TimesofMoney has launched payment gateway service, DirecPay that enables merchants to enable ecommerce transaction on their site.
DirecPay has partnered with banks for netbanking facility (withdrawal). TimesofMoney also has wallet365 , a consumer facing service, but not sure how much traction it received as the service was essentially trying to build the entire ecosystem around itself (merchants had to implement the service in their e-store).
Other players in payment gateway business are: ccavenue,transecute, and banks like hdfc.
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Aside, a reader wants inputs on online payment gateways.