As ecommerce market flourishes in India, there is definitely a need for better payment gateways and PayU, a payment gateway product from Naspers MIH was quietly launched in India (in 2011) and here is an exclusive interview with PayU India’s country head, Nitin Gupta on the journey so far and the product roadmap.
There are 4 main reasons why we are different from other aggregators and gateways:
A. Highest conversion rate in the market. The conversion or success rates are anything from 12-18% higher when compared to a single gateway and about 7-8% when compared to multiple gateways (large clients typically use anything from 2-7 different payment gateways). The conversion rates are higher because of our superior technology, our wrapper algorithms, our innovative techniques to capture unsuccessful transactions like intelligent retry/recommendation framework and dynamic switching, our analytics which gives insights into user behavior and the user’s intent to pay, complete transparency into both successful and unsuccessful transactions, our etc.
B. Significantly improved user experience. We do variety of things to improve the end user experience. First of all, the payment page is very modern and collects only those details that are required. The merchant has immense control over the payment page – they can change the entire CSS if they know programming or they can change the fonts/colors/borders/ of each and very section of this page using a DIY (do it yourself) tool. It is like WYSIWYG sandbox environment where the changes can be made live when the merchant is confident.
We offer a card vault allowing users to save card details if they want. This offers a almost 1-click check out experience to the end customer. This is available in both hosted and non-hosted model. We are one of they very few companies in the world (and the first one in India) to use hardware for encryption and storage of the card data.
We help our merchants get PCI DSS compliance easily using our libraries (work scope is reduced by ~90% and costs by ~80%). this allows the merchant to collect card details on their own website.
C. Reduction in accounting costs. We offer auto capture of transactions (for most competitors, user has to login and manually accept all orders). The settlement for card transactions mostly is achieved in T+1 i.e. next working day. A billing tab is available in the merchant panel where all details of settlement is visible which can be further broken down transaction wise.
D. Significantly better customer service. Our aim is to resolve immediately. Customer care achieves that most of the time. Most of the queries which have a pattern are solved through technology so that customer care sees issues which cannot be solved through technology.
Pi: How many customers do you have at this point?
As of today morning, we have signed agreements with 571 merchants. Some of the bigger customers who are live include MeritNation.com, Zomato.com, YepMe.com, LensKart.com, Fetise.com, FnP, UrbanTouch etc.
Pi: Reliability of PGs has always been an issue. How do you solve this?
Several things – Dynamic switching is one of them. We give more than one payment gateway and switch transactions in real time taking a decision for every transaction on which is the best gateway to use. We also have many other innovative techniques which have been explained above in the point “improved success rates”.
Pi: Tell us more about PayU Vault?
Basically, we store card detail securely (using special hardware which encrypts it). A token is shared with the merchant corresponding to this card number as a result of which their security requirements are removed. Even if this token is compromised, no body can know the actual card details because we don’t event reveal it back to the end user when he/she comes back. they are shown only part of the details (last 4 digits of the card number) .
Further more – We only store card number and expiry. The CVV and password still needs to be entered. So a transaction cannot be completed without the actual user approving it. Neat right?
5. Future plans?
We have recently launched our Anti Fraud solution in the market. As of today, the frauds happen due to phishing i.e. the user’s password getting compromised. This is mostly on NetBanking and Debitcard and is done on mobile recharge websites, travel websites etc. We have launched a solution which tackles this problem. And this solution is available at a price which is a fraction of any such solution currently available globally.
If you are an ecommerce startup, do give PayU a spin and share your feedback/suggestions.