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Payment Gateway Charges in India: A Complete Guide

Payment Gateway Charges

Payment Gateway Charges in India: A Complete Guide

Do you have questions about payment gateway charges and would want to know more? Read on to find out more about payment gateway charges.
Payment gateway charges refer to the cost incurred by businesses to process payments online through their websites or applications using the chosen payment gateway. Payment gateways usually charge a percentage of the transaction amount, but the amount could vary depending on the type of payment method used and the amount of risk involved.

What are Payment Gateway Charges?

You might think the difference in payment gateway charges between different businesses is not significant enough. However, for bigger businesses whose revenues are measured in crores, even a difference of one or two decimals can have a significant impact on the profits. 

Payment gateways enable you to accept online payments on your website or app in addition to managing transactions, providing instant refunds, and allowing real-time bank settlements.

In other words, the payment gateways charges are the fees charged to provide all of these services, as well as allowing your customers to pay on multiple platforms.

Payment Gateway Charges are Affected by Several Factors-

When you integrate a payment gateway into your website or application, it enables you to accept online payments. To facilitate online payments, the payment gateway service provider partners with banks and card networks such as Visa and Mastercard. 

What influences the decision to choose a payment service provider: its market reputation, the success rate of payments, or the number of payment sources supported? According to changing market trends, many people believe that a product’s price is one of the factors that determine its quality. Choosing a payment gateway depends on factors like the Merchant Discount Rate or MDR and other associated charges.

  • Merchant Discount Rate (MDR)

The merchant discount rate (MDR) is the percentage that is charged by the payment service provider when your business accepts online payment methods or debit and credit cards. MDR percents are defined before the merchant agrees to set up and use any services and, therefore, the charges are assessed on every transaction made. 

MDR consists of bank fees, interchange rates, chargeback fees, point-of-sale fees, and assessment fees charged to customers and merchants who use digital payments.

  • Interchange Rate

Interchange Rate refers to the amount credit card companies like VISA, Mastercard, and Discover charge the receiving bank for every payment received by a credit card transaction.

The rate includes the transaction handling costs that are incurred by issuing banks and the investments they make to minimize the risk of fraudulent transactions. Merchants’ interchange rates are also affected by the type of card, the amount of risk associated with their business, and how they accept payments (swipe or online).

  • Merchant Account Provider Fee

Having a merchant account linked to the credit card network is a necessity for accepting credit card payments online. The merchant account lets you accept online credit card payments, and the provider deposits the received sum into your bank account regularly.

Based on the volume of transactions and type of business, the merchant account provider may charge a small fee in addition to the interchange fee. There may be a monthly maintenance fee as well as an additional fee for disputed transactions.

  • Payment Security

Customers are also charged differently based on how they use a payment gateway, be it an in-store transaction, an online transaction, a telephone transaction, etc. Each type of transaction carries a different level of risk.

For instance, receiving payments in an offline store via a card swipe machine is less risky and is assessed lower fees, than online transactions which are highly vulnerable to cyber-attacks.

Payment gateway charges

Payment Gateway Charges and Components

To facilitate online payments, gateway fees usually comprise various components. Here are the components of the payment gateway fee:

  • Payment Gateway Setup Charges

The setup fee for a payment gateway is a one-time fee charge levied at the time of integration of the payment gateway to set up a merchant account. 

  • Annual Maintenance Charges

Payment gateway providers charge an annual maintenance fee to cover the cost of maintaining software, security, payment technology and to cover operational costs. 

  • Integration Charges

Integration charges are fees the payment gateway charges for integrating the payment gateway into the merchant’s website or app. 

  • Merchant Discount Rate

The merchant discount rate (MDR) is the percentage that is charged by the payment service provider when your business accepts online payment methods or debit and credit cards.

What Are The Benefits Of Considering Payment Gateway Charges?

Payment gateway charges vary depending upon several factors, including the types of transactions processed, the frequency, the type of market, and the amount of revenue generated by a business.

Making a detailed comparison will be easier if you are aware of the fees charged by different payment gateways. You can then compare other factors, such as the number of payment modes supported, payment security, success rate, and other factors, based on these charges.

FAQs

  1. What is TDR?
    Transaction Discount Rate (TDR) is a charge for usage of a payment gateway that is assessed per transaction.
  2. What is the purpose of payment gateway charges?
    Service providers use payment gateway charges to cover various expenses, such as software maintenance, security, payment technology, and to cover operational costs.
  3. What is MDR?
    The merchant discount rate (MDR) is the percentage that is charged by the payment service provider when your business accepts online payment methods or debit and credit cards.
  4. How do I select the best payment gateway for my online business?
    The best way to choose a payment gateway for your business is to compare its features with the needs of your business and before making a choice, compare the options from various sides.
  5. What are payment gateway charges?
    The payment gateway charges are the fees charged to provide services for managing transactions, providing instant refunds, allowing for real-time bank settlement, as well as allowing your customers to pay on multiple platforms.

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With SabPaisa Payout, bulk payments are now hassle-free

SabPaisa Payout

With SabPaisa Payout, bulk payments are now hassle-free

Businesses function through cycles of payments, and a strong financial management system is the core of every business. Whether you are collecting payments from customers or paying your vendors and employees, businesses are dependent on payment systems 24/7. While a business is, of course, interested in bringing in revenue, the payout is also incredibly important for bulk payments.

What are Payouts?

The payout is an amount of money given to someone in recognition of the work they have done. Payouts are any payments the business makes to its stakeholders, vendors, partners, customers, and employees. IMPS, NEFT, RTGS, and UPI are some of the methods companies used to process payouts in business banking. 

What does Payouts do?

Payouts make it easier for businesses to disburse payments to different owners. Refunds, vendor payments, reward distribution, and more can be done with Payouts.

How to use SabPaisa Payout to manage bulk payments?

SabPaisa Payout is the easiest way to pay your vendors, customers, partners.

SabPaisa Payout is a holistic payment solution for Businesses that seek to pay out to their Partners/Vendors/Customers with complete control over the transactions and a system with the easiest reconciliation and settlement. It is a strong API-backed solution that provides complete customization controls to businesses with a Dashboard for Real-time updates and reports.

  1. SabPaisa Payout is an In-house developed Technology which gives a Higher Success Rate. 
  2. SabPaisa Payout gives complete control over the Merchant’s payout management providing 100% customization options for in-depth integration with the System.
  3. 24×7 Payments options for a hassle-free transaction even on weekends and bank holidays.
  4. Multifold security layers with Bank Account and Whitelisted IP Transaction Validation to secure the payments.
  5. Dedicated Centralized dashboard that provides add-on support for all the transactions, to provide hassle-free real-time support.
SabPasia Payout

Two-Step Verification for higher security 

Centralized Merchant Dashboard

Features of SabPaisa Payout

  • Merchants can deposit amounts in SabPaisa’s account and payout their customers, vendors, etc through SabPaisa’s APIs.
  • Dashboard for the Merchant.
  • Real-time Transaction reports.
  • Whitelisted IP for transaction validation.
  • Bank account validation before settlement.

What businesses can be benefitted from the use of SabPaisa Payout?

SabPaisa Payout can benefit a wide sector of businesses, the businesses that can take the privileges of SabPaisa Payout are;

  1. FMCG/FMCD

    FMCGs are fast-moving consumer goods that have a short shelf life due to high consumer demand.

    FMCD are Fast Moving Consumer Durables, while FMCD products don’t exhaust after one use, they can be used for longer periods of time.

    SabPasia Payout Benefits-
    – Channel Incentives
    – Dealer Contests
    – Influencer/Retailer Incentives
    – Add Sales & Sub-wallets

  2. BFSI

    BFSI (banking, financial services, and insurance) consists of companies that offer financial products and services.

    SabPasia Payout Benefits-
    – Loan Disbursals
    – Account Validation
    – Utility Bill Payments
    – Channel Payout

  3. Manufacturing
    Manufacturing is the process of converting raw materials into finished products with the help of tools, techniques, machines, chemicals, etc.

    SabPasia Payout Benefits-
    – Supply Chain Payouts
    – Utilities
    – Channel Incentives

  4. Gaming and Content Sharing

    Influencers in the Gaming and Content Industries are individuals who advertise and talk about the gaming/lifestyle culture through live streams and reviews of the games and companies they work with.

    SabPasia Payout Benefits-
    – Referrals
    – Influencer Payout
    – Player Winnings
    – User Engagements

  5. Referrals

    Businesses use referral marketing strategies to grow their customer bases by making use of references, word-of-mouth, and other methods. A referral program is one of the most effective means by which a seller-company and its partners can collaborate.

    SabPasia Payout Benefits-

    – Driver Based Payouts
    – Fuel Toll Payments

  6. E-Commerce
    A business or commercial transaction that involves the exchange of information over the web is referred to as an online business or e-business. E-commerce is a business model that involves buying and selling goods and services online.

    SabPasia Payout Benefits-
    – Vendor Payouts
    – Delivery Partners Payouts
    – CoD Product Payouts

To know about our products visit SabPaisa

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How to Create a Payment Link with SabPaisa PayLink

paylink

How to Create a Payment Link with SabPaisa PayLink

You must be wondering, in the digital age of payments why are we talking about Link Payments; having payment options from card to wallets to net banking, UPI, and so on, do we need links to process our payments? In answer to that, yes! Link Payments are one of the most convenient payment collection methods, for example, if you do not have access to a card swipe device or wish to receive payments electronically from your customers. The use of payment links in such situations can simplify and speed up the process of processing transactions. A few clicks are all it takes to send a payment link to customer email addresses, messaging apps, or any other point of contact you have with them.

How does an online payment link work? How can they help your business?

Let’s take a closer look at everything you’ll need to know about adding Link payment options to your business in this quick guide.

What is a Payment Link?

A payment link is a method of requesting payment from customers through links, who pay for your goods or services in ways other than traditional online store purchases after they have confirmed their purchase decision with you. Simply said it is an online payment method in which the merchant can create a payment link online and share it with customers for them to make a quick payment.

Consider a payment link as a ‘Pay Invoice’ or ‘Pay Now’ button sent to your customers, requesting that they act on their purchase confirmation. Payment links can be sent via email or messaging apps, allowing you to communicate with your customers in multiple ways.

When those customers click the payment button, they are directed to a payment page (checkout page) that displays the amount owed. They can safely enter billing and shipping information, and the transaction can be processed.

Why should you create payment links?

A payment link is a method of requesting payment from customers through links, who pay for your goods or services in ways other than traditional online store purchases after they have confirmed their purchase decision with you. Simply said it is an online payment method in which the merchant can create a payment link online and share it with customers for them to make a quick payment.

Consider a payment link as a ‘Pay Invoice’ or ‘Pay Now’ button sent to your customers, requesting that they act on their purchase confirmation. Payment links can be sent via email or messaging apps, allowing you to communicate with your customers in multiple ways.

When those customers click the payment button, they are directed to a payment page (checkout page) that displays the amount owed. They can safely enter billing and shipping information, and the transaction can be processed.

How to easily enable a payment link from SabPaisa-

SabPaisa PayLink functions on the same concept. PayLink is a Link Based Payment method enabled in the Merchant’s Dashboard, through which the merchant can collect payments with the help of links.

PayLink allows the merchant to keep the customer list or bulk upload list to collect payments.

Features of PayLink-

  • Customer List and Bulk Payment List creation.
  • Payments reports in real-time.
  • Link Generation for Single and Bulk payer.
  • Real-Time Reconciliation.
  • Multiple Mode Payment via Links.

How SabPaisa PayLink functions-

Payment link generation can be created for any particular user.

PayLink 1

Link redirection to the checkout page.

PayLink 2

Details of Payment Link, in this date of creation, date of expiry, Payment, Purpose of payment collection can be added.

PayLink 3

Easy bulk upload.

PayLink 4

What businesses can be benefitted from the use of payment links?

Whether it is a B2B or B2C business, both can benefit from payment links to simplify the payment process. With SabPaisa PayLink the merchant gets a checkout page that offers multiple payment options to accept payment from the customer. When powered with SabPasia Payment Gateway, the process of sharing links for accepting payments becomes safe and secure. Users get notified with payment details and merchants can access real-time transaction reports.

Businesses like Retail; Education (School, Colleges, and Coaching Center); SMEs; Hospitals or Clinics; Hotels, and Service Centers can easily access the SabPaisa PayLink for hassle-free payments collection

 

To know about our products visit SabPaisa.

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Security feature: UPI vs Wallets vs Digital Cards

How secure is your payment ecosystem?

The other day I was chatting with a villager on my trip to Rajasthan. He was the owner of a large oilseeds field. Unfortunately, he faced a crop failure due to a delay in rains. Luckily, the crop insurance scheme was his savior.

“What mode do you use for insurance payment?” I asked inquisitively.

“I prefer the UPI Madam. It is so convenient. Direct bank to bank transfer. It has made our lives easier. Previously, I made use of wallets. But, loading money gets hectic sometimes. Also, the security is minimal. How can we be assured that our money is in safe hands?” he replied.

It was amazing to see the outreach of the UPI payment system to the deep pockets of the rural regions of India. Interestingly, the security features of the UPI payment mode left me in awe.

Security Feature of UPI vs Cards vs Wallets
Security features of UPI vs Cards vs Wallets

UPI boasts of a superior payment mode as compared to wallets and digital cards. With UPI 2.0, the signed intent & QR and Invoice in the inbox security features are added.

In the course of this blog, let us compare the security features of UPI vis a vis Digital Cards and Wallets.

Security Features of UPI

UPI Security feature 1: Binding with mobile number

This is a significant feature of UPI that brings in the first layer of security. UPI verification of the user happens during the initial login and registration. The UPI app binds with your mobile number to verify your identity. In case, you change the phone or the number, you need to verify your identity again. This option ensures that your credentials stay safe in case of a mobile threat or identity threat.

UPI Security feature 2: Two-factor authentication

The second security feature comes into effect during the transaction process. While registering on UPI, users are given an option to set an MPIN (Mobile PIN). It is a 4 or 6 digit number set up while registering on the UPI app. You can generate it by clicking on create/generate MPIN tab and entering the debit card details (last six digits and card expiry details). In the course of transactions, this MPIN is used to authenticate a transaction. You can also change the MPIN if you forget it, using the same create/generate MPIN tab.  

UPI Security feature 3: Signed intent and QR

With a quick response code (QR) and signed intent option, users can check the authenticity of the merchants. Users have the option to check if the merchants are UPI verified or not. In case the merchant is not UPI verified, users get information via notifications. This security feature ensures that QR code tampering frauds remain low. Hence, signed intent and QR features bring in secure and tamper-proof transactions.

UPI Security feature 4: Invoice in the inbox

This is a noteworthy and secure feature addition to the UPI. Before initiating your payment to the merchant, it is possible to view the generated invoice. This brings in security by verifying the credentials of the transacting merchant. In other words, this feature safeguards you from fraudulent transactions.

 

Security Feature of Digital Card

Comparatively, Digital card offers different security features. Nevertheless, it is unique and robust in itself.

For example, Digital cards have an option of confirming the transaction either using password or an OTP (one time password). Also, some banks require you to not repeat the previous three used passwords. Further, SMS cum Email alert is sent for each transaction.

 

Security Feature of Wallet

As compared to UPI, wallets offer a lesser level of security. For example, many wallets do not offer two-factor authentication. But on the other hand, the QR code feature of wallets minimizes the payment data.

Nevertheless, there is a chance of security compromise in the case of wallets due to the indirect involvement of the bank. It is basically a wallet to wallet money transfer.

Summary

  • UPI offers security via 2 factor authentication, QR & Signed Intent and Invoice in Inbox
  • Digital Card security is via password or OTP
  • Wallet security follows a 1 factor authentication

References:

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5 Ways How UPI is Changing the Payments Ecosystem in India

UPI has touched almost all sectors of India

Last week, I was at a new tea shop near my house. The tea cost me a meager ten rupees. But, upon checking my wallet, I was shocked to find it empty. The shop owner read my situation and told me, “Madam you can pay via GooglePay. Look at the code scanner, just scan and pay.” Then came the live-action of the UPI payments ecosystem in India.

I was in for another shock when my Google pay account was temporarily down. I saw the customer queue increasing. Immediately, I downloaded Phonepay into my mobile. Phonepay is a prominent app which supports UPI transaction. The payment took place within no time. This is the outreach of the UPI across the payments ecosystem in India.

UPI Payments Ecosystem in India

Why has UPI captured the payments space within four years of its inception? What makes it stand out from wallets or digital cards? UPI offers an immediate payment service with the help of either a VPA, mobile number or Aadhaar number. It makes the transaction channel secure and hassle-free.

UPI has made its mark felt in the different sectors of the Indian economy like Education, Health, Social Sector Schemes, etc. In the course of this blog, let us explore the outreach of the UPI payments ecosystem in India.

Payments Ecosystem 1: Government Schemes

Government of India’s flagship program Digital India aims to make India a digitally empowered society. Launched in the year 2015, Digital India relies on advanced technological infrastructure to serve the needs of the customer. Of this, digital payment forms an important cum core part.

In tune with its Digital India initiative, the government launched the BHIM UPI (Bharat Interface for Money). It makes use of the UPI platform for immediate bank to bank money transfer. Transfer validation happens either using a VPA (Virtual Payment Address) or a mobile number.

Key government schemes like Jan Dhan Yojana and Direct Benefits Transfer (DBT) have started using the UPI payments interface, transitioning from the RTGS or the NEFT based platform. It brings in ease and security to the payment transactions since the user does not have to remember complex details like the account number, bank name, etc.

Payments Ecosystem 2: Education

The education sector is witnessing rapid stride in the use of the UPI Platform. Payment platforms like Razorpay, Instamojo, SabPaisa, etc. have enabled it on their platform. For example, SabPaisa is the world’s first hybrid payment platform. It offers numerous payment modes ranging from UPI to Cards to Netbanking to Cash to NEFT. UPI is one of the focal product that helps in seamless payment transmission while paying college admission fees or paying the late fine.

Payments Ecosystem 3: Health

Health schemes in India are transitioning to the use of digital payments like UPI. Further, to promote the use of UPI, the government provides a number of incentives.

The major health schemes in India are Universal Health Insurance Scheme (UHIS), Ayushman Bharat, Aam Aadmi Bima Yojana (AABY), Rashtriya Swasthiya Bima Yojana (RSBY), etc. As part of the schemes, patients can pay through various digital modes like UPI, BHIM, credit/debit cards and wallets. The Ministry of Health and Family has issued advisories to all government and private hospitals to facilitate digital payments for ease of transactions.

Payments Ecosystem 4: Business

The business sector is witnessing new opportunities with the rapid advancements in UPI. For example, Fintech companies in India are being flooded with requests at an international level for UPI customization. Further, NPCI has relaxed the rules for small companies by increasing their monthly limit of Rs. 50,000. Also, the merchant onboarded under this category does not have to pay anything to the acquirer.

Payments Ecosystem 5: Miscellaneous

UPI has pervaded every aspect of our life. In addition to Tier I cities, Tier II and Tier III have seen an increased use of UPI. For example, if a user in a Tier III city wants to do a DTH recharge, he has to simply open the UPI app on his mobile and scan the code on the TV screen to kickstart the payment process. Similarly, UPI is used to buy on-demand movies in a seamless manner with the click of a button.

On the whole, UPI is the ripe technology of the future which continues to make notable advancements in a rapid manner. From education to the business sector, UPI has touched upon all the major sectors of the Indian Economy. In commensuration with Artificial Intelligence and Machine Learning, UPI holds significant promise for the future.

References:

For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date.

Learn more about SabPaisa here: https://sabpaisa.in

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Top Five UPI Platforms to Lessen your Payment Headache

Know the UPI Platforms that is best for you

When was the last time you did a digital payment? How pleasant or nasty was the process? What was the major challenge that you faced? Was it a Net connectivity issue or a wallet loading issue? Did you try using the UPI platforms?

UPI is rapidly taking over the payments space in India. Did you know that UPI platforms will dominate the payments space with 59% payment transactions in the near future? Mind-boggling isn’t it?

UPI Platforms - UPI Apps
UPI Platforms – UPI Apps

UPI or Unified Payments Interface is a next-generation instant payment platform built by NPCI (National Payments Corporation of India). With a simple account to account transfer process using the VPA (Virtual Payment Address), UPI is the favorite of Indians running across different classes. Interestingly, UPI crossed the landmark 1 billion mark in October 2019.

There are a number of UPI platforms that are both App as well as non-App based. Each of them offers a unique user interface based on the different user requirements. But, how to select the best UPI platform?

In the course of this blog, I will give you a tour of the top UPI platforms. Hope this helps you in both your personal and professional endeavor.

1. UPI Platforms 1: GooglePay

UPI Platforms - Google Pay
UPI Platforms – Google Pay

Google Pay is one of the popular payment apps from Google. Unlike BHIM App, Google Pay does not call for Aadhaar verification. There is a direct linkage of bank account using details like name, account number, IFSC Code, etc. Also, Google Pay (Tez) has a unique feature of AudioQR sharing directly from one mobile to another. Further, like BHIM UPI App, the amount is transferred from a bank account to another, thereby reducing the need for an intermediary wallet.

Going ahead, Google Pay is also expected to support Credit Cards, Debit Cards, and e-wallets. 

2. PhonePe

UPI Platforms - Phonepe
UPI Platforms – PhonePe

PhonePe is a popular payment app with the option of UPI connectivity. The most important feature is the option of an additional wallet link and non-necessity of initial login. There is no option of mandatory login using the Phonepe App. One can directly login to the site using the website URL. Also, Phonepe gives access to popular linked wallets like JioMoney, Airtel Money, Freecharge, etc.

Going ahead, Phonepe has an innovative feature of navigating between over 50 apps. This is possible without downloading the app on your mobile or updating the same.

3. UPI Platforms 2: BHIM UPI

UPI Platforms - BHIM UPI
UPI Platforms – BHIM UPI

BHIM App is the most popular UPI payment App. It has an interesting feature of making UPI transactions from different banks on a single platform. Interestingly, BHIM App at present is available in 13 languages.

In addition to, Send Money, Receive Money and Scan & Pay option, you can also check your pending transactions via BHIM App. There is also an option of raising complaints about the declined transactions.

Further, the built-in security feature allows you to block users who put forth illicit money requests. Also, the user privacy feature enables you to disable your first UPI Id in case of the generation of a secondary UPI Id.

Going ahead, you don’t have to worry about payment reminders or splitting bills. There is an option to set a payment reminder as well as split bill with multiple UPI users in an instant.

4. Paytm

UPI Platforms – Paytm

Recently, Paytm has enabled BHIM UPI on its payment platform. It follows a simple setup process with the selection of the ‘UPI App’ option from the Paytm App. Once the bank account and mobile number are verified, you can set the MPIN to start the transactions. The UPI Id follows the format [email protected]

Further, on changing the mobile, the verification of the new mobile number is mandatory to use BHIM UPI on Paytm.

5. SabPaisa

UPI Platforms - SabPaisa UPI
UPI Platforms – SabPaisa UPI

SabPaisa is the next generation payment platform that offers a hybrid payment gateway model ( e-offline + e-online ). It is the only hybrid (online+offline) payment platform in the world that provides businesses and organizations a single unified dashboard for collecting payments from their customers/members through any and all channels, online or offline, from UPI to Cash.

Once a customer chooses to make payment through the SabPaisa platform, he/she is guided to the checkout page with UPI as one of the prominent options for payment. In the next step, the customer has to enter the Virtual Payment Address (VPA) to initiate the transaction.

On the whole, UPI continues to rule the roost with its simple yet innovative features. From direct bank to bank transactions to AudioQR based payments (in Google Tez), UPI gives you the option of performing hassle-free payments. Further, with UPI platforms like SabPaisa, you can realize the potential of online cum offline payments.

References:

For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here: https://sabpaisa.in

 

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If you love UPI, you must love these 4 institutions more

Know these institutions to learn more about UPI

Introduced in the year 2016, UPI has positively altered the payments ecosystem in the country by bringing in a wave of digitization. UPI simplifies transactions by making use of the VPA (virtual payment address). It avoids the complex credential entry while making card transactions. Secondly, with the launch of UPI 2.0, features like QR & Signed Intent and Invoice in the inbox has scaled up the UPI security. Behind the success of UPI lies the efforts of numerous UPI institutions like NPCI, RBI (Central Bank), other banks, etc who manage the seamless functioning of the UPI system.

UPI institution

In the course of the blog, let us learn more about the UPI institutions that ensure a safe and secure transfer of your money.

UPI Institution 1: NPCI (National Payments Corporation of India)

National Payments Corporation of India is an organization dealing with retail payments and settlements in India. It is an initiative of the RBI and the Indian Banks’ Association, set up in 2008. The  State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, and Citibank are the ten core promoter banks of NPCI.

The core payment products offered by NPCI are:

  • Rupay
  • Bhim
  • UPI
  • NACH
  • Immediate Payment Service
  • AEPS
  • Bharat Bill Payment System
  • BharatQR

UPI is one of the flagship product developed by NPCI. Introduced in 2016, UPI is a safe and secure medium for payment transfers. With UPI 2.0, new security features like Invoice in the inbox and Signed Intent & QR has enhanced the outreach of UPI.

UPI Institution 2: RBI

RBI is the apex bank of India supervising all the public, private, rural and cooperative banks in India. In other words, RBI sets the monetary policy in India in commensuration with the fiscal policy. 

Established under the RBI Act, 1964, RBI has its headquarters at Mumbai. The regional centers spread across the four zones are North in New Delhi, West in Mumbai, South in Chennai and East in Kolkata.

The Central Board of Directors is the major decision making of the RBI. The Board is headed by a Governor and not more than four Deputy Governors.

UPI Institution 3: UIDAI

The Unique Identification Authority of India is a statutory body responsible for the implementation of the Aadhaar based payments system in the country. It was established under the provisions of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

UIDAI issues the Adhaar number to all the residents of the country. Aadhaar number is a 12 digit unique identification number for the Indian residents.

Aadhaar is a multi-purpose card used as an ID card to avail voter’s Id, mobile connection, driving license, etc.

UPI Institution 4: UPI App Service Provider

There are many service providers who have enabled UPI on their app. For example, some of the famous service providers are GooglePay, Phonepe, Paytm, etc. Each service provider offers unique and customized UI features to use UPI services.

On the whole, the successful UPI transaction depends on the successful collaboration and interoperability between all the above-mentioned organizations. 

References:

For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

Categories
digital payments payment gateway Uncategorized

Top 12 UPI-IMPS difference that you should not miss

Choose the best payment mode to grow your business

Did you know that the Asia Pacific region is one of the strongest growing markets worldwide? Expert prediction of the compound annual growth rate of 35.2% justifies this fact. Interestingly, nations like India and China is pioneering market growth via online payment modes. Of the numerous payment modes available in India, it is important to know the UPI-IMPS difference.

In a fast-paced world, the payment ecosystem is constantly evolving based on the consumer’s needs and behavior. Be it e-commerce, retail or startup sector, customers prefer faster purchases and instant payment settlement. Hence, to cater to these needs, digital payment modes have grown by leaps and bounds in India. In addition to the banking cards and prepaid cards, UPI and IMPS are the sought after medium for instant payments in India.

UPI-IMPS

UPI (Unified Payments Interface), developed by NPCI is a popular instant payment settlement system regulated by RBI. On the other hand, IMPS (Immediate Payment Service) brings in interbank electronics transfer in an instant manner. Though, performing similar functions, UPI and IMPS differ in terms of transfer time, card details, security, etc.

In this blog, let us learn the basic differences between UPI and IMPS.

1. UPI-IMPS Difference 1: Ease of transaction

For making an IMPS transaction, you need to enter a lengthy and complex data ranging from Name, Bank Account, IFSC code, etc. This creates inconvenience to a user. On the other hand, the UPI transaction is a simple process of solely inserting the Virtual payment address (VPA) of the payee.

2. UPI-IMPS Difference 2: App compatibility

To make an IMPS transfer, one needs to have the particular app of the debiting account. On the other hand, UPI gives a flexible option of linking with multiple bank accounts from the same app. This reduces space issue upon downloading apps of different banks, in case of having multiple bank accounts.

3. UPI-IMPS Difference 3: Security

As compared to IMPS, UPI gives a secured medium of payment transfer. It is due to the fact that, unlike IMPS, minimal details are entered while making a transaction. But, in the case of IMPS, bank account details are entered, which is perilous on an unsecured network.

4. UPI-IMPS Difference 4: Transfer time

Though IMPS comes with the instant money transfer option, it is lengthier as compared to UPI. Money transfer happens after a new payee registration and a wait time of thirty minutes to make the money transfer to the new payee.

In comparison, UPI payment is done to a new payee without any payee registration or wait time.

5. UPI-IMPS Difference 5: Money Collector

UPI provides the unique option of requesting money collection. You can send the request money message to people who owe you money. This brings in financial credibility in the long run.

On the contrary, IMPS does not provide the option of request money. There is a sole option of money transfer to the registered payees.

6. UPI-IMPS Difference 6: Money transfer abroad

Using the IMPS method, you can transfer money abroad. But, at present, UPI does not have the option of transferring money abroad. UPI transactions are limited to within India, at present.

7. UPI-IMPS Difference 7: Need for smartphone

IMPS transactions require a smartphone along with the relevant app to make payment transfers. UPI followed a similar feature previously. But now, UPI transactions are available in USSD enabled mobiles. This flexibility allows you to access your money irrespective of a smartphone availability.

8. UPI-IMPS Difference 8: Bank account

In the case of IMPS, it is mandatory to have a bank account to send or receive money. It is a bank to bank transfer using IFSC code + Account number or MMID.

However, in the case of UPI, you can receive money even if you do not possess a bank account. You just need to install a payment app to receive money in your wallet.

9. UPI-IMPS Difference 9: Authentication details

UPI payment authentication takes the form of an MPIN number. MPIN is a 4 or 6 digit user-determined number to authorize a payment.

On the other hand, the IMPS transactions happen with an OTP (one-time-password) authentication. Once you confirm and authorize the payment, an OTP is sent to your mobile phone.

10. UPI-IMPS Difference 10: Beneficiary addition

IMPS comes with a lengthy beneficiary addition process. The details like payee name, payee bank account, IFSC code of payee bank, etc are mandatory before making the payment 30 minutes later.

On the other hand,  UPI payment solely requires the use of VPA(virtual payment address) of the payee to initiate the payment.

11. UPI-IMPS Difference 11: E-commerce transaction

Both UPI and IMPS supports e-commerce transactions. One can make B2B or B2C transactions using either UPI or IMPS.

12. UPI-IMPS Difference 12: Transaction charges

At present, both IMPS and UPI are chargeable beyond a certain limit ( generally above Rs.1000). For IMPS, there are different charges on a bank to bank basis. However, for UPI, RBI indicates the transaction charge to fall between Rs.0.50 to Rs. 1.00.

Reference:

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

Categories
digital payments payment gateway

How to setup UPI with these simple three steps

Take your payment experience to the next level with UPI

Unified Payments Interface or UPI was launched in the year 2016 to anchor the digital payments in the country. Launched by NPCI (National Payments Corporation of India) post the demonetization, UPI is a real-time payment settlement system facilitating interbank transactions. The UPI setup process comes with simple steps of linking one’s bank account to the generation of the M-PIN number.

The popularity of UPI continues to grow, which can be gauged from the fact that UPI has crossed the 900 million mark in August, led by an increase in merchant adoption of the payment channel and improved smartphone penetration in certain states.

In the course of this blog, let us learn the simple, step by step process of UPI setup.

1. Step One: Download the UPI App

Each bank provides its own UPI App to facilitate UPI payment via its banking platform. Over 30 banks catering to different UPI Apps are available on Google Play Store. One can search for the preferred bank UPI App using the format “Bank Name UPI”.

In case, you are not able to find a specific bank app, you can still use non-bank UPI Apps like:

  • PhonePe
  • MobiKwik
  • Google Tez
  • Paytm
  • Bhim App
  • Axis Pay
  • SBI Pay
  • Uber
  • Airtel Payments Bank

2. Step Two: Register on the UPI App

Once you have downloaded an appropriate UPI app on your mobile, it is time to register to get started with your registration.

  • Select your preferred language from the list of languages that pop up on the language list. Currently, 13 languages are supported by the UPI App.
  • Verify your mobile number by selecting the SIM number which you want to verify. For example, SIM 1 and SIM 2 pops up if you have 2 mobile numbers. Select the appropriate number to link to your UPI account. Make sure that the number is linked to your preferred bank account. Once, the number is entered, 
  • Enter your personal details like Mobile Number, Name
  • Enter your bank account details like Bank Name, IFSC Code, Account number, type of account, etc to link your bank account to UPI.
  • Set UPI PIN by entering your debit card details and entering the expiry date of the debit card. After this, you will receive an OTP from the bank. Upon entering the OTP, you will be prompted to set a 4 digit or 6 digit M-PIN number.

3. Step Three: Start Transactions

  • Send Money: Click on the send or the start payment option to initiate the payment. The names of your contact list who are on UPI show up in the contacts tab. Else, you can initiate the payment by entering the mobile number or the virtual payment address of the payee. Once, you enter the amount, click the send tab. The app will prompt you to enter the MPIN. Upon entering the MPIN, the amount transfer occurs. Confirm the transfer by means of the confirmation message received from your bank.
  • Receive Money: To receive the amount, click on the receive option on the UPI app. Then, enter the mobile number or the virtual payment address of the payer. Upon doing so, the payer gets a notification with the amount to be paid and the associated remarks. It is the discretion of the payer to accept or reject the amount.
  • Transact using the QR Code: All UPI Apps come with an inbuilt QR code scanner. You can either scan the merchant QR code or transfer it to their mobile numbers. The merchant QR code is usually pasted on their bill counters. Not just merchants, even personal account transfer can be conveniently done with the QR code. To do so, you need to select the option collect/pay and click on QR code.
  • Miscellaneous: In addition to the above transfers, there are some additional benefits of UPI transfer. For example, while transferring or collecting payments, you can mark them as your favorite. This eases the scope of future transactions. Further, one can see all the transaction history done on UPI App just like one has on one’s passbook. 

On the whole, UPI has brought in a digital payment revolution in India. It has been one of the positive offset of demonetization in India. With faster and more secure payment transfers, it is a matter of time before it takes an esteemed place in every person’s pocket.

For more information refer:

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

Categories
digital payments fintech payment gateway

Everything you ever wanted to know about United Payment Interface (UPI)

Get answers to the most commonly asked questions on Unified Payments Interface

 

Launched in the year 2016, Unified Payments Interface is an instant, real-time payment settlement system in India. In the last three years, UPI has been anchoring the government’s digital revolution in India.

 

Recently, UPI crossed 1 billion transactions and added 100 million users for the month of October 2019. On a year on year basis, UPI transactions have increased by 135%. With 141 banks on the UPI platform, it is one of the sought after payment settlement systems in India.

UPI for payments
UPI for payments

 

In the course of this blog, let us try to understand some of the frequently asked questions concerning UPI.

 

1. What is the difference between UPI and IMPS?

A unified payment interface is a simplified version of an instant payment settlement system as compared to IMPS. UPI enables a user to make an online money transfer with only a virtual payment address. Hence, the long process of entering bank account, IFSC code, etc for IMPS is done away with.

2. Is UPI transaction free?

UPI transaction was free before April 1, 2019, for all banks. From April 1, 2019, Kotak Mahindra Bank is charging for UPI transactions. Users are charged after 30 peer to peer transactions/month. However, UPI payments via ICICI, SBI and HDFC platform continue to remain free.

3. Is card or wallet necessary for a UPI transaction?

No. Only bank account details are needed for UPI transactions.

4. Is it possible to have 2 UPI Ids?

Yes. It is possible to have up to ten UPI Ids linked to the same bank account.

5. What is the 2-factor authentication system in UPI?

It is the basic security feature of the UPI system. The 2-factor authentication system consists of verification using the M-PIN and the UPI ID.

6. Is mobile banking mandatory for UPI?

No, mobile banking is not necessary for UPI. The important requirements for UPI are Android phone and mobile number linked bank account.

7. Can UPI Id be changed?

Yes, you can change the UPI Id. You can obtain 2 more UPI Ids from the bank.

8. Is the UPI Id the same for all the UPI apps?

UPI Id is mobile-specific. One can create multiple email Ids linked to multiple mobile numbers. Hence, UPI Id remains the same for the same mobile number irrespective of the multiple UPI apps.

9. Does money transfer take place through UPI only during the banking hours?

No, money transactions take place through UPI 24*7.

10. Does the beneficiary need to register with UPI for receiving funds?

No, it is not necessary for the beneficiary to register with UPI for receiving funds. On the other hand, the only requirement for the beneficiary to receive funds is a mobile linked bank account.

11. How much time does UPI transfer take?

UPI transfer takes place instantly. 

12. In case of a change of UPI app, re-registration is required or can I use the same virtual address?

Re-registration is required in case of a change of the UPI app. One needs to just do mobile verification. The virtual address remains the same.

13. What are the different channels for transferring funds using UPI?

  1. Transfer through VPA
  2. Account Number + IFSC
  3. Mobile Number + MMID
  4. Aadhaar Number
  5. Collect / Pull money basis VPA

14. What is the limit of funds transfer with UPI?

The limit of funds transfer with UPI is 1 lakh with an upper limit of 10 transactions per day.

15. What is UPI 2.0?

Launched in Aug 2018, UPI 2.0 is an upgrade to the UPI system. The salient features of UPI 2.0 are the option of linking an overdraft account, setting of mandates, receiving an invoice in the inbox and provision for signed intent and QR.

For more information, refer:

  1. https://www.npci.org.in/upi-faq-s
  2. http://vikaspedia.in/e-governance/digital-payment/unified-payment-interface/upi-faqs
  3. https://www.dbs.com/digibank/in/banking/payments/upi/faqs.page

 

 

 

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

Categories
Digital marketing marketing payment gateway Uncategorized

SEVEN BEST TOOLS FOR DIGITAL MARKETING

Tools to unleash the creativity in you

The gleaming sunshine, the twinkling stars, and the misty raindrops have intrigued human beings from time immemorial. How about taking the experience to the next level? How about immortalizing them in your creations? If you are into digital marketing, nature is the best place to look for inspiration. Further, how do you apply the inspirational idea to boost your business? Here comes the importance of marketing tools. The amazing tools available in the market gives wings to your ideas and makes it come alive.

Digital marketing tools
Seven digital marketing tools to boost your business

In the course of this blog, I will take you through a journey of the most sought after digital marketing tools.

1. CANVA FOR DIGITAL MARKETING

Canva is an evergreen companion of any digital marketer. It comes with an amazing collection of templates catering to different social media platforms. Be it Instagram, Facebook or Twitter, Canva provides the option to create customized posts with the appropriate dimensions. One can choose from a wide range of options such as business cards, flyers, posters, animated video, etc.

Canva for Digital Marketing
Digital marketing with Canva tool

Are you a company which recognizes employees’ efforts via certificates, Canva is your place to be. There is an ample range of certificate template to choose from. Or, if you are unemployed and looking for a job, choose from a range of resume templates.

2.  INVIDEO

How about automatic conversion of your blogs to videos? Invideo performs this functionality to perfection. In addition, there is an option to build a video from bare scratch. This brings in the flexibility of using the tools to give vent to our innovative spirit. Also, choose from a multitude of templates to suit the business environment and the niche clientele.

Invideo for Digital marketing

3. SNOVIO FOR DIGITAL MARKETING

Snovio is one of the sought after digital marketing tool for inbound email marketing. Being a very flexible platform, Snovio gives the option to create different email campaigns based on the customer base and business platform. Interestingly, there is a cap of 200 emails per day for smooth handling of email marketing.

Snovio for Digital Marketing
Snovio for Digital Marketing

4.  SOCIAMONIALS FOR SOCIAL MEDIA POSTING

Are you tired of posting five social media posts each day? Wished for an automated technique to achieve your goal? Here comes the role of the wonder tool Sociamonials. The scheduling of posts can be done on multiple social media platforms in a single go. You don’t have to worry about postings for months together. Moreover, one can analyze the performance of one’s posts via Sociamonials analytics tab. The graphical analytics result gives a three-sixty degrees view of your company’s posts performance.

Sociamonials for digital marketing

5.  DAREBOOST FOR DIGITAL MARKETING

How is the health of your website? Is your security at risk? Are you complying with the necessary SEO standards? The answer to these questions lies in the Dare boost tool. Dareboost analyses your website on 10 major parameters ranging from Quality, Data amount, SEO, Compliance, Accessibility, etc. For a healthy website, a Dareboost analysis once in 15 days is a must. With one email ID, you can have 5 free searches per month.

Dareboost for digital marketing

6.      FIVERR

Ever faced the issue of tracking down your potential clients? It is taxing to get together the precise contact details. At this juncture, Fiverr comes to your rescue. You will encounter diverse service providers of client information. The rate of services starts at a nominal rate of 5 dollars. If you are a startup, aspiring to expand your client base, Fiverr is the ideal tool for you.

7.  WEBTEXTTOOL FOR DIGITAL MARKETING

Blogging is an exemplary way to expand your base in the market domain. Further, blogging is the simplest way to promote your products and build a brand image. Nevertheless, putting across the right message in the right format plays a crucial role. The appropriate language, formatting, grammar, and word usage is pivotal for the success of any blog. Webtextool tool provides a minute and detailed analysis of your blog. The interesting fact about webtexttool is that it is used to draft interview content. Herein, the gender biasedness in the blog is suitably filtered out.

Webtexttool for digital marketing

 

For more blogs, visit http://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

Categories
Banking digital payments Financial intermediary payment gateway Uncategorized

Banking in India explained

Service your needs through the banking institutions

Confused with the choice of a banking institution for your business? Right kind of funding is important for the health of any business. In other words, funding at the appropriate time gives more freedom for creativity and innovation. A well-funded business has more leverage for expansion and growth.

In India, we have a number of banks catering to different customers. Also, we have a mix of public and private sector banks servicing a variety of needs.

Banking institutions
Banking institutions in India to service your needs

In the course of this blog, I will walk you through the different types of banking institutions in India.

BROAD CLASSIFICATION OF BANKS

1. SCHEDULED BANKS

Scheduled banks are included in the second schedule of RBI Act,1934. By being a scheduled bank, one acquires membership of the clearinghouse. Also, the banks can get loans from RBI at the bank rate. Any bank with a capital of more than 5 lakh qualifies as a scheduled bank. Further, scheduled banks keep a cash reserve ratio with the RBI.

2. NON-SCHEDULED BANKS

Non-scheduled banks are not part of the second schedule of RBI Act,1934. The capital requirement of a non-scheduled bank is less than 5 lakhs. Non-scheduled banks are not members of the clearinghouse. Also, they do not have access to loans from RBI at the bank rate. Unlike scheduled banks, non-scheduled banks do not keep a cash reserve ratio with the RBI.

Non-scheduled banks are also called as local area banks in India. Coastal Local Area Bank Ltd, Capital Local Area Bank Ltd, Krishna Bhima Samruddhi Local Area Bank Ltd, Subhadra Local Area Bank Ltd are some of the examples.

TYPES OF SCHEDULED BANKS

1. COMMERCIAL BANKS

A commercial bank provides banking services with a profit motive. They ensure adequate credit creation and stability in a nation’s economy.

  • PUBLIC SECTOR BANKS: Public sector banks have the government as the major shareholder(more than 50%). Over 75% of the banking sector business comes under the purview of the Public sector banks. There are 12 major PSBs in India such as SBI, Bank of India, Bank of Baroda, Central Bank of India, etc. On the whole, there are 27 PSBs in India.
  • PRIVATE SECTOR BANKS: In private sector banks, non-government entities form the major shareholders. There are 22 private sector banks in India. Private sector banks provide a slightly less interest rate as compared to PSBs. Similarly, Private sector banks constitute over 15% market share in the country. Some major private sector banks in India are ICICI, HDFC, Axis, IDFC, etc.
  • FOREIGN BANKS: Foreign banks cater to the jurisdictional laws of both the parent and destination country. 1% of branch network in India constitutes foreign banks. Also, foreign banks have a Priority Sector Lending of 40% and a minimum capital requirement of 5 billion.
  • REGIONAL RURAL BANKS: Regional Rural Banks caters to the funding needs of the rural communities in India. It draws its operating and functional powers from the Regional Rural Banks Act, 1976. In addition, RRBs also cater to payments in government schemes like MGNNEGA and government pension programs. RRB has a joint shareholding of Central government(50%), State government(15%) and Sponsor Bank(35%).
  • PAYMENT BANKS: It is a new category of banks with limited functionality of a bank. For example, payments banks do not issue loans. The deposit limit is 1 lakh per customer maximum. Further, payments banks have a minimum capital of 100 crores.
  • SMALL FINANCE BANKS: Small finance banks service the needs of the small and marginal entities like small farmers, traders, businesses, etc. Small finance bank has 100 crores paid-up capital and a priority sector lending of 75%. Further, they do not lend to big corporates or groups.

2. COOPERATIVE BANKS

Cooperative banks function on the basis of cooperative principles. The ownership of cooperative banks lies with the customers. In India, cooperative bank categorization takes place on the basis of Short term and Long term lending options. Short term lending takes the form of Primary Agricultural Cooperative Societies (PACCS) at the village level, District Central Cooperative Banks at the District level and State Cooperative Bank at the State level. The long term lending is a two-tier structure with Primary Agriculture and Rural Development Banks (PARDBs) at the village level and State Agriculture and Rural Development Banks.

  • URBAN COOPERATIVE BANKS: Urban cooperative banks finances the needs of urban areas, registered under the cooperative societies act. They largely cater to small businesses in urban areas like small traders, low and middle-income groups, etc. UCB regulation happens via both the State Government and the Central bank. State government laws cater to the UCB’s administration while the central bank laws apply in case of regulation.
  • RURAL COOPERATIVE BANKS: Rural cooperative banks finances the needs of rural areas. It caters to agriculture, livestock, rural employment sector, etc.

For more blogs, visit http://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

Categories
Entrepreneur Entrepreneurship fintech payment gateway startup Uncategorized

Innovative techniques for business growth

Tips and tricks to build your business with less investment

Started your own business but lost hopes on not seeing any growth? Capital investment, technology up-gradation, marketing, etc not paying any dividend? If so, you are missing out on some nitty-gritty of business growth.

Successful businesses try to replicate the good practices of their peers. They get the most simple thing right. For example, they make their websites more optimized and appealing. They have more community interaction and peer alliances.

Grow your business
Grow Your Business with these simple tips

In the course of this blog, I will walk you through some simple and inexpensive tips to grow your business. Some tips are very simple that it is often overlooked.

1. Social media visibility for business growth

Social media
Social media for business growth

Top companies have dedicated account on the prominent social media platforms like Facebook, LinkedIn, Twitter, etc. An appealing profile pic and header along with a concise bio provides you with more visitors. The more the number of clicks on your page, the more the chances of visibility of your business.

Secondly, regular posting of well-curated content works wonders. It acts as a credible portfolio for your business. The knowledgeable content on your platform gets the attention of top influencers in your field. This is the quick way to grow your business by leaps and bounds.

2. Regular blogs

Blogs for business growth
Blogs for business growth

Blogging is a significant yet powerful way to outreach your niche customers. It is an inexpensive way to get ranked on the Google SEO results. The regular the blogs, the more the chances of getting noticed on the web. In this way, the probability of your business content being shared increases.

Hence, the next time you get down to blog, think of the huge growth prospects that your words bring to the company.

3. Collaboration for business growth

Collaboration for business growth
Collaboration for business growth

Have you ever shied away from business alliances? Frightened of competition and plagiarism? It’s time to shed your inhibitions.

Successful businesses have learned and grown together. Joint business festivals and workshops help a long way in knowledge sharing. It brings in exposure to good practices. Also, it is a good opportunity to get noticed by successful peers in the industry. As they say, a good opportunity knocks your door unexpectedly.

4. Mobile-friendly website

Mobile friendly website for business growth
Mobile friendly website for business growth

How do you feel when a website takes a too long time to load? Frustrating isn’t it? Now, imagine yourself in the shoes of your customer. A customer will not wait for a long time to make an emergency payment. In these scenarios, it is necessary to have a mobile-friendly website that loads easily with minimal glitches. It is the last thing you want your customer to give negative feedback publicly.

5. Live chat facility

Live chat facility
Live chat facility for business growth

The growth of any business depends on customer satisfaction in the long run. In other words, a prompt and quick response is the best way to win the hearts of your customers. A live chat facility can work wonders. A real-time solution to their problems will bring in more satisfaction resulting in good brand image for your business. A positive review on a platform like Google will make your business high-ranked.

6. Inbound email marketing

Inbound email marketing
Inbound email marketing for business growth

It refers to the process of finding the right customers for your business through a focussed marketing strategy. It involves the scheduling and forwarding of emails customized for different categories of customers. In doing so, you can ensure the outreach to the right customers in your niche domain. It is one of the easiest ways for small businesses to grow online.

7. Community interaction for business growth

Community interaction
Community interaction for business growth

Businesses need new ideas to enhance their growth path. Being a part of a business community brings in value-addition to your business. As a business, you can learn from the plethora of questions posted online. Further, interaction with peer businesses online is a great way to build long-lasting relationships online. For example, Small Business Forum.net, Business Advice Forum, StartupNation Community, etc are some communities for small businesses online.

8. Event participation

Event participation
Event participation for business growth

How frequently do you participate in business events? Business events provide you with the opportunity to showcase your unique products to the business community. Further, it’s the best platform to interact with top-notch business magnates and get your business recognized. Probably, one of them will end up as an investor in your prospective startup.

9. Product innovation for business growth

Product innovation
Product innovation for business growth

It is one of the best ways to stand out in the business market. A unique and compelling product that stands out in the market will naturally have more takers. Further, it will also attract the best brains to your company. Hence, make sure that you continuously innovate to grow your business.

For more blogs, visit http://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

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digital payments Entrepreneur Financial intermediary fintech Hybrid payment gateway payment gateway startup Uncategorized

Top seven startup laws in India

Be compliant with these basic laws to kickstart your startup

KPMG research shows that startups in India have seen a steady rise by seven times in the last decade. This is attributed to a slew of favorable government laws and initiatives in India. As a result, India’s image has grown by leaps and bounds as a startup-friendly country.

Hence, if you are an aspiring startup or a new startup, make sure that you comply with certain startup laws and regulations for the smooth running of your startup in India. Interestingly, India has a number of laws for startups ranging from contract laws, incorporation laws, patent laws, taxation laws, etc.

Startup laws in India
Know the nitty-gritties of startup laws in India

In this blog, I will talk about the core startup laws in India in a simplified fashion.

1. Limited Liability Partnership Act, 2008

Limited Liability Partnership Act, 2008 governs the formation of Limited liability partnership firms in India. Startups registered as LLPs have the flexibility of entering into contracts, hold properties, etc irrespective of the subsequent change in the partners involved.

Provisions of the Limited Liability Partnership Act, 2008:

  • LLP Agreement: It is not mandatory to have an LLP agreement. This reduces the technicalities involved, thereby easing the working of a startup.
  • Penalty: Violation of this Act results in a penalty of a maximum of five lakhs and a minimum of five thousand rupees.
  • Audits and accounts: Audit of accounts of the LLP is mandatory if turnover exceeds 40 lakhs or contribution by partner exceeds by 25 lakhs.

2. Companies Act, 2013

Companies Act, 2017 is the fundamental law for the formation, functioning, regulation, and dissolution of a company. It clearly sets out the responsibilities for different stakeholders of a company like directors, major shareholders, minor shareholders, etc.

Important provisions of Companies Act, 2013 are:

  • One person company: The new provision allows any company to be solely led by one person ( as both the director and the shareholder).
  • Shareholders: Maximum shareholders in a company could go up to a maximum of 200.
  • Women director: The Act provides for the mandatory appointment of a minimum of one woman board director.
  • Corporate Social responsibility: Every company which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the preceding three financial years on corporate social responsibility activities. 

3. Competition Act, 2002

Competition Act, 2002 governs the competitive activities of different organizations in the Indian market scenario. It ensures fair play in the Indian market by keeping a check on anti-competitive activities by the different players.

Key provisions of the Competition Act, 2002 are:

  • Competition Commission Of India: It is the central regulator for monitoring and keeping a check on anti-competitive practices in India.
  • Penalty: CCI can enforce a penalty of up to 1 lakh on any company for anti-competitive practices. 
  • Appeal: Appeal against CCI’s decision can be made by the aggrieved party within sixty days of the judgment in the Supreme Court of India.

4. Insolvency and Bankruptcy Code, 2016

Insolvency and Bankruptcy Code, 2016 aims to create a unified system for dispute resolution in India. It speeds up the dispute resolution process with the help of independent institutions and functionaries. In the past, dispute resolution in India was plagued by issues like red-tapism, organizational inefficiency, etc. Insolvency and Bankruptcy Code, 2016 intends to correct this loophole.

The provisions of Insolvency and Bankruptcy Code, 2016 are:

  • Dispute resolution time: Dispute resolution varies for corporates as well as individuals. The time frame is 180 days, extendable by 90 days for companies. For startups, the time frame is 90 days extendable by 45 days.
  • Dispute resolution request: Dispute resolution request can be put forth both by creditors as well as debtors.
  • Insolvency and Bankruptcy Board of India: IBBI is the insolvency regulator overseeing dispute resolution throughout the country. The board consists of 10 members including representatives from the Ministry of Finance, Law, and RBI.
  • Adjudicatory process: National Company Law Tribunal adjudicates in case of company and LLP firms. Individual and partnership firm related adjudication handled by Debt Recovery Tribunals.

5. Goods and Services Tax Act, 2016

GST Act aims to bring in a single, common taxation regime in the country by combining both central and state government taxes. It comes with the benefits of avoiding double taxation, lowering the prices of commodities and bringing in a competitive market.

Provisions of Goods and Services tax are:

  • GST slabs: The GST system currently has four slabs — 5%, 12%, 18%, and 28%. This simplifies the multiple taxes under the VAT system.
  • Central GST and State GST: Central GST to be levied and collected by the central government and State GST to be levied and collected by the state government.
  • Integrated GST: Integrated GST to be levied and collected by the Central government in case of inter-state transactions.
  • GST Council: GST Council is the governing body for revision of GST on a periodic basis.
  • Beneficial clause for Startups: By availing the input tax credit, startups can offset the regressive effects of the VAT system.

6. Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015

This act deals with the resolution of commercial disputes. Accordingly, commercial courts and commercial divisions of the high court can adjudicate on commercial disputes with a value of at least 3 lakhs.

It’s salient features include:

  • Commercial courts: Commercial courts to be established at the district level and also in the territories with the high court’s primary jurisdiction.
  • Commercial appellate courts: Commercial appellate courts are set up in the areas where original jurisdiction of the high court is non-applicable.
  • Mandatory mediation: Compulsory mediation provided in cases where there is no need for urgent relief.

7. Arbitration and Conciliation Act, 2015

Arbitration and Conciliation Act, 2015 deals with the arbitration of commercial disputes in an institutional fashion. Further, the act aims to make the arbitration process more cost-effective and client-friendly.

The salient features of the Arbitration and Conciliation Act, 2015 are:

  • Arbitral institutions: Supreme Court and High Courts to create arbitral institutions for dispute resolution, that can be directly approached by the parties for dispute resolution.
  • Arbitral award time: Arbitral award to be given within twelve months period, which could be extended by another six months.
  • Arbitration Council of India: Lays down norms for grading arbitral institutions and ensuring an environment of alternate dispute resolution (ADR).

For more blogs, visit http://blog.sabpaisa.in.

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

 

Categories
Banking digital payments Financial intermediary fintech payment gateway startup Uncategorized

Frauds in online payments explained

Simple tips to avoid frauds

A study conducted by the Center for Strategy and International Studies (CSIS) & McAfee show that online fraud is equivalent to 0.8% of the world’s GDP. Most importantly, payment frauds form a major part of this figure.

Online payment frauds connote the illegal transaction by fraudulently acquiring the customer’s credentials. For example, it takes the form of credit/debit card fraud, data theft, friendly fraud, phishing, etc. Incidentally, the advance of technology has advanced the fraud involved as well. Also, fraudsters have devised complex techniques to come out with sophisticated frauds which are very difficult to detect.

Online payment frauds
Some time tested techniques to handle online frauds
Learn the simple tips for combating online payment frauds

In this blog, I will take you through some simple yet time-tested methods to tackle online payment frauds. As they say, prevention is always better than cure.

1. Data Theft frauds

This most common mode of online payment fraud involves stealing digital information of customers like banking account details, credit/debit card information, PIN, etc. For example, in 2017, 1 in 15 people had their identities stolen. Subsequently, the hacking of the credential holder’s account takes place with the stolen data. Further, data theft is also a result of employee negligence in handling an organization’s data. 

Data theft prevention techniques:

  • Regular malware check on the computer system.
  • Use of debit/credit card with pin-chip technology.
  • Frequent change of password every 1-2 months.
  • Regular installation of updated software on systems.
  • Ensuring a secure and protected wifi connection.
  • Do not respond to unauthorized and spam emails.

2. Phishing frauds

In Phishing, hackers camouflage as financial institutions and contact the target victims. In doing so, the various adopted modes are email, telephone, text, etc. For example, the potential target luring happens with fake offers, false email links, attachments and emails from unknown senders. Further, studies show that phishing accounts for 90% of all the data breaches.

Phishing frauds prevention techniques:

  • Use of email filters.
  • Change in browser settings. Do not autosave passwords for payment sites.
  • Timely fraud report to banks to ensure speedy action cum monitoring.
  • Keep a track of URL of links in an email. It is a potent outlet to fraudulent sites that steal user data.

3. Friendly fraud

Friendly fraud is one of the toughest fraud to detect. Herein, a customer makes an online payment and then disputes the purchase by contacting the credit card issuer. Going ahead, the fraudster is refunded while the fraud continues on different payment platforms. Studies show that friendly fraud increases at a rate of 41% every two years. It is on the rise due to the increasing presence of e-commerce companies. Moreover, it is very challenging to detect friendly fraud due to the favoring of customers by credit card companies.

Nevertheless, an estimate of friendly fraud is made by observing a larger than usual average transaction. Also, a high frequency of order coupled with a high amount of stolen orders suggests the presence of friendly fraud.

Friendly fraud prevention techniques:

  • Call recording to verify the veracity of the order.
  • Saving the product delivery information by confirming the signature verification.
  • Blacklisting of suspicious, fraudulent customers.
  • Building cordial relations with customers to maintain a positive brand image.
  • Interconnectivity with online payment peers to obtain updated information about fraudulent customers.

4. Triangulation fraud

This fraud primarily involves three parties involved in a transaction. Firstly, a customer places an order with an e-commerce site. Secondly, the e-commerce site is a fraudulent seller which takes the order and reorders on another website using stolen payment credentials. Lastly, the legitimate e-commerce website unsuspectingly processes the fraudulent order. For example, triangulation fraud is common in the trade of electronics appliances, pet supplies, tools, etc.

Triangulation fraud prevention techniques:

  • Keep a track of repeated product selling behavior of the retailer.
  • Connect with triangulation fraud victims to ascertain the fraud strategy
  • Be in touch with auctions/marketplaces that are known to host fraudulent sellers.

5. Refund fraud

Refund fraud occurs in a situation wherein a customer engages in the frequent return of ineligible items without any concrete reasons. For example, stolen or damaged goods are frequently returned. It often results in e-commerce sites hiking prices to recover the loss due to fraudulent returns.

Refund fraud prevention techniques:

  • Flagging customers resorting to frequent returns.
  • Stricter return policies like discouraging returns without a valid receipt.
  • Serial numbers on goods for verification.

On the whole, payment frauds are an inevitable part of transactions in a digital era. However, the tips and tricks mentioned above can be used to reduce it considerably, if not eliminate it. In addition, be well prepared for any unforeseen scenarios during online payments. Always, keep in touch with the concerned banking and regulatory authorities to safeguard your business and buyings.

For more blog posts, visit http://blog.sabpaisa.in

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digital payments Hybrid payment gateway payment gateway startup

Six capital raising options for your startup

Tips to ensure regular capital for your business

She was young, she was bright, she was full of energy and she wanted to do something remarkable in life. But, her impediments came in the form of gender, age, and finance. Snubbed by banks and considered as a high-risk customer, she struggled with the capital while setting up her venture.

Nevertheless, her sheer grit, determination, and the venture capital model came to her rescue. She set up her first venture with a paltry sum of Rs.10,000 from a garage in Bangalore. Now, she is a successful entrepreneur by the name Kiran Mazumdar Shaw, the Chairman, the MD, and the founder of Biocon. The success of her startup venture has inspired generations.

Capital for startups
Six ways to raise startup capital

Are you facing the same problems as confronted by Kiran Mazumdar Shaw? If so, this blog is for you. These simple tips will enable you to find funding for your dream startup.

1. Bootstrapping method to raise capital

Bootstrapping refers to the use of a self-financing mechanism to raise capital for your venture. Individuals or institutions with an optimum amount of saving use this method. Herein, the role of external financers like angel investors, crowdsourcing, venture capitalists, etc is not present. For example, corporate giants like HP, SAP, and Dell is well known for humble beginnings through the bootstrapping method.

The major benefit of the self-financing method is the retention of the decision making power of the entrepreneur in his business. On the other hand, self-financing comes with financial insecurity in the face of cost overruns and unforeseen challenges.

2. Angel Investors

Angel investors are wealthy individuals providing funding for startups. Funding happens in exchange for ownership equity or convertible debt. Herein, funding is either on a one time or an ongoing basis. Generally, their own money is used for investing in the startup venture. For example, Meena Ganesh, CEO of Portea Medical, is an investor in four startups. In other words, friends, family, and crowd-sourcing options are the major sources of angel investments.

The major advantage of Angel investment is the inflow of a large amount of money for startups. The high inflow further brings in the option of experimenting and taking a risk. Nevertheless, there is a major associated risk of losing one’s decision making control of the company. Also, angel investments do not guarantee regular investments and cash flow. There are chances of fraudulent investment also.

3. Venture Capital

As compared to Angel Investors, Venture Capitalists do not invest their own money in a startup. Instead, the money pooled from different sources is invested in the venture. In return, Venture Capitalists get an equity stake in the venture. Moreover, unlike Angel Investors, Venture Capitalist investment happens at a matured stage of the company. Helion Venture Partners, Blume Ventures and Nexus Venture Partners are the famous Venture Capitalists in India.

In addition to the huge cash flow, the business expertise that comes with a Venture Capitalist is immense. The high profile contacts of Venture Capitalist is a long-lasting source of future business opportunities. Also, the support in the form of tackling legal and procedural challenges of a nascent company is worth noting.

On the other hand, Venture Capitalist funding comes with the downside risk of losing decision making control of your startup. This is detrimental to the success of any startup in the long run.

4. Loan

Bank loans are one of the safest ways of financing your business. Unlike Angel Investors and Venture Capitalists, banking loan doesn’t come with an equity stake or convertible debt. Further, bank loans come with affordable interest rate norms, usually in tune with government incentives. Also, the ensuing taxation benefits further boost startups.

However, bank loans come with procedural and approval challenges. The time consumed in paperwork runs into months in certain cases. Also, bank approval is difficult for startups in very nascent stages of businesses.

5. Government programs and Incentives

Governments across the world are putting in place incentive schemes for the growth of startups. For example, the Indian government’s Startup India scheme gives funding to startups from a consolidated pool of 10,000 crores. This brings in much-needed funding for startup growth. Further, the self-compliance clause gives room for greater trust in the long run. Also, freedom from Capital Gains Tax is a confidence builder for continuing future experimentation with creativity.

On the downside, there is an increased risk of micromanagement by government agencies. This is in the form of delay in approval and disposal of funds.

Hence, the handholding by government schemes is a vital factor for the creation of conducive startup culture.

6. Crowdfunding

Crowdfunding is the process of gathering funds from multiple sources like peers, individuals, venture capitals, angel investors, etc. The different types involve donations, online campaigns, debt, equity, etc. Elanco, Lego, and Unilever are some examples of companies with the crowdfunding platform.

On the positive side, crowdfunding brings in diverse funding options for a startup. Interestingly, there is a brand-building from scratch due to the wide clientele exposure. Also, there is scope for valuable suggestions and feedback which aids in the growth of the startup.

On the downside, crowdfunding brings in the risk of enhanced competition. It is seen that crowdfunding is increasingly becoming popular among businesses, both big and small. Finding the space for your startup is a time-consuming process. Also, the fees associated with various crowdfunding platform is exorbitant. This eats into the profits of startups.

Have you made up your mind on the mode of financing your startup? Depending on the domain, intent, and size of your startup, choose the apt funding option viable for your business. If you have a stable saving, dive into bootstrapping. If parting with decision making is not an issue, explore angel investments and venture capital. Further, if you find the government programs and the bank incentives interesting, go ahead with these options. Lastly, if you are looking for different ideas in addition to diverse funding options, crowdsourcing is your ideal destination.

Do not be deterred with the roadblocks. Just remember that successful entrepreneurs like Kiran Mazumdar Shaw and Bill Gates walked a similar path. The journey of a thousand miles begins with a single step.

Feel free to drop in your valuable comments in the comment section. Let’s learn and grow together.

For more blogs, visit http://blog.sabpaisa.in .

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Blockchain & Crypto digital payments Financial intermediary fintech Hybrid payment gateway payment gateway

Digital payment trends of 2019

Digital payment modes to simplify our lives

Have you faced the challenge of making cash payments at the grocery store? Have you fumbled up due to the lack of cash? Not anymore, with the digital payment system in the offing. Significantly, the digital payment system is the buzzword in the contemporary payment market.

By definition, digital payment systems connote the electronic transfer of money, as opposed to the physical cash payment. This is through different modes like; payment via an app, net­banking, contactless cards, etc. Going
ahead, digital payment is the need of the hour in consonance with a lot of benefits. Of these, multiple payment options, payment tracking, safety, and security take priority.

Digital payment modes
Learn about the digital payment modes which simplified transactions.

In this blog, I will walk you through the sought after payment modes of 2019.

1. Digital payment using E­ Wallets

E­wallets connote virtual wallets used to make payments with the help of a mobile or a computer device. This isakin to holding the personal, physical wallet under one head. Herein, the account details of a user linked to the
wallet to bring in ease of mapping of a user’s personal information. It comes with security features like passwordauthentication, KYC check, etc.

Advantages of E­wallets

  • E­wallets do not require you to key in precise details like CVV, the expiry date of the card, mobile number,etc. With these added security features, payment fraud reduced.
  • The user interface of E­wallets is easy to navigate. You won’t experience the hassle of keying in personal details for payment.
  • In other words, the preloaded data facilitate easy payments. As a result, payment processing takes place in a quick and hassle­free manner.
  • Data secrecy happens through the wallet to a wallet or the bank to bank transactions. Hence, this complies with the data security clause of government organizations.
  • On a different plane, e­wallets come with financial incentives and offers. Going ahead, this provides a good return on investments on payment processing.

Disadvantages of E­wallets

  • While e­wallet is changing the face of payments, it is not affordable due to the lack of internet and mobile connectivity.
  • Besides, e­wallet set up requires costly investments in the form of software and hardware.

2. Digital payment using Contactless card payments

This digital payment mode makes use of near field communication (NFC) or Radio Frequency (RFID) technology to facilitate card cum mobile payments. It includes credit/debit cards, smart cards, etc.

On the one hand, Radiofrequency technology involves the use of electronic fields to store data in the form of tags. The tags scanned during a transaction results in payments. Similarly, Near field communication technique makes use of magnetic fields to bring in an end to end transaction connectivity. Some of the key contactless payment providers include Wirecard, SecureKey Technologies, Tyfone, Dynamics, etc.

Advantages of Contactless card payments

  • It brings in fast payment transaction and settlement. Also, NFC avoids the waiting time associated with contact card payments.
  • Due to the inbuilt data encryption, there is an added level of security.
  • It brings in the room for prospective innovation.

Disadvantages of Contactless card payments

  • The cards are propense malware attacks. So, this brings in a security risk.
  • Being an advanced payment mode, the payment option is costly which everyone cannot afford.
  • Since it is an advanced technology, very few merchants use this technology.

3. Digital payment using Payment Cards

This digital payment mode deals with electronic money transfers via cards like debit, credit, smart, etc. Besides,the cards are electronically linked to a customer’s bank accounts. The card authentication takes place with the help
of PIN, CVV, etc. Also, these cards are used at ATMs, POS machines and online payment platforms. The subsequent usage charges are very low.

The technologies associated with the cards are magnetic strip technology, embossing, and smart card technology. In a magnetic strip card, card data stored in the magnetic strip is read by swiping it. In a smart card, hologram and ICs bring about counterfeit prevention.

Advantages of Payment cards

  • Easy and convenient transactions by avoiding physical cash. Herein, transactions take place conveniently by using the inbuilt data present in the cards.
  • Payment cards have inbuilt payment tracking. With the credit history tracked, it keeps a check on taxation issues.
  • Besides, the cards come with offers as incentives for online payments. Hence, this creates a favorable payment environment in the long run.

Disadvantages of Payment cards

  • Payment cards create a culture of debt accumulation. For example, with credit card purchases the repayment happens with the added interest rate.
  • Also, the increasing debit/credit card frauds compromise with the precious personal data of users.

In a nutshell, choose the payment platform which best suits your business requirements. While E­wallets are common amongst small e­commerce players, a contactless card is the upcoming payment trend. Besides,
debit/credit cards support a variety of customer base. Hence, digital payment modes are fast changing the face of payments across the world.

For more payment blogs, click http://blog.sabpaisa.in Learn more about SabPaisa here:https://sabpaisa.in.

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Financial intermediary Hybrid payment gateway payment gateway

Top Seven Payment Gateways Of India – A Payment Gateway List

Top payment gateway list decoded

Have you thought of rolling out a dream venture? As a result, did you choose the right payment gateway that will drive your dream enterprise? Notably, the available payment gateway list is wide and varied.

In a world of distinct customer base, the needs and requirements vary. So, one needs to be careful while choosing the right payment gateway. For example, the selection depends on several factors like interface, security,  maintenance charges,  customer support, etc.

The below-mentioned payment gateway list makes your selection faster, though. However, the rankings do not represent my personal opinion in any way.

1. CCAvenue

Checkout page of CCAvenue Payment gateway
Card and Net payment options

CCAvenue has a range of payment options. Overall, its efficiency is seen in terms of pricing, quality of sales, customer support, etc.

Features of the number one in the payment gateway list are:

(a) Payment gateway integration

CCAvenue offers a platform to process merchant transactions through credit or debit cards.

(b) Credit card processing options

CCAvenue accepts six credit cards like Visa, MasterCard, American Express, JCB, Diners Club, and EZE Click.

(c) Interface support

CCAvenue offers two interfaces: variable amount interface and shopping cart interface.

Variable amount interface works well for shopping cart developed scenario. On the other hand, the shopping cart interface helps in cart building.

(d) Currency support

CCAvenue facilitates transactions in 27 currencies across the world.

(e) Storage mechanism

The Safe card storage vault mechanism easily handles merchant data.

(f) Customer support

Round the clock customer service through call, email, and webchat.

Summary of CCAvenue features:

  • Payment gateway integration
  • Credit card processing options
  • Multiple interface support
  • Currency support in 27 currencies
  • Storage mechanism
  • 24/7 customer support

For more information, click on https://www.ccavenue.com/

2. InstaMojo

Dashboard of Instamojo payment gateway
Access the payment links and product store

Instamojo is a niche payment gateway in the e-commerce sector. Hence, Instamojo has made a significant mark among customers.

Features of the number two in the payment gateway list are:

(a) Unrestricted setup

Instamojo comes with no setup fees. Notably, the typical selling time ranges between 10-15 minutes post the setup.

(a) Secure payment services via unique product links.

The merchants have the option to create and distribute unique product links. Significantly, the links have an inbuilt security feature.

(b) User-friendly interface

There is an option to use the UPI interface. Notably, this brings in two-way transaction initiation at the payer as well as the payee level.

(c) Business tools

Instamojo comes with inbuilt tools for the use of customers.

(d) Payment gateway transaction

The transaction fees are 2 %. The settlement time is less than three working days.

(e) Customer service

The unique dispute resolution center is in charge of customer support. Most importantly, query handling is in the form of cases with unique IDs.

Summary of Instamojo features:

  • Unrestricted commencing setup
  • Secure payment services via unique product links
  • User-friendly interface
  • Useful business tools
  • Meager transaction fee
  • Unfailing customer service

For more information, click on https://www.instamojo.com/

3. PayPal

Login details of PayPal payment gateway
Easy login with your email id and password

PayPal is another popular payment gateway in the world. Principally, it has a presence in more than 200 countries with a 170 million customer base. Also, it supports over 100 currencies.

Majorly, PayPal is fit for businesses with a large international client base.

Features of the number three in the payment gateway list are:

(a) Payment support

PayPal doesn’t support Indian Rupee. Transactions occur in an international currency. Hence, Indian merchants prefer PayPal for inward transactions only.

(b) Multiple currency support

With the multiple currency feature, payment takes place in different currencies. Significantly, the balance is transformable from one currency to another.

© Secure payment services

PayPal comes with security features like fraud detection, buyer authentication, and exorbitant billing. PayPal’s Buyer protection ensures reimbursement of failed transactions.

(d) Simple documentation process

The documentation process consists of four simple steps of verifying through PAN card, email ID and Bank Account.

(e) Settlement process

A payment settlement takes place within a day. Most importantly, the auto-withdrawal feature has a minimum turnaround time.

Additionally, payment capture happens through Express checkout and Manage Express checkout features.

Summary of PayPal features:

  • No Indian rupee support
  • Multiple currency support
  • Secure payment services
  • Simple documentation process
  • Quick settlement process

For more information, click on https://www.paypal.com/

4. SabPaisa

Online App of SabPaisa payment gateway
Easy search of clients on the SabPaisa App.

Traditional payment gateway systems come with few limitations. Since they majorly work on online platforms, there are constraints for distant stakeholders. Therefore, SabPaisa aims to create a hybrid platform (online+ e-offline) for payment gateway transactions.

Established in 2016, Sabpaisa’s growth has been remarkable. SabPaisa caters to a range of clients like Allahabad Bank, Bank of India, Magic bricks, Vijaya Bank, Dena Bank, Delhi Jal Board, Press Council of India, UP Government, etc. Therefore, it has found acceptance among 500 trustworthy clients and 3 million customers across the country.

The features of the number four in the payment gateway list are:

(a) Hybrid payment gateway integration system

The innovative hybrid payment platform serves the needs of different customers.

Firstly, online payments via card and net banking are supported. Secondly, an offline payment option is available via cash and subscription option. Incidentally, SabPaisa is the first payment gateway in the world to introduce the hybrid payment system.

Also, SabPaisa supports seven currencies like the Australian dollar, Canadian dollar, Euro, British pounds, INR, New Zealand dollars and US Dollars.

(b) Mansha AI

Artificial intelligence helps in transforming voice or image input into text format. Overall, clients get real-time reliable support.

(c) Taylor -made Sab Paisa Qwik forms

SabPaisa offers a customizable online form builder based on the needs of different clients. Firstly, the database is captured for new users. Secondly, registered users make use of LinkPaisa to make payment.

(d) Dedicated application for clients – SabPaisa App

SabPaisa has client focussed application. Hence, every new client is given a unique transaction ID.

(e) Authentic customer support

SabPaisa offers dedicated customer support through channels like; email, voice message, as well as chat messages. Further, Mansha AI brings an innovative way of customer query handling.

Summary of SabPaisa features:

  • Hybrid payment gateway integration system
  • Mansha AI
  • Customized SabPaisa Qwik forms
  • Dedicated SabPaisa App
  • Innovative customer support

For more information, click on https://sabpaisa.in/

5. Paytm

Promocode for Paytm payment gateway
Easy application of promo code

Paytm has emerged as a predominant payment gateway post demonetization of 2016. Most importantly, Paytm’s business model has emerged as a replicable model for many financial enterprises.

Paytm Cash wallet facility has enhanced its consumer base. Due to its QR based system, Paytm continues to be the choice for small businesses.

The features of the number five in the payment gateway list are:

(a) Setup

It gives a simple application that is very straightforward to set up and start operation straightaway. Hence, it is summarily adaptable on almost all types of smartphones.

(b) Maintenance

Paytm comes with no maintenance charges. Hence, it is convenient for small businesses like start-ups and brick and mortar stores.

(c) Payment Modes

Paytm supports domestic credit and debit cards. As transactions take place primarily in Indian currency, there is no international credit card processing support. Also, there is a Netbanking facility for about fifty banks.

(d) Payment gateway charges

Paytm doesn’t charge any transaction fees. Overall, Goods and Services Tax (GST) of 18% is charged on Paytm transacted materials and services. Significantly, this helps in enhancing government revenue generation.

Initially, the first settlement happens within 4-5 days. Going ahead, settlements take place on a one-day post-transaction date.

(e) Customer support

Voice-Enabled customer support provision 24/7 throughout the week.

Summary of Paytm features:

  • Convenient setup
  • No maintenance charges
  • Multiple payment modes
  • No payment gateway charges
  • 24/7 customer support

For more information, click on https://paytm.com/

6. Razorpay

By facilitating collateral-free loans and instant settlements, Razorpay brings in a wide range of services.

The features of the number six in the payment gateway list are:

a) Smart collect

The reconciliation process is made easy with the option for automatic incoming payment notification. Multiple payment modes like NEFT, RTGS, IMPS  are supported.

b)Subscriptions

Enjoy subscription plans with the automated recurring options available in the platform.

c)Payment pages

With the customized payment pages, payments take place in a hassle-free manner.

d)Razorpay capital

Cash crunch for your business is a thing of the past with the Razorpay capital. Be it loans or instant settlements, Razorpay capital provides it all.

e)Payment route

The custom APIs facilitate different payment routes like split payments, vendor payouts, etc.

Summary of Razorpay features:

  • Easy reconciliation with Smart collect
  • Varied subscription plans
  • Custom payment pages
  • Razorpay capital for business funding
  • API enabled custom payment routes

For more information, click on https://razorpay.com/ 

7. PayU

Do not worry if you have an unregistered business, PayU is here to help your business flourish. With the simplified user interface, the payment platform is adaptable for both individuals and businesses alike.

The features of the number seven in the payment gateway list are:

a)Simple setup

The presence of the account activation process makes it possible to accept payments within five minutes of the initial setup.

b)Payment modes

With a wide range of payment modes like Net banking, wallets, cards, and UPI, transactions proceed in a smooth and seamless manner.

c)Payment management

The presence of a dynamic dashboard eases both transaction and account management functionality. Further, the users are given a real-time alert of transactions via push notification.

d)Payment integration

There is ease of operability through numerous integration options. For example, an additional feature addition happens through the change of code. Also, customers could avail of real-time updates via the auto-update feature.

Summary of PayU features:

  • Simple initial setup
  • Numerous payment modes
  • Dynamic payment management
  • Flexible payment integration

For more information, click on https://www.payumoney.com

Prospects of Payment Gateway System in India

The future of the payment gateway system in India looks very promising.  The success of payment gateways in India depends on two factors: (1)   gateway interface and (2) user satisfaction.

While there are common features that unite the payment gateways, but there are certain features unique to each of them. For example,  CCAvenue comes with a  safe card storage vault mechanism that brings in additional security. On the other hand, security is assured through product links on Instamojo.  Further, Razorpay Capital makes loan approval and settlement easy and affordable.

Similarly, SabPaisa’s hybrid payment system works well for both big and small businesses. Be it a small brick and mortar shop or an MNC, SabPaisa’s online payment systems will capture the most minute transaction. Besides, SabPaisa’s Mansha AI runs on artificial intelligence which clearly guides customers within the practical scenario.

Going ahead, there is no dearth of payment gateway options for businesses at present. The suitable payment gateway selection is business-centric as well as customer-centric. A wise selection based on cost, efficiency, and effectiveness is the need of the hour.