Before this, it offered payment collection service for digital goods and services only, although it allowed users to give away physical goods for free. While there were workarounds for the payment of these physical goods, it wasn’t really convenient for users and the company was also essentially out of the transaction.
With this move, sellers can now create storefronts of their physical goods and sell products to their customers. In a sense, this is somewhat similar to PayUMoney’s (PayUPaisa then) storefront feature, although the difference is that Instamojo doesn’t own the payment gateway.
On the flip side however, merchants will be able to setup their storefront faster and also offer a quicker & better payment checkout experience to consumers. Instamojo co-founder Sampad Swain mentions that they also have shipping and logistics partners to help out with the delivery of physical goods.
Recent Instamojo Developments
– In February this year, Instamojo had introduced Social Pay feature, allowing consumers to purchase products for free by either sending a tweet or posting an update on their Facebook profile. The company claims to have registered more than 10,000 unique Social Pay transactions until now, of which 53% of transactions happened through Facebook, 46% happened through Twitter and 1% happened through LinkedIn.
– In October last year, it had introduced a feature called Instamping through which it was placing customer’s information in PDF files at the time of sale, in a bid to discourage piracy of reports and other PDF files.
– In July last year, Instamojo had reduced its transaction fees to a flat 5% for the Indian market, and 5% plus 30 cents for the rest of the world and had opened up its APIs, allowing developers to create new offers, edit existing offers, query their offers, and archive offers.
The company has raised close to $500,000 investment overall from 500 Startups, Blume Ventures and angel investors like Rajan Anandan, Sunil Kalra, Rob de Heus, Thijs Gitmans and Shailesh Rao among others.