Snapdeal’s Own Payment Gateway Coming Soon!
How quickly things change – Just a couple of years back, everyone was talking about India not having good online payment gateways. While handful of gateway’s were present, either their charges were too high, or they did not offer the services needed. Literally, everyone was talking about it.
Fast Forward today and the situation has taken a complete U turn. Many new payment gateways have been launched, and with new competition, the existing providers have lowered their charges and made it easier for literally anyone to implement it quite easily!
Earlier in July of this year, Flipkart made announcement of PayZippy, their own payment gateway. And now, looks like Snapdeal is going the same way.
According to ET report, Snapdeal will soon launch its own payment gateway (name of gateway is not released) that will process credit card and debit card payments on their own site. Although, details are not available, the report does mention that gateway in all likelihood will be opened to other ecommerce companies as well.
Given the number of transactions Snapdeal is doing currently, and looking at the expected future growth, this was a given. Snapdeal is targeting a revenue of over 2500 crore in this financial year and they have over 20,000 sellers on the marketplace. Obviously, for such large number of transactions having their own payment gateway is far more cost-effective way to go. In addition to, this they will also have far more flexibility and control over the transactions happening on their platform.
What about others?
If you are an ecommerce site, once you reach a particular size, having your own payment gateway is the only way to go. While, small and medium sized ecommerce sites will not be able to do it, sites like Myntra, Yebhi, Jabong will sooner rather than later launch their own gateways as well.
I would not be surprised if all of these biggies announce their plans for a gateway in next 6 to 12 months.
What is your take?