PayU India’s online payment solution PayUPaisa has launched an automated all-in-one-payment solution targeting e-commerce marketplaces and aggregators that operate in different segments like travel, real estate and collect fees or payments. Presently, furniture e-retailer Urban Ladder is using this service.
How does it work? The company says that when a buyer purchases products from different sellers operating in a marketplace, a single order ID is supposedly generated for the buyer. PayUPaisa’s new service will apparently collect the payment for the marketplace using this single order ID level and makes settlements to the marketplace along with its commission and to the different sellers based on sub order IDs of each seller.
The settlement is supposed to be made with T+2 days as prescribed by the RBI where T could be the date of transaction, shipment date of order, delivery of order or any other date set by the marketplace.
This solution will apparently process payments and settlements for various modes payment like credit card, debit card, net banking, cash on delivery, gift vouchers, discount coupons and wallets. However, it is not clear how the solution is supposed to work for cash on delivery transactions. The pricing of this service is also not clear.
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.
Other developments in this sector
In July 2013, 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.
In June 2013, 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.
TLabs incubated VA Tech Ventures Pvt Ltd. had also launched its operator agnostic prepaid mobile wallet, Happay that syncs with mobile number and SIM card to allow P2P and B2C transactions.
In February 2013, CCAvenue had also 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).
