Business, Ecommerce

SBI forays into online payment aggregation business

PayWithSBIWith the rise in digital payments and the resurgence of online payment space, State Bank of India has launched its own online payment gateway service SBIePay. The idea is to facilitate eCommerce and mCommerce transactions – in addition to payments among various government services.

It will moreover provide business information and analytics to the merchants and banks as an add on feature to this service.

The move will leverage SBI’s own payment gateway and the internet banking platform of SBI to process all digital payments. The financial institution is already in the process of tying up with more than 40 banks.

The bank’s entry as a digital payments enabler is likely to eat out the business of already existing incumbent players in the space like CCAvenue, PayU and Emvantage, among others. These players are already undercutting each others business and their own transaction rates to survive in the business. With the entry of SBI in the segment – the largest banking network in the country – it is very much possible that merchants give up on their current preferred solution and go for SBIePay.

For now SBI’s main focus will be to cater government services like central, state departments and municipal corporation, states Business Standard. As these government institutions, do not have any online mode of transaction, due to which they majorly rely on authorised bank branches, collection centres and drafts – to exchange money, the report claimed.

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