Flipkart’s launch of it’s own payment gateway PayZippy seems to have affected other providers quite a bit. Infact, PayUPaisa, the new online payment solution brand from PayU India, has now made its payment gateway services absolutely free.
They have launched a ZERO Transaction Charges offer from 1st July 2013, which waives off all transaction charges levied on a merchant for any transaction. So going forward a merchant registered with PayUPaisa does not have to pay any Transaction Discount Rate or Merchant discount Rate.
This new plan is applicable to all new as well as existing customers of PayUPaisa. This new offer of Zero Transaction charges is valid till 30th September 2013.
PayUPaisa already has over 4000 merchants signed up with them, however, with launch of PayZippy from Flipkart, and few other new ones in pipeline, this vertical has come alive in India. All payment gateways are now in a hurry to capture new userbase.
This is a smart move by PayUPaisa – They have kept this as a limited time period offer for nearly 3 , which is quite an extended time period to give completely free offering. However, because it is for an extended time period offering, many merchants are sure to give PayUPaisa a try. And if PayUPaisa is able to offer satisfactory services and competitive rates after the initial free period, they are sure to latch on to bunch of customers.
With introductory offers coming in from PayZippy and now from PayUPaisa, I do see likes of CCavenue, Direcpay, Zaakpay and EBS also coming up with some sort of offers. Otherwise PayUpaisa is sure to erode some of their existing customers as well.
What do you think?