Top 10 Payment Gateway options in India for custom eCommerce service provider

What is a payment gateway Payment gateways are intermediary medium to transit key information betwee

 

What is a payment gateway

Payment gateways are intermediary medium to transit key information between payment portals like websites, mobile apps, devices etc. and the front end processor / Bank. This also authorizes credit card or direct payments processing for online business, online retailers, bricks and clicks, traditional brick and mortal. Custom eCommerce service providers in India give very high importance to safe and easy payment processing as a key factor for online shops and other portals.

How payment gateways work

When an order is placed by customer on online portal or eCommerce website, the payment gateway performs few tasks to finalize and complete the transaction.

  • Encryption: The data is encrypted by browser and sent between it and the vendor’s web server. The payment gateway sends the encrypted transaction data to payment processor utilized by the vendor’s acquiring bank.
  • Authorization Request: The payment processor sends the encrypted data to a card association. The credit card’s issuing bank views the request and it approves or denies the authorization request.
  • Filling the Order: The processor forwards the response to the merchant and consumer to the payment gateway. One payment gateway receives the response, it transmits it to the website/interface to the process the payment/transaction.

Though this process seems lengthy but it is performed within few seconds at most.  Let us discuss few payment gateway options popular in India with their characteristics.

Top 10 payment gateways in India

 

1) InstaMojo Payment Gateway 

InstaMojo is an Indian that aims at selling digital goods and online payment collection. This is one of the easiest and popular payment gateway in India.

Holding Company InstaMojo
Head quarter Bangalore, India; Mountain View, California
Established 2012
Annual maintenance Charge ZERO
Transaction Fee per Transaction Flat fee @ 1.99% + Rs 0.27
International Payment / Credit card Support Not supported
Multi-Currency Support Not supported. Only INR.
Withdrawal Fees Zero
Settlement days 3 days in your connected Bank account.
Mobile App Integration Not available as of now.
Certified none

 

2) EBS Payment Gateway

EBS or E-Billing Solutions is the first Indian merchant account provider to achieve the PCI DSS 3.0 standards of compliance.

Holding Company EBS
Head quarter Mumbai
Established 2005
Annual maintenance Charge Rs 2400 flat applicable every year
Transaction Fee per Transaction Variable charges apply depending on the package you select
International Payment / Credit card Support Visa, Master Card, American Express, JCB & Diners cards issued around the world.
Multi-Currency Support 11 major foreign currencies (INR ,USD ,GBP ,Eur ,AED ,QAR …..)
Withdrawal Fees Zero
Settlement days Settlement takes place within 2-3 days
Mobile App Integration Windows, iOS and Andriod.
Certified PCI DSS 3.0 and ISO 27001- 2013

 

3) CCAvenue Payment Gateway

CCAvenue is one of the oldest payment gateways in India. CCAvenue supports almost every bank and payment option out there. It is reliable, safe and used by high volume eCommerce websites like Snapdeal.

Holding Company CCAvenue
Head quarter Mumbai, India
Established 2001
Annual maintenance Charge zero
Transaction Fee per Transaction From 1.99% + Rs.3 to 2.99% + Rs.3
International Payment / Credit card Support Supported
Multi-Currency Support 27 foreign currencies.
Withdrawal Fees Free, Domestic Friday and International Tuesday
Settlement days Payments on a weekly basis for all amounts over & above of Rs. 1000, which is the minimum amount required to be kept.
Mobile App Integration Windows, iOS and Andriod.
Certified PCI DSS and ISO / IEC 27001 : 2013

 

4) PayPal Payment Gateway

PayPal is a Global payment platform available in 200+ countries across the world. PayPal claims to have processed 4 billion payments in 2014.

Holding Company PayPal
Head quarter California, United States
Established 1998
Annual maintenance Charge zero
Transaction Fee per Transaction 4.4% + US$0.30 + Currency conversions charges
International Payment / Credit card Support supported
Multi-Currency Support support over 100 currency globally
Withdrawal Fees Zero
Settlement days auto-withdrawn to your local bank account on a daily basis.
Mobile App Integration iOS and Android.
Certified -

 

5) Citrus Payment Gateway

Citrus also provides wallet service to the end users. Citrus is being used by over 1500 merchants inclusive of Airtel, PVR, Etihad Airways, GoAir, Tata, and Lenskart & Delhi Metro among others.

Holding Company Citrus
Head quarter Mumbai, India
Established 2011
Annual maintenance Charge Rs 4900 + Taxes and additional fee of Rs 2800 for international payments
Transaction Fee per Transaction Visa, MasterCard, Maestro and domestic debit cards a Flat fee @ 1.99% + Rs 3; For American Express and International payments fee is 3%
International Payment / Credit card Support Visa, MasterCard, Maestro, American Express cards are accepted
Multi-Currency Support Only US$ is supported.
Withdrawal Fees Zero
Settlement days Transaction+2 day is the settlement cycle
Mobile App Integration Windows, iOS and Android
Certified -

 

6) PayUbiz Payment Gateway

PayUbiz is a one of the most popular payment gateway solution provider used by many eCommerce solution providers. PayUbiz is used by large enterprises such as Snapdeal, Jabong, Bookmyshow, Ola, Cleartrip, Redbus, GoIbibo, Zomato etc.

Holding Company PayUbiz
Head quarter Delhi,India
Established 2011
Annual maintenance Charge Variable charges apply depending on the package you select
Transaction Fee per Transaction Variable charges apply depending on the package you select
International Payment / Credit card Support Not supported.
Multi-Currency Support not available.
Withdrawal Fees Zero
Settlement days Transaction+2 day is the settlement cycle
Mobile App Integration Windows, iOS and Android
Certified -

 

7) Atom Paynet Payment Gateway

Atom is promoted by FT Group and their major client base comprises of education, government services and travel and tourism.

Holding Company Atom
Head quarter Mumbai, India.
Established 2006
Annual maintenance Charge Generally waived off for first year, however second year onwards you have to pay Rs 2400.
Transaction Fee per Transaction VCredit Cards: 2.1% ,Debit: less then Rs 2000 it is 0.75% ,more than Rs 2000 it is 1%
International Payment / Credit card Support Not supported
Multi-Currency Support Not Supported
Withdrawal Fees Zero
Settlement days Transaction+2 day is the settlement cycle
Mobile App Integration Only Android as of now.
Certified PCIDSS & PA-DSS

 

8) ZaakPay Payment Gateway

It offers both web and mobile payment options and has facility for customers to customize their package based on the expected volume per month. It offers a unique Transaction day+1 settlement clearing process.

Holding Company ZaakPay
Head quarter New Delhi, India
Established 2010
Annual maintenance Charge Custom, negotiable
Transaction Fee per Transaction Custom, negotiable
International Payment / Credit card Support All Indian & International MasterCard, VISA, Discover & Diner’s cards acceptable
Multi-Currency Support Not Supported
Withdrawal Fees Zero
Settlement days Transaction+2 day is the settlement cycle
Mobile App Integration Windows, iOS and Android.
Certified -

 

9) DirecPay Payment Gateway

DirecPay is a good payment gateway provider for large number of online business as it allows businesses to focus on sales and payment processing to them. It offers affordable plans.

Holding Company DirecPay
Head quarter -
Established -
Annual maintenance Charge Zero
Transaction Fee per Transaction Variable transaction fee apply
International Payment / Credit card Support Supported with an additional refundable security deposit of Rs 30000
Multi-Currency Support Not Supported
Withdrawal Fees Zero
Settlement days Transaction+2 day is the settlement cycle
Mobile App Integration Windows, iOS and Android.
Certified PCI/DSS

 

10) Emvantage Payment Gateway

EMVANTAGE is very popular payment gateway in India and boasts of great transaction success rates in India specifically. It offers many payment options and allows to use prepaid cards like Rupay etc.

Holding Company Emvantage
Head quarter Noida, India
Established -
Annual maintenance Charge Variable charges apply depending on the package
Transaction Fee per Transaction Variable charges apply depending on the package
International Payment / Credit card Support Not Supported
Multi-Currency Support Not Supported
Withdrawal Fees Zero
Settlement days Transaction+2 day is the settlement cycle
Mobile App Integration Windows, iOS and Android.
Certified PCI/DSS

 

These are the few payment gateway options for custom eCommerce Service providers, software companies and others to consider. This is not exhaustive list but indicative and unordered list.

Blockchain – A forward step to secure transaction

What is Blockchain Security is paramount in financial transactions. Software outsourcing companies h

What is Blockchain

Security is paramount in financial transactions. Software outsourcing companies have witnessed that cyber breaches are advancing at higher rate than technology advancements. Blockchain is seen as a next big thing for safe and secured financial transactions. Blockchain is known as a backbone technology of bitcoin, a digital currency revolution. Blockchain allows making and verifying transactions on network instantaneously without any central authority.

Blockchain is a data structure that maintains growing list of records called blocks and each block contains a link to previous block similar to Linked-list and a timestamp thus creating a digital ledger. Blocks are secured from revision and tampering.  Cryptography is used to allow each participant on the network for ledger manipulation in a secured way without any help from central authority.

A blockchain consists of blocks that hold batches of valid transactions. Each block includes the hash of the prior block in the blockchain, linking the two.  Following diagram is an overview of underlining technology and architecture.

 

 

 

Blockchain not only provides a way for secure transaction but also makes it easy to recover corrupt data as every node inside a blockchain has copy of data/block. Data loss chances are also minimal as every node has copy of data. Blockchain is a technology that can be integrated into multiple areas. Some of areas where Blockchain is useful are payment system and digital currency, cryptocurrency, permission distribution like distributed voting system and share power of voting system.

Security feature in blockchain

There is no centralized “official” block copy that exists. If any person wants to change its own database copy, it will be reflected until it is verified by verifier. This reduces the chances of hacking or security breaches.  

Blockchain uses public key and private for encryption. Private key are known only to user and it is not stored anywhere.  During transaction, only scriptpubkey is shared. Scriptpubkey contains a public key and network address in encrypted format. So sender does not know about public key and network address making it highly secured way of transaction compared to other technologies. Following diagram depicts the transaction flow.

                                                      

 

Workflow Of Blockchain

Let us understand how blockchain technology works with an example. Person A wants to send some bitcoin (digital currency) to person B.  Person A requires wallet account and also should know digital address of Person B. Following are the steps involved in this transaction.

 

 

 

Step 1: Person A initiates a transaction and includes digital signature inside transaction

Step 2: Transaction is sent to miner. Miner is one type of verifier that verifies all transaction of connected nodes

Step 3: Miner broadcasts transaction as block to all connected nodes if transaction is valid

Step 4: Node inside network accepts block if all transaction inside it are valid and not already spent. After ownership of block inside network and transaction is transferred into target account inside block is sent to person B

Step 5: Person B gets money (digital currency)

Disadvantages of Blockchain

There is tradeoff for using Blockchain technology. It does offer additional security however one should consider following disadvantages.

  • Blockchain requires more storage space as it stores all transactions.
  • Complete transaction takes more time compared to other technologies as transaction verification process is longer and we are dependent on Miner for verification. On verification by Miner, transaction is broadcast to all node as Block
  • This is comparatively costly technology. Miner charges per transaction for verification

Conclusion

Blockchain technology is gaining popularity among financial institutions as this is highly secured way of doing transactions. Software outsourcing companies in India are experimenting the usage of Blockchain technologies in various ways through various vendors.