Flipkart PayZippy - Online Payment Gateway For Indian Merchants
PayZippy - an online payment gateway service from Flipkart Payment Gateway Services (FPGS) Pvt. Ltd. has been launched exclusively for Indian merchants. The service will allow merchants to accept card payments and it's been under use by Flipkart for quite some time now. The product is currently available to merchants and a new product for the users to pay online is expected soon. Users will be able to save their card information securely with PayZippy and then use the PayZippy payment gateway service to make payments on the websites that have integrated the gateway.
PayZippy uses world class encryption technology to save your card information. Flipkart's already obtained PCI DSS (Payment Card Industry Data Security Standards) which basically is a certification of the security of the digital data. Signing up on PayZippy is easy - and all you need to do is create an account one time with your email ID or mobile number. Once your account is created, you will have to link your card with your account and you're done. The sign-ups are expected to begin soon!
The service will accept credit and debit card (MasterCard, Visa, Maestro) and Flipkart's currently working on enabling Net Banking, AmEx, Diners and EMI options into their service. The FAQ page says that all of these services will be launched very soon.
The service also supports international payments, but you'll have to get special permissions from PayZippy team to enable it.
Sachin Bansal, co-founder and CEO of Flipkart said, "Flipkart has enabled e-commerce in India over the last six years. Throughout our journey we were always looking to build solutions that could empower the whole ecosystem and not just Flipkart. Flipkart’s Marketplace & Payzippy are the first two examples of this. This is an exciting beginning”.
The service promises higher conversions through smart transaction routing and intuitive payment experience. Users without a PayZippy account will be able to enter their card details without leaving your website. The service works with mobiles and tablets and offers an innovative mobile optimised UI for payments.
The most important question is about Pricing. We're impressed with what Flipkart's come up for the merchants -
1. There is Zero Sign Up Fee.
2. There's no Annual Maintenance Fee
3. No other hidden costs.
For Debit Cards -
0.75% of the overall transaction value for orders < Rs. 2000.
1% for the transactions over Rs. 2000.
For Credit Cards-
Monthly Transaction | Pricing
1. Rs. 0-5 Lakh | 3.5% (Promo: 2.5%)
2. Rs. 5-10 Lakh | 3.25% (Promo: 2.25%)
3. Rs. 10-25 Lakh | 3% (Promo: 2%)
4. Rs. 25-100 Lakh | 2.5% (Promo (2%)
5. Rs. 1 Cr+ | (Get Custom Quote From Flipkart)
Our take - Well, we aren't surprised! The speculations that Flipkart will eventually enter into Payment Gateway services have come true. The ever dabbling Indian ecommerce markets require the players to exercise control over the payment systems across the ecosystems and the launch of PayZippy is a very logical step in the right direction. The pricing they've come up with is definitely attractive and should attract merchants to use it. It'd be more interesting to see how this new development helps Flipkart step up their game against the international bulldozer - Amazon! We're all ears to your opinions.
PayZippy uses world class encryption technology to save your card information. Flipkart's already obtained PCI DSS (Payment Card Industry Data Security Standards) which basically is a certification of the security of the digital data. Signing up on PayZippy is easy - and all you need to do is create an account one time with your email ID or mobile number. Once your account is created, you will have to link your card with your account and you're done. The sign-ups are expected to begin soon!
The service will accept credit and debit card (MasterCard, Visa, Maestro) and Flipkart's currently working on enabling Net Banking, AmEx, Diners and EMI options into their service. The FAQ page says that all of these services will be launched very soon.
The service also supports international payments, but you'll have to get special permissions from PayZippy team to enable it.
Sachin Bansal, co-founder and CEO of Flipkart said, "Flipkart has enabled e-commerce in India over the last six years. Throughout our journey we were always looking to build solutions that could empower the whole ecosystem and not just Flipkart. Flipkart’s Marketplace & Payzippy are the first two examples of this. This is an exciting beginning”.
The service promises higher conversions through smart transaction routing and intuitive payment experience. Users without a PayZippy account will be able to enter their card details without leaving your website. The service works with mobiles and tablets and offers an innovative mobile optimised UI for payments.
The most important question is about Pricing. We're impressed with what Flipkart's come up for the merchants -
1. There is Zero Sign Up Fee.
2. There's no Annual Maintenance Fee
3. No other hidden costs.
For Debit Cards -
0.75% of the overall transaction value for orders < Rs. 2000.
1% for the transactions over Rs. 2000.
For Credit Cards-
Monthly Transaction | Pricing
1. Rs. 0-5 Lakh | 3.5% (Promo: 2.5%)
2. Rs. 5-10 Lakh | 3.25% (Promo: 2.25%)
3. Rs. 10-25 Lakh | 3% (Promo: 2%)
4. Rs. 25-100 Lakh | 2.5% (Promo (2%)
5. Rs. 1 Cr+ | (Get Custom Quote From Flipkart)
Our take - Well, we aren't surprised! The speculations that Flipkart will eventually enter into Payment Gateway services have come true. The ever dabbling Indian ecommerce markets require the players to exercise control over the payment systems across the ecosystems and the launch of PayZippy is a very logical step in the right direction. The pricing they've come up with is definitely attractive and should attract merchants to use it. It'd be more interesting to see how this new development helps Flipkart step up their game against the international bulldozer - Amazon! We're all ears to your opinions.
Replies
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Kaustubh KatdareOh Boy! I just went through leading Payment Gateway Providers in India and found the pricing they're offering. I'll present the in tabular form soon; but till then take a look -
CC Avenue:
Setup Fee: Zero To Rs. 40,000
Credit Cards: 5.5% (Reduces to 2.5% if you pay Rs. 40K setup fee)
Debit Cards: 1.25%
Net Banking: 4%
PayU:
Setup Fee: Rs. 6000 To Rs. 36000
Credit Cards: 4.9% To 2.75%
Debit Cards: 1.25% (Flat)
NetBanking: 4.9% - 2.75%
Flipkart's surely going very aggressive on the pricing! What I'm personally interested is in checking out their user interface and the speed of processing. I think Flipkart will have a lead in that category. Plus, if it allows very easy integration with the eCommerce platforms (through simpler UI) - that'd be a game changer for the entire industry.
Curious to know what people think about the the pricing and overall product? I think Flipkart's got the game right! -
Abhishek RawalI didn't understood.
If creating account for this service is free then What's up with this "setup fee" ?
In last table, Monthly Transaction | Pricing option:1 says,0-5lakh 3.5% (promo:2.5%). What is 3.5% & what's 2.5% ? Sorry if my question sounds like nabs, but I didn't understood >.< -
Kaustubh KatdareThe fee is for merchants! For example, if CrazyEngineers wants to sell t-shirts, we'll have to create an account with PayZippy. The system will allow us to accept credit cards, debit cards, net-banking etc. on this site itself. But for the people buying T-shirts from CrazyEngineers, they'll have an option to pay using their own PayZippy accounts.
If you buy a t-shirt worth Rs. 500 from CrazyEngineers using your debit card, then PayZippy would take 0.75% aka Rs. 3.75 commission. That is you pay Rs. 500, PayZippy keeps Rs. 3.75 and CrazyEngineers (merchant) gets Rs. 496.25.
The merchants don't have to pay any 'setup fee' to use the service. The setup-fee was required by CCAvenue earlier, but they recently launched a new plan for the SME. You, as an end customer won't have to pay anything to register on the site. In fact, you don't even have to register! But if you register, then you can store your credit/debit card information on PayZippy safely and simply check out with that service from any website that integrates with the service.
I hope I made it clearer and easier to understand. -
Abhishek RawalOkay! Understood. Thanks for simple & sleek explanation.
This is great move by Flipkart. I used to buy loads of book from Flipkart, but from past one year I have stopped because the cost I find on the book is around 20-30 bucks more. I can buy the same New edition book from the merchants here & that too without worrying about meeting the requirement of 500 INR for free shipping else +50INR if less than total purchase of <500.
Once it was <100 now <500. -
Kaustubh Katdare-- Entire Indian eCommerce industry seems to be terrified by the arrival of Amazon. I've already heard great reviews about their service and delivery. 😨
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Abhishek Rawal
Have you bought anything from Amazon India ? I guess it's perfect time to ditch Flipkart for Amazon India.Kaustubh Katdare-- Entire Indian eCommerce industry seems to be terrified by the arrival of Amazon. I've already heard great reviews about their service and delivery. 😨 -
PensuGreat to hear these guys are moving forward. I remember once my friends were trying to get a payment gateway and they coudnt find a suitable one. I guess its time to redirect them in this direction!
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Kaustubh Katdare
Nope, I haven't. But those who've ordered stuff from Amazon seem to be impressed. I'll give it a try - maybe the moment they announce PS4 availability in India.Abhishek RawalHave you bought anything from Amazon India ? I guess it's perfect time to ditch Flipkart for Amazon India.
Payment gateway setup has been a problem so far; but both PayU and CCAvenues have simplified the stuff. With Flipkart's entry into the battlefield, I think the price war should now begin.PensuGreat to hear these guys are moving forward. I remember once my friends were trying to get a payment gateway and they coudnt find a suitable one. I guess its time to redirect them in this direction! -
Kaustubh KatdarePardon me for commenting on my own article 😀 but I thought someone would bring this up. There are actually several things that'd decide PayZippy's success in the longer run. Consider this -
1. Naspers currently backs two payment gateways in India - PayU and PayZippy. It's interesting because both these gateways would be directly competing against each other for the larger share of the market. This may put Naspers into difficult situation in making decisions about future investments. If my memory serves me correctly, Naspers had invested about $100m in Flipkart for a cool 10% of the equity; making the overall valuation of Flipkart at about $1 billion.
2. Though Flipkart's offering may look shiny from the pricing point of view - it may not work for the company in the longer run. The strategy here could be to gain as much share of the market in shorter span and then slowly up the commissions. Flipkart's done this in the past with prices of the books. They started offering books at heavy discounts and later began offering prices even at higher prices than the competition.
3. There's no mention of the Refunds policy (I haven't read everything in detail, but couldn't find a mention of it in the first glance). A lot would definitely depend on the efficiency of the gateway to offer quicker refunds. If I am entitled to a refund, I'd ideally like it to be processed on the same business day or within 24 hours.
4. I fail to see a USP! PayZippy looks like just another payment gateway and I haven't seen anything that stands out and makes me want to adapt them over the others. I'd of course give them a try but the 'magnet' factor is clearly missing. Maybe I'm forming an opinion too soon. I'd better wait for the product to officially launch.
What's your take on above points, people? -
Gandalf
eCommerce is a competitive pricing market , Payment gateway TDR prices depends on volume you are selling through the gateway , If you are selling very high volumes you will get a flat rate (not percent) per transaction on the gateway, thats what infibeam does , it gets at flat rate and enables others to sell through its gateway with their buildabazaar project.Kaustubh KatdarePardon me for commenting on my own article 😀 but I thought someone would bring this up. There are actually several things that'd decide PayZippy's success in the longer run.
It is a way to manipulate the system in my view
Your Transaction rates are decided on that basis , if you have a good reseller or partner , he can get you better TDR with some minimal upfront costs.
Being in the market and being a payment gateway and working with clients and payment gateway providers , gives me the inner scoop of the market. 😀
Those rates payzippy offering too costly, zero sign up doesn't mean much then 😀 -
Anand TamariyaIt's good to have a competitor to CC avenue and PayU. But let's see how long Flipkart is able to hold this pricing. Going by their past record, they will soon become as incompetitive (or worse) as others!!
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albsYes. Now we got competition for PayPal in India. Definitely it is going to be a Indian War for Online Payment Processing 😀
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Kaustubh Katdare
Well, PayPal's gotten into problems because of the RBI policies. Payments within India cannot be routed through PayPal. PayZippy's got a big advantage there.albsYes. Now we got competition for PayPal in India. Definitely it is going to be a Indian War for Online Payment Processing 😀 -
Sarathkumar ChandrasekaranGreat move by flipkart.
Definitely merchants will be happy to see the transaction price offers.Payzippy -way to gooooooooooooooo. -
Saandeep SreerambatlaAfter reading the article I havent understood clearly what it is all about. I slowly read all the comments and Biggie your explanation is great!
So, now my question is If I have something and if i want tot sell it through flipkart, then I can make it easy by using payzippy. The commission that payzippy is getting is directly into flipkart's profits is it? -
Kaustubh KatdareFolks at NextBitWhat have come up with a comparison of various payment gateways available in India. The comparison is based only on the 'price' point and does not take into consideration the ease of integration, customer care, ticket answering time, speed of execution etc. But this chart should give you a clear idea of who's offering what to the merchants in India.
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