Snapdeal follows eBay and Alibaba to roll out TrustPay
Snapdeal.com, an online marketplace run by Jasper Infotech Pvt Ltd, has rolled out TrustPay, which guarantees full cashback if the company falters in its commitments to consumers. For instance, if the order is not dispatched within three business days after the promised shipping date, the company will return the money.
The introduction of TrustPay was first reported by NextBigWhat and the feature is applicable to all modes of payment.
When a buyer makes a payment on the site, it will be held with TrustPay and won't be disbursed to the vendor (since Snapdeal is a marketplace where other vendors get to sell) until the product is delivered and the consumer is satisfied with its quality. It also provides the flexibility to cancel an order if that is done prior to the dispatch date. However, if the company does not hear from the consumer within seven days of product delivery, the payment will be automatically released to the seller.
TrustPay from Snapdeal is very much in tune with what other global marketplaces have in place. eBay, which has a significant presence in India, does it through PaisaPay while Chinese e-commerce giant Alibaba has created its own third party payment system called Alipay. Alipay works with an escrow account where the consumer's payment is stored to ensure guaranteed delivery of quality product before the payment is released to the seller.
Recently, a large Japanese internet & media conglomerate and Junglee's founders, Venky Harinarayan and Anand Rajaraman, co-invested in a large funding round worth some $50 million which was led by eBay.