It looks like, Flipkart’s techie founders, who earlier went on to mess around with inventory model retailing as business have now finally found their cup of cake in technology by first moving to the marketplace model, and now launching a payment gateway service.
Under a new registered company Flipkart Payment Gateway Services (FPGS) Pvt. Ltd., Flipkart team has launched its online payment solution, PayZippy (www.payzippy.com) to earn from transactions happening not just on Flipkart.
The service will be open for Indian merchants and a customer-facing product will also be launched pretty soon.
PayZippy will work for card payments on both web and mobile. It is built by technology team of Flipkart, and will follows all security standards just as any other payment gateway.
In words of the company, Payzippy has been designed keeping in mind the relevant pain points faced by merchants.
Flipkart’s high volume of transactions as a merchant must have helped their team to resolve many of the exception and errors in payment gateway services unique to Indian market through Payzippy.
Though the brand name looks like it is built on speed and convenience as a USP.
Talking about the launch, Sachin Bansal, Co-founder and CEO, Flipkart.com said “Flipkart has enabled e-commerce in India over the last six years. Throughout our journey we were always looking to build solutions that could empower the whole ecosystem and not just Flipkart. Flipkart’s Marketplace & Payzippy are the first two examples of this. This is an exciting beginning”.
The payment gateway will offer credit card saving feature for consumers to help them in transactions on multiple merchant websites with ease. This feature might also cut down transaction time and dropouts though will require stronger encryptions.
Commenting on this launch, Mekin Maheswari, Head – Payments and Digital Media said, “ The online payments ecosystem in India has been plagued by a number of problems – such as low success rates, delayed refunds and lack of transparency in the end-to-end transaction process. We at Flipkart, with our technological expertise, have worked hard over the years to address these problems & I am now proud that we are able to take these benefits to other merchants.”
To add on benefits received through use of Payzippy, Flipkart had even tried providing competitive pricing for debit cards i.e 0.75% for transaction value of INR 2000 and 1% for more than INR 2000.
For launch promotion it is offering 1% lower than the standard pricing for the credit cards for first 6 months.
Though this pricing is still higher than few options already available in the market.
PayZippy aims to partner with 2000 merchants by March 2014.
Some of the established and upcoming players in payment gateway sector includes E-billing Solutions, CCavenue, PayU, Zakpay.
Flipkart had previously used CCavenue & PayU for online payments.