SnapDeal launches own payment gateway
Online marketplace SnapDeal is going to be the second in line to launch its own payment gateway, reported The Economic Times.
The first online marketplace to launch its own payment gateway was Flipkart. Back in July this year, Flipkart launched its online payment gateway called PayZippy.
SnapDeal's payment gateway will not only have to compete with Flipkart's PayZippy but it will also be competing with older players in the online payment gateway space like CCAvenue, PayTM, PayU, BillDesk, ZaakPay etc.
SnapDeal's payment gateway seeks to promote online payments via credit cards over Cash on Delivery (CoD) amongst Indians.
As reported earlier by India Digital Review, 60 per cent of e-commerce transactions happen via CoD. However this is not a very profitable option for a merchant as the average cost per CoD transaction is 8 to 10 per cent.
Kunal Bahl, co-founder and CEO, SnapDeal, said, "In our business, the core marketplace is the king, the logistics platform the queen, while the payments platform is the jack. We need to get this entire stack in place."
SnapDeal's payment gateway will not only store credit card details, billing and shipping information of a customer, but will also offer analytics to consumers, pertaining to their choices. The stored information will fasten the checkot process with consumers not requiring to enter their details everytime they do a transaction with SnapDeal.
SnapDeal, with about 20,000 sellers and offering products across 500 categories may also license its yet to be named payment gateway to other e-commerce firms.