When a retailer goes online, the first thing he/she worries about is the transaction of the payments. As making and receiving payments is not exactly in real time like in offline scenario, the need to make these transactions safe and secure becomes the prime need for an ecommerce venture. Here comes the role of the payments gateways.
With the growth of ecommerce, the retailers in India have recognized the value of Online Payments. Even, the retailers have started encouraging their customers to pay a small amount online for Cash on Delivery transactions as commitment fee to reduce denial of order at the doorstep, thereby impacting business positively. Thus, it becomes even more important that the Payment Gateway selected by Merchant must be efficient, responsive and technically advanced.
Since past one year the payment gateway technology has seen many innovations along with the entry of new players with advance Payment Architecture. However, as per Vivek Sagar, MD, EMVANTAGE Payments Pvt Ltd, the over 30% transaction drop is impacting the online industry adversely and almost all the players claim to have got the solution.
“As per the large merchants, the drop %age has not still reduced. One critical reason is that the Payment Gateways are not tuned to the Seasonal Impulse.This coupled with poor architecture and poor network impact the transactions adversely. Some new players have tried to handle the problem through advance architecture. Only time will tell if this solves the problem”, he added.
Thus, while selecting any one of these, one must keep in mind two important criteria’s viz. Innovation and Efficiency. Other factors such as response of the Payment Gateway during and after the integration, readiness to integrate with leading shopping carts with ease, etc. also forms a critical support factor the upcoming retail merchants must look for.
Here is a brief comparison of some most widely used payment gateways by the ecommerce merchants in India.
* The payment gateways are featured here only on the seller perspective and not the buyer
** The article is purely for informative purpose and does not state any kind of rankings for the portals included
*** Payment gateways are listed in alphabetical order of their names and the order in the list does not implies the performance or ranking of these gateways
1) Atom: A Financial Technologies Group Enterprise, Atom technologies offer 360o payment facilities over Internet through Atom Paynetz, IVR, Mobile Applications, Atom wallet Service and POS, with over 100 payment options. Currently, the payment gateway processes 15 million + transactions and is having 4500+ strong merchant tie ups across various sectors spanning across Government , Utility, BFSI, DTH, Education, Entertainment and many more. Also, the platform offers Third Party Viewer(TPV) Support for maximum banks along with the more than 3 prepaid card options.
2) CCAvenue: CCAvenue, founded in 2001, is one of the largest Payment Gateway in India today and currently powers more than 85% of the e-commerce merchants in the country. It offers a wide range of services along with many innovative features such as phone pay, real-time live monitoring tool and SNIP which allows collection of payments across social media.
Recently, it became the first and only payment gateway to go Live with DBS Bank’s Net Banking option. Also, it offers a new Retry option for online shoppers, giving them up to three attempts to complete their purchases successfully, in turn enhancing the merchant’s transaction success rate.
3) Citrus: Backed by Sequoia Capital, this payment gateway offers some really unique features such as Single click checkout, In-App purchases, etc. at a zero setup cost and quite low TDR charges. Once a merchant sign up with Citrus, he can access their branded payment pages across all devices, thus offering a wide range of payment options. Also, it provides a feature wherein even when a transaction fails, the customer finds himself on the payments page only instead of basic information filling page.
Till date, Citrus Pay has acquired over 550 merchants over the past 13 months and records up to 11,000 transactions per day. Also, it has recently raised USD 2 Mn from Sequoia Capital
4) DirecPay: A TimesofMoney Service, DirecPay apart from offering a wide range of affordable payment options, also gives an assurance of T+2 settlement cycle. It also offers option of Multi Bank EMI, wherein all major banks like HDFC, Citibank are supported for EMI conversion. the other unique features include dropped transaction tracking, automated reconciliation, real time MIS and on demand analysis & reporting tools.
5) EBS: One of the the most secured online payment service provider, EBS deploys its own fraud management solution . It offers international payments & multi-currency services though Ogone, one of Europe’s biggest payment provider and e-Wallet service through Paypal. Part of Ingenico, the leading global player in payment terminals, the platform processes over 130 Mn transactions globally.
EBS is the only player in India with an extensive local network spread across 8 cities including Mumbai, Hyderabad, Chennai, Delhi, Bangalore, Ahmedabad, Jaipur & Thiruvananthapuram. In comparison to other portals we find it a bit costlier, however it provides custom packages based on the volumes committed, along with the sector specific pricing for Insurance, Education and companies dealing in B2B businesses.
6) EMVANTAGE: It enables online merchants to sell through multiple channels including Social Media and has developed models to increase revenue for Online Merchants. Along with wide range of payment options. EMVANTAGE also provides analysis and reporting tools like Transaction alerts, Failure analysis, etc.
Facebook Buy button, iFrame payment box, Chargeback support, Payment remittance tracking, Auto Capture option, Void and reversal option are other features available on the portal. EMVANTAGE is commercially competitive and its packages are available on the basis of Volume of transactions and also offers custom pricing plans for volume higher than INR 50 Lakhs.
EMVANTAGE is also a payment gateway PaaS service provider and is fully equipped to power multiple different payment gateways on its platform as white label offerings
7) PayPal: In India, Paypal is being used widely for cross border transactions due to its simple and transparent pricing and easy currency conversion facility. It provides basically three selling options – Web, Invoice or Mobile. It accepts only Paypal and some major credit cards such as Mastercard, Visa and Discover.
Recently, Paypal also extended its Seller Protection policy to Asia pacific, to protect merchants from fraudulent transactions and cases where items are not received by buyers. It also offers the option to sell on world’s biggest marketplace ebay.
##As Paypal is an international service, its difficult to compare its pricing options with those of Indian origin. To know more, Please refer to its site here
8) PayU : With a high conversion rate of 12%, multiple payment options and 24×7 customer service, PayU claims to Go Live fastest at a much affordable pricing. The site offers features such as 1 Click checkout, iFrame solution for secure collection of card data, Payment analytics, IVR payments and Email Invoicing. The company is a part of PayU India, backed by parent company Naspers Group, valued as a $25 billion media and internet company. The clients include major brands like Jabong, Snapdeal, Tradus, Bookmyshow and many more.
PayU India also operate another payment gateway, PayU Paisa which provides features like a free webstore, free webfront and email invoicing. Sellers who already own a website can too integrate with PayU Paisa at zero setup cost. The platform offers a strong dispute resolution mechanism and is used widely by schools, housing societies, art enthusiasts, SME’s and many more.
9) PayZippy: Built by the technology team of online marketplace Flipkart, the payment gateway work for card payments on both web and mobile. The pricing is almost same when compared to others, however, the way of charging it, is slight different. There are no sign up or annual maintenance fees. For International cards, it charges an additional fee of 1.5% over and above the domestic credit card pricing.
The merchants are charged on the basis of their credit card transaction value. Also, there are no package scheme available like other sites. For instance, the monthly credit card transaction value upto 5 Lakhs, is charged with 3.50%, between 5 – 10 lakhs 3.25%, etc. For transactions above INR 1 crore, the merchants can ask for custom quote from the company.
10) Zaakpay: The portal aims at simplifying payments in India. It offers both mobile (Mpay) and web (Webpay) based payment gateway services. Mpay provides In – app payments facility for Android and iPhone applications and requires no additional fee. Also, it charges a fixed one time setup fee and Annual maintenance charges. However, TDR is dependent on Monthly payment volume. For e.g. TDR is 3% for payment volume between INR 0-5 lakhs, 2.5% for INR 5-50 Lakhs, etc. Its clients include portals such as Mobikwik, Ziptrips.in, Oravel.com, American Swan, Giftery and many more.
Apart from these, Merchants also have an option to choose from payment service providers such as BillDesk, TechProcess, PayTM and DialDesk. Also, some banks like HDFC and ICICI have been providing their own payment gateways to the merchants, however, as these gateways can provide access to either a very few or no other banks, the payment options for the merchant get limited at the end of the day.
**** Although, both the Atom and PayZippy portals are good but have given relatively very less information on their website. We tried to connect over a call as well as through mails. The response is still awaited.