PayU India’s PayUPaisa which allows businesses to set up online stores and storefronts on PayUPaisa.com, has waived off its transaction discount charges (TDR) for both new and existing merchants until September 30, 2013.
PayUPaisa was previously levying a 3.2% transaction charge along with Rs 3 per transaction from merchants.The company also noted that all existing merchants have been automatically upgraded to this free plan until the specific period.
Naspers operated payment gateway PayU India had launched PayUPaisa in April 2013. Through this service, the company claims to offer free hosted web stores and free store fronts with services like email invoicing, easy website integration and free payment gateway among others.
PayUPaisa also offers online documentation process which allows sellers to fill in a merchant application form with requisite business details like business name, email, phone number, PAN Card details, bank account details and submit for approval. PayU India claims to review each application within 48 hours of submission. Upon approval, sellers can then publish their online stores and store fronts on the platform. The company claims to have more than 4,000 merchants merchants on board.
We believe this initiative will probably allow several merchants to try out the PayUPaisa service to sell their products more easily online, without worrying about the initial investment and the company probably hopes that these merchants will opt for its paid services once the free period is over and opt for PayU’s payment gateway solutions once these merchants need a dedicated payment gateway solution for their ventures.
Similar Developments In Online Payment Segment
Of late, we are seeing a significant amount of traction in the digital payment space. Earlier this month, e-commerce major Flipkart had launched its own online payment solution PayZippy. The company had also applied for a license to launch a a semi-closed prepaid wallet for consumers.
Last month, National Payments Corporation of India had launched an e-commerce solution called ‘RuPay PaySecure’. NPCI had partnered with an US-based online payment service provider Acculynk for this initiative.
In February 2013, CCAvenue* had launched a free package for e-commerce websites that intend to use CC Avenue as their payment gateway. Few months later, it had also introduced an in-stream payment collection service for social networking websites called Social Networks In-stream Payments (SNIP).
*Disclosure: CCAvenue is an advertiser with Medianama