A “whois” search of Paykrypt.com(link), Paykrypt.net (link), Paycrypt.com and Paycrypt.net domain names to find out who owns the domain, tells us that the domains were registered by Sachin Bansal, the chief executive officer of Flipkart in December.
Flipkart, which raised more than $300 million of capital in 4 rounds has gained government approval to set up two new companies in India named Flipkart Marketplace Pvt Ltd and Flipkart Payment Gateway Services Pvt Ltd in August and September 2012 respectively.
Besides registering Paykrypt and Paycrypt domain names, Flipkart also bought Flipkartmall.com and fkinternal.com in September last year. Fkinternal looks to be for internal use for the Nasper funded company, however we are not sure about its strategies behind Flipkartmall domain name.
Last month, Flipkart launched its marketplace– with 50 sellers on board selling books, media, and consumer electronics categories.
We think, the payment service will be mostly used by Flipkart and its merchants. However, it remains to be seen if it will be provided as a standalone option. Flipkart will surely find a lot of buyers as existing payment gateways have come under a lot of flak for their quality of service.
Why Payment Gateway makes sense to Flipkart?
From what we know, Flipkart is breaking even on per unit basis and the company now wants to control the entire infrastructure or backend services on its own to have a control on end to end services, resulting in improved margins (recently increased minimum free shipping from Rs. 300 to 500 in order to improve the margin).
Given the average payment gateway failure in India (more than 25%), are Ecommerce better off building their own infrastructure?
[Hat tip: Siddharth Jaiswal]
PS: Paycrypt is a very interesting choice of name. Bitcoins?