PayUPaisa Announces ‘ZERO Transaction Charges’ on Online Payments

PayupaisaFollowing the launch of Flipkart’s payment solution PayZippy, competing payment solutions provider PayU has cut prices for PayUPaisa, an online payment solutions provider.

On Monday, the company announced that it will waive off transaction discount rate (TDR), a small charge every merchant has to pay on each transaction.

Earlier, it used to charge 3.2% of the transaction combined with additional Rs 3 on every transaction. The waiver is effective from July 1 and will last until September 30, the company said.

Merchants who use services of an online payment gateway are charged 3-7% transaction fee to cover costs associated with transaction processing. For instance, assuming a 5% TDR, if a merchant sells a product worth Rs 100, he will be  paid Rs 95.

Usually, payment gateways with higher setup fee charge lower transaction fees and vice versa. Banks which provide their own payment gateways have low TDR as well as the low setup fees but they are expensive unless one has large volumes.

It will be interesting to watch that how other leading payment gateways will respond to it as with this Zero Transaction offer and No Setup Fees , PayUPaisa has became the one of its kind payment gateway provider in India.

Recommended Read: Compared: Payment Gateways in India

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