Online payments solutions provider Zaakpay has launched its new product, Mpay, a mobile payment solution which went live in beta a couple of months ago. Zaakpay also offers Webpay, an online payment solution.
Delhi-based Zaak ePayment Solutions Pvt Ltd is backed by Sequoia Capital, from which it raised under $1 million early last year. At that time, Webpay had just announced that they were working on their second product called Bankpay. Bankpay was supposed to be a solution which would help one manage users' online and offline payments.
Zaakpay founder & CEO, Upasana Taku told Techcircle the company has shelved the product. "Our solution was ready but we were not able to get an approval from the authorities so we have decided to shun it," she said.
Mpay incorporates two payment solutions for the mobile medium. The first is a mobile web (browser-based) payment solution. It can work on all popular mobile browsers. Second is an In App payment solution, for which user does not need to open a browser. The transaction can happen in the app itself. This solution is available for Android and iPhone apps. "In App payments are far more successful than mobile web payments due to the simplicity of the user experience," Taku said.
Zaakpay was set up by Upasana and Bipin Preet Singh in September 2010. Prior to Zaakpay, Singh had also founded MobiKwik, an online payment recharge option for any prepaid mobile connection via SMS, IVR and mobile apps. Upasana had previously worked with HSBC and PayPal. Singh, an IIT Delhi alumnus, had earlier worked with Intel, NVIDIA, Janaagraha, Star Auto India and Freescale Semiconductor.
On Webpay, Upasana said the company has received more than 250 sign ups out of which around 150 are live now. Upasana claimed that they have processed transactions worth Rs75-80 crore via Webpay till now. In terms of differentiations, Upasana said Zaakpay merchants can sign up online since they have an online application process after which an integration happens.
Sequoia-backed Zaakpay is now looking at raising a series A worth $2-5 million for further expansion. It competes with the many payment gateways in the market like PayU, EBS, CCAvenues etc.
(Edited by Prem Udayabhanu)