It looks like Snapdeal has gone live with its payment gateway solution Klickpay, allowing users to make payments for their online purchases on Klickpay merchant websites. The solution is currently live on Snapdeal wherein consumers can use this option for their purchases.
This follows a report from last month which had suggested that Snapdeal was planning to launch a payment gateway in a bid to reduce the usage of cash on delivery model by consumers for online payments.
The service seems to be currently targeting those who are wary of sharing their credit card details for online transactions, by positioning itself as a platform which facilitates online payments without disclosing the user’s credit or debit card details to the merchant. It claims to encrypt sensitive information like credit card numbers, expiry month and year before sending it over to merchants.
Users can sign up for a Klickpay account using their Facebook credentials or by providing details like name, email address and mobile number, and then save details like their address, credit or debit card numbers. This allows quick payment Following this, users can sign in using their Klickpay account on merchant sites and complete the purchase by entering their CVV number and the 3D secure password. Last month, Flipkart’s Payzippy had also introduced its consumer facing product, allowing users similar functionality.
KlickPay Score: For merchants, it offers features like checkout widgets, payer network, fraud detection and others. But what’s particularly interesting is a Klickpay priority score for each customer, generated from their online transaction history, COD (Cash on delivery) returns, social network influence and others to help merchants separate genuine orders from fake ones and prioritize their shipments. This score is also visible to consumers on their respective profile pages.
Developer accounts opening shortly: Klickpay also notes that it will open developer account registrations shortly. According to the company website, it will support OAuth 2.0 protocol to enable developers offer KlickPay user registrations through a popup. It will also provide two types of checkout integration – a popup form and an iFrame-based embedded form.
In the same month, digital payments solutions provider Citrus Pay had also raised $5.5 million in Series B funding from the Japanese online payments service provider econtext Asia and Netprice.com’s wholly owned subsidiary Beenos Asia with participation from existing investor Sequoia Capital.
Others in this segment include CCAvenue*, Paytm payments, PayU, Zaakpay, Billdesk, Times of Money and EBS. eBay which had started cross promoting their products with Snapdeal following their investment in Snapdeal last year also has a payment solution in PayPal, which initially faced a lot of restrictions from RBI but the restrictions are now slowly being relaxed.
Competition in the payment gateway space is good – it will bring in product improvement and innovation, allowing checkouts with lower friction, and better management of typically failure-ridden functioning bank gateways. It still is early days for the likes of KlickPay and PayZippy: the former has just launched, and the latter still has a tiny customer base (MakeMyTrip, Travelyaari, Zansaar, Trendin, JustEat, Lenskart among them). It’ll be interesting to see if more merchants make a switch from well entrenched players like CC Avenue, Times of Money and EBS.
*Disclosure: CCAvenue is an advertiser with Medianama