October 24, 2013
I do a lot of shopping online. I am a fan of Flipkart and couple of other sites. But recently Economic Times noted that customer complaints about Ecommerce sites are growing in India. The buyer complaints are growing. So what will happen next? Leading E Commerce companies will go ahead and do everything possible to tackle these issues (would have been already). Some payment gateways who support them will just do the talking, while some of them will be really coming up with improved security mechanisms and low transaction processing times during shopping.
PayZippy, is a new payment gateway brought to you by the house of Flipkart. Flipkart has always acknowledged that online businesses need to do better in India. In a recent Conference Flipkart said that the eco system of banks, payment networks, Ecommerce players is failing, when it comes to payments because 25% or more transactions fail. Its not a good scenario and there is a need to stop that.
Probably that gap, and that issue that exists in the market gave rise to Payzippy. PayZippy was launched by the Flipkart Payment Gateway Services Pvt. Ltd on July, 2013. According to Flipkart, they had started working on this solution 2 years ago. PayZippy was mainly launched to address the payment failure, fraud and checkout issues of customers and (ofcourse) to add to the bottom line of Flipkart as a group. PayZippy also plans to offer a digital wallet service at the end of this year. They had applied for the prepaid license with RBI but have not received approval so far (PayTM, One97 was the latest one to get it on 07.08.2013)
PayZippy says that a user would be able to save card details in PayZippy account. The saved card details could then be used for transactions on merchant websites just like what a ‘Autofill’ feature does. Such feature would cut down the transaction time and errors. As of November, 2012 Flipkart had acquired PCI DSS certification which enables them to store customers’ card details.
PayZippy also says it will enable domestic merchants to accept payments on their websites or mobile sites via multiple payment methods like Credit Cards, Debit Cards, Net Banking, EMI and Prepaid Wallet. PayZippy aims to partner with around 2000 merchants by the March of 2014. PayZippy has recently come up with a real-time tracking of the bank gateways similar to the one launched by CCAvenue on February, 2013. This could help in dynamically switching the transaction to the gateway that will successfully process the transaction.
Some of the existing players in the online payment gateway space in India include CCAvenue, PayTM, PayU, BillDesk, ZaakPay, Times of Money's Direct Pay and even banking institutions for high volumes such ase ICICI, HDFC, Citi Bank etc. However unlike many of these competitors, PayZippy claims to offer flat, stable and transparent transaction fees. PayZippy’s detailed pricing structure can be seen here from their site.
LTP View: Payment Gateways need to do a lot of work in India. Even Flipkart acknowledges it. There are huge issues with respect to transaction failures, user experience and other things. If PayZippy can solve these problems, it will be a welcome move. Flipkart in many ways is building up its business in a very similar fashion to that of Amazon (where its founder worked earlier). Amazon had the payment gateway of its own for the longest time and It also started providing one-click payments. Recently it also started providing 'Pay with Amazon' to other online merchants.
Note: Lets Talk Payments is launching the largest and most comprehensive survey of payment gateway providers as rated by startups. Very objective assessment based on people who integrate payment gateways in their site to sell their services. If you want to participate, and you are a startup based out of India, please write to us here