This just in: EBS (E-Billing Solutions) has inked a binding agreement, under which it will be acquired by European payment gateway major Ogone Payment Services. This is Ogone’s first foray outside of the European market, and its entry into India by acquiring EBS had been reported in July, quoting sources. This makes it official, and three members of the Ogone Payment Services Board will join EBS’ board. As per the announcement, EBS will continue to operate under its current management structure, will be responsible for running the operations and the continued expansion of the company.
EBS claims to be the second largest payment gateway service provider in the country, with over 3000 merchants and 400 resellers. It has offices in Chennai, Mumbai, Hyderabad, Bangalore, Delhi, Kolkata and Thiruvananthapuram. It claims to have more than 56+ payment options and, rather surprisingly, an “uptime of 99.999% and less than 0.001% of online fraud”. It services clients like Flipkart, Snapdeal, Myntra, Ferns & Petals, Puma, eBuy, Limata, Printo, among others.
Ogone claims to have than 30,000 customers in 45 countries, with offices in Belgium, the Netherlands, France, Germany, Switzerland, Austria and the United Kingdom.
Looking beyond the fact that this is an acquisition, we hope this leads to fresh investments in the payment gateway space in India, because managing online transactions and payments remains a challenge for the merchants. We’ve heard complaints of some payment gateways being too bureaucratic and unreliable, and there still isn’t a quality plug-and-play alternative for payments yet: it’s difficult for startups to set-up payment gateways in a swift and economically viable manner. We’ve been thinking of retailing reports, but there still isn’t an Indian alternative to PayPal. This is probably why Indian payment gateways have a limited merchant base.
Also read: What If RIL Does Create A Payment Gateway?