Instamojo, a website which allows users to buy and sell their digital goods, has introduced Instapay, a payment method that will let users collect payments using their Instamojo usernames, reports ET Tech. According to the company, about 600 merchants are already using the service over the last week.
To use the service, users only need to share instamojo.com/@username with customers, enabling them to pay directly. Essentially, the user’s username acts as a proxy for their bank account. The payout cycle and transaction fees are the same for Instapay as for other transactions over the platform. According to Instamojo, it will take on board small and medium business segments that have trouble receiving or making payments.
Instamojo mentions that if users need to collect more information or set a price etc, then they will be required to create links, however users can adopt both approaches at the same time. As of now, users will not be able to use Instapay to carry out transactions using non-Indian/foreign bank credit and debit cards for INR priced links.
Founded in 2012 by Sampad Swain, Harshad Sharma and Akash Gehani, Instamojo allows users to collect online payments by simply creating a payment link, adding details like price, sharing the link on websites, through an email, and even on WhatsApp or through SMS, and receive payment.
– In September last year, Instamojo launched an app store that provides users with a suite of apps to simplify online selling and collection of payments. Users needed to subscribe to these apps, some of which were free and others paid, to use them. To purchase the paid apps users needed to buy credits from the Appstore.
– In July the same year, Instamojo introduced a new option for sellers to sell and collect payments for physical goods. Till then the platform supported payment collection service for digital goods and services only, although it allowed users to give away physical goods for free.
– In February, it introduced a Social Pay feature that allowed consumers to purchase products for free by either sending a tweet or posting an update on their Facebook profile. Instamojo had claimed that it had registered 10,000 unique Social Pay transactions till then (53% of transactions happened through Facebook, 46% through Twitter and 1% through LinkedIn).
– In October 2013 the company introduced a feature called Instamping, which added customer information on PDF files at the time of sale in order to discourage piracy. The same year in July, Instamojo 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.
Overall Instamojo has raised close to $500,000 investment from 500 Startups, Blume Ventures and angel investors like Rajan Anandan, Sunil Kalra, Rob de Heus, Thijs Gitmans and Shailesh Rao.