EBS, CC Avenue and BillDesk but the lion’s share of the space is held by large private banks like HDFC, Citibank and ICICI. As we said earlier, a number of problems in executing orders are related to payment gateways going rogue: there isn’t a quality plug-and-play alternative yet, and it’s difficult for startups to set-up payment gateways in a swift and economically viable manner, and e-commerce businesses in India often complain about the lack of reliability of payment gateways.
The online payment gateway situation in India is ripe for disruption –we’ve hardly ever come across an e-commerce company that is happy with its payment gateway partner, and there are few plug-and-play payment gateway solutions available.
The launch comes at a time when European payments provider Ogone is all set to enter India, with the acquisition of the Indian payment gateway EBS. There have also been talks about Reliance Industries setting up a payment gateway with American Express.
There is always scope for good payment gateway products, however, at the end of the day it also depends on how PayU is able to fulfill its promise of recapturing failed transactions, because they are the biggest deterrent along with connectivity issues, to the e-commerce industry.
Also read: What If RIL Does Create A Payment Gateway?