The online payments market in India is growing at a rapid pace. With a spurt of online retailers operating across various sectors such as travel, fashion & lifestyle, food, entertainment and utilities, this space is poised to grow even further and the emerging trends are bound to impact this sector.
Nitin Gupta, co-founder and CEO of PayU India, spoke to Techcircle.in about the top 5 trends which may change the market and help evolve the ecosystem for online payments.
Started in 2011, online payments company PayU India is part of the Naspers Group, a South Africa-based multinational group of media and e-commerce platforms. The company claims to have more than 1,500 merchants on board.
Here are the top 5 trends in the online payments space:
More players want to collect card details: More and more merchants are now keen to collect card details via their own platforms. And to get it done, they are either going through the PCDSS certification or using the servers of payment gateways.
Storing card details online: More and more Indian merchants have started to store card details. They either do it themselves or use white label services like PayU. Storing card details online is a new phenomenon for the Indian market since consumers are now opening up to the idea. According to Gupta, a good double digit percentage of consumers want to store card details online for future purchases. Faster refund for incomplete transaction: In a scenario where the money has been debited from the buyer but the payment gateway didn't recognise it or it didn't reach the gateway, the refund process usually takes more than a day. But in case of a netbanking transaction, this kind of refund is now getting done in just 24 hours. The 24-hour refund is a crucial factor from a consumer's point of view as a buyer wants to get the money back as soon as possible, after a failed transaction. With faster refund in place, the market can surely address this issue. International currency gateways gaining popularity: Earlier, merchants didn't accept international currency transactions because of their risky nature. But things are now changing as merchants are establishing separate 'dollar' and 'euro' gateways for global transactions. For instance, a foreign visitor whose card didn't work here earlier, would be able to use it now, with these specific payment gateways up and running.
Mobile payments are up: And finally, mobile payments are on the rise. According to Gupta, last year, mobile transactions constituted only 1 per cent of the total number of e-transactions, but this year, it has grown three times â€“ to around 3 per cent. PayU is expecting it to grow to 15 per cent in the next two years.
(Edited by Sanghamitra Mandal)