UPI 2.0

It is no surprise that UPI has been playing a critical role in encouraging digital payments in the country.

Post demonetisation, UPI-based online payments have soared in the country. According to a report of Inc 42, UPI has seen a massive growth in processing transactions, i.e from 0.93 million to 246 million within a time span of August 2016 to June 2018.

Also, the number of banks actively integrating with UPI has grown from 21 to 110 partner banks.

These are the reasons why UPI becoming the most preferred payment option:

  • Money transfer is possible anytime (24×7×365)

NPCI launched UPI 2.0 in August 2018, which is an updated version of UPI.

Key features of UPI 2.0

Linking of overdraft account : In addition to current and savings accounts, customers can link their overdraft account to UPI. Customers will be able to transact instantly and all benefits associated with overdraft account shall be made available to the users. UPI 2.0 will serve as an additional digital channel to access the overdraft account.

One-time mandate: UPI mandate could be used in a scenario where money is to be transferred later by providing commitment at present.UPI 2.0 mandates are created with one-time block functionality for transactions. Customers can pre-authorize a transaction and pay at a later date.It works seamlessly for merchants as well as for individuals. Mandates can be created and executed instantly. On the date of actual purchase, the amount will be automatically deducted and received by the merchant/individual user.

Invoice in the inbox: According to NPCI, this feature is designed for customers to check the invoice sent by merchant prior to making payment. It will help customers to view and verify the credentials and check whether it has come from the right merchant or not. Customers can pay after verifying the amount and other important details mentioned in the invoice.

Signed intent and QR:This feature is designed for customers to check the authenticity of merchants while scanning QR or quick response code. It notifies the user with information to know whether the merchant is a verified UPI merchant or not. This provides an additional security. Customers will be informed in case the receiver is not secured by way of notifications.

Business cases

With the launch of 2.0, UPI has the potential to digitize the entire ecosystem around the core payment functionality. Financial institutions (FIs) can look at utilizing the enhanced version of UPI and its features for multiple P2M (Person to Merchant) transactions across innovative use cases.High-value products/services will now also become attractive for UPI transactions as the amount has been revised and capped to 2,00,000 INR. Below are few business cases.

Future Scope of UPI 2.0

A report of Boston Consulting Group (BCG) says that between 2021–22 and 2024–25, the role of cash in the payments space will be shrink. The report said that UPI will dominate the payments space with 59% payments transactions. This would be followed by mobile and internet-based payments, which will constitute a fifth of the total number of cash and non-cash transactions.

The report further said that ATM transactions are expected to comprise 5% of total transactions between 2021–22 and 2024–25. It is being reported that the change in the payments landscape is a result of an intention to move towards a ‘cash-less economy’.

UPI 2.0 with its new features has a lot to offer consumers and merchants.From a consumer perspective, the functionality of the application will increase as it widely used nowadays.One could use it to book a taxi, pay for groceries, or purchase equity investments,etc.

In the near future, we at Easebuzz, will be looking forward to provide our merchants all the features that UPI 2.0 provides. We intent to provide our merchants UPI 2.0 as a payment option.

Does Your Business Really need a Payment Gateway Solution?

Globalization has brought the world closer, but it has made it more complex. Gone are the days when payments were all about giving money to the cashier across the counter. Now, we have payment gateway solutions to help us out. Wondering what is a payment gateway and why your business needs it? This article will provide you with all the information you need to know about an online payment gateway. Let’s get started.

What is a payment gateway?

To put it in simple words, a payment gateway offers online payment solutions. Before processing the payment, a payment gateway identifies and verifies the payment method and then accepts the amount paid by the customer. Another important task that a payment gateway performs is that it encrypts sensitive information such as name, CVV and credit card number. All of this results in it being a very safe method of accepting payments.

Today, everyone has brought some product online. It seems very easy, isn’t it? Select the product you like, add it to your cart, make payment and voila! It is at your doorstep. What seems so easy actually involves a lot of processes taking place behind the scenes. Now, what ensures this smooth transfer of payments is a payment gateway. To explain further, it is a merchant service provided by an e-commerce application service provider that authorizes credit cards or direct payments processes for online e-business retailers or traditional brick and mortar retailers.

Now that the concept of a payment gateway is clear, let us focus on why does a merchant need one.

Why does a merchant need a payment gateway?

If you own a business online, you should have a payment gateway. According to Easebuzz mentioned below are the statistics that highlight why you need a payment gateway.

1. 42% of shoppers prefer online payment

2. It is expected that by 2023 the number of users making online payments will rise up to 699.4 million

3. The Digital India campaign resulted in 1.11 Billion digital transactions in January 2018

A payment gateway reduces the frequency of credit card theft and fraud as it encrypts sensitive information.

Now, that you know all you need to know about payment gateways you can go ahead and introduce one to your business that will increase the profitability. There are several factors you need to pay attention to while selecting a payment gateway, and it is advisable you do thorough research before choosing one. Easebuzz is a leading company in Pune that provides best payment gateway for small business. Make sure you visit their website before finalising a payment gateway solution for your business!

Life-cycle of Digital Payments for a Card Payment Gateway

The concept of digital payments was born out of convenience and control for consumers. It is only natural for this concept to be consumer-centric as in all markets the consumer is king. Today we will take a closer look at the complex process of digital transactions in a card payment gateway that make life so easy for us. The gateway is a piece of technology through which several merchants and platforms are able to connect from the website to their customers’ mobile devices.

Verification

Once on the other side of the payment gateway, vendors ensure the transaction and consumer behind the transaction is legitimate. Vendors verify details by matching shipping and card addresses, CVV code, blacklisting for credit card default, and IP address. These checkpoints are essential to protect merchants from unnecessary and avoidable costs.

Involvement of Banks

After all the verifications are made, payment requests are routed to the customer’s issuing bank and the merchant’s acquiring bank. Funds are exchanged between these two parties. The card payment gateway sends the initial transaction request to the merchant’s acquiring bank, in response to which this bank requests a payment from the customer’s bank via the payment gateway. When communicating with the customer’s bank, payment gateways run a series of fraud prevention measures. The message of a declined transaction is relayed by the gateway to the customer through the merchant and all in a matter of microseconds.

Settlements

If things have flowed smoothly till this point, the merchant sends a ‘settlement request’ which is a way of confirming their action of charging the customer’s issuing card.

Bill Splitting

Some payment gateways even have an option to divide funds between sellers and facilitating platforms and maintain individual ledgers to do so.

All digital payments through payment gateways follow this cycle. A card payment gateway that stands apart is one that is reliable, secure, scalable, and offer tech-support. Easebuzz is one such platform that enables quick and easy payments end-to-end for upcoming businesses across India.

Why Do I Need an Online Payment Gateway for My Online Business?

Adoption of digital payment methods chosen over cash or other modes of transactions is on the rise.

Digital finance and payment methods are powerful tools of improving sales and business for e-commerce merchants.

Unfortunately a lot of merchants are unaware of such advantages and only 40% of merchants are aware and benefiting from this facility.

This article breaks down the significance, uses, and suitability of an online payment gateway for potential or existing online retailers. Read further to learn how payment gateways work and how you can choose the right payment gateway for your business.

What is a payment gateway?

An online payment gateway authorizes transactions for e-businesses, online retailers, or traditional brick and mortar stores. It is used to transfer information between a payment portal and an acquiring bank. Payment gateways encode private information such as credit card details, to keep the information transfer between a customer and merchant secure.

How do payment gateways work?

A payment gateway first pulls information from a credit card transaction, encrypts this information, directs this information to the credit card processor, where the transaction is finally approved or declined. This is a seamless process between you and your customer via your shopping cart and a secure connection.

Why should I use a payment gateway?

Payment gateways are vital for keeping online transactions secure. They can be integrated with most websites and shopping carts online, to streamline online credit card processing. A shopping cart is usually used before the payment gateway. This allows customers to choose items they want to purchase and at the checkout, the shopping cart totals the items, adds tax and shipping and collects customer’s shipping and billing information.

How do I choose the best payment gateway?

Here is a checklist to finding the best payment gateway for your e-business:

  1. Budget of payment gateway

  2. Time of accepting payments

  3. Time of receiving revenue from sales

  4. Security of the gateway

  5. Cards accepted

  6. Compatibility with existing integrations

We hope this article was helpful in answering some doubts you may have had around using an online payment gateway.

Expectations from the payment gateways partners

The online payment gateway has now become mainstream for most of the businesses – from chat support, surveys, movie tickets to food catering, e-commerce and many more. According to the report by Google and Boston Consulting Group, the digital payments industry in India is projected to reach $500 Bn by 2020, contributing 15% to India’s GDP.

The main objective of any payment gateway is to authenticate the customer’s credit card, debit card, net-banking details and wallet details securely, and enable the transfer of the funds to pay to the other party online.

This process involves four key steps – collection of the purchased item, authentication of the bank account, an authorization that the payment has been approved, and settlement and validation of the transaction amount in your bank account. Any incorrect process or manual error can create chaos for the buyer as well as for seller.

Online payment gateway should ensure simplicity, security, reliability, availability, and dependability. Merchants need a single solution that enables them to extend reach, allow seamless and timely transaction ensuring safety and security, and the one that build trust. Additionally, the merchant is also concerned about the speed of the transactions during sale or peak hours.

The key barriers to the adoption of payment gateways include the complexity of use, safety and security concerns, fraud or hidden charges involved in the payments process, among others.

The research from Google and BCG also shows that 1 out of 2 non-users haven’t used digital payments because they found the product too complicated to understand and 61% of non-user merchants find it complex to use.

The payment gateway providers need to ensure the ease of use, security and speed are the main features provided to delight the users. Other feature that drives adoption is ease of reaching the customer care for help or support. Customers should not be kept waiting for 24 or 48 hours to get a response to their query.

In Indian market the regulations and laws around payment gateway are still shaping up. It is important for payment gateway India providers to build simplified payments solutions with inevitable features for both buyers as well as purchasers.

The final goal of merchants is to find a cool gateway that backs their business model, product or service by letting them create any payment scenario they want to in the most simple and friendly way. Payment gateway provider in India like EaseBuzz, exceeds customer’s expectations by providing high standards of convenience and security.

How to choose an online payment gateway –questions you should ask

Choosing the right online payment gateway for your business is like choosing a partner for life. It crucial, and it gets difficult to select the one that matches your criteria.

Whether you are selecting a new online payment gateway provider or looking to replace your existing one, there are many questions that you would want to ask for an efficient, flexible product that fits your budget. Let’s look at what are the major concerns that you should raise when finalizing on an online payment gateway.

How easy is the onboarding process? 

Making business go fast is the aim of all entrepreneurs. The valuable time of an entrepreneur should be focused on their products or services, rather than staying busy in the gateway setting up process. For instance, Easebuzz, a payment gateway, provides complete online KYC process where the business can get started with handy PAN card and bank details. Find out a partner that provides quick onboarding.

Are there any value added features other than regular payment options?

Besides ensuring smooth transactions, payment gateways should provide other value-added services. From attracting customers to managing reports, event tracking, email and SMS marketing, referral schemes, quick pay options even without a website – there are numerous services that your provider can offer you and make your online operations easier.

How secure is the payment gateway?

Today, online businesses who accept digital payments face the risk of frauds, which can hurt the business badly. It’s important to go with a payment provider that offers secure transactions. This means it should at least conform to the PCI Data Security Standard (DSS) and has an end-to-end SSL encryption for all transactions.

How good is their customer support?

You’re dealing with monetary transactions and daily setting of funds, and so your solution provider should be accessible 24/7. You definitely need to know where to ask for support, and that you should not be waiting 24 or 48 hours to get their reply. Good payment gateways like Easebuzz will assign you an account manager that will be there for you when you need him.

Is the pricing transparent?  

Ask the provider to list down all the costs you might come across whilst using their service to avoid horrid surprises of paying double the actual price.

Your choice of online payment gateways in India can impact the overall experience that you promise your customers on the website, so think through consciously before choosing one. 

Blockchain And Its Impact On The Payment Industry

Today everyone is talking about blockchain technology and a number of organisations are racing to harness the power of its many applications. Let us understand what this means.

A blockchain is a distributed ledger of transactions that are recorded chronologically. Blocks that make up a blockchain contain data related to the most recent transaction and a hashed reference to the previous block.

This hashed reference creates a link between all the blocks in the chain, and as no one technically ‘owns’ a blockchain, it makes it impossible for any single participant to corrupt it. This data is stored across the blockchain network which gives it its inherent security.

Block chains can benefit international payments majorly due to the positive impact on speed, cost and security.

A payment gateway based on block-chain would enable payments to be sent anywhere in a period of 15 to 20 seconds. This is notably faster than routing payments through traditional banking routes which could take up to 3 days.

Using block-chain ecosystems as a base, payments are made more secure and less prone to attack compared to a traditional online payment gateway.

Security is a fundamental element that will drive mainstream acceptance of block chain into the online payment industry.

Incorporating block-chain into a traditional payment gateway is not only beneficial to merchants with respect to decentralisation but also for consumers as their confidence in online platforms will be imbued by this core security association with block-chains.

As of now, this ability to make business payments is an option restricted only to a few technology firms. Currently it is the financial service sector that has tapped into the potential of block-chain to change the way it functions.

Ultimately, businesses that want to streamline processes and make payments easy, secure and quicker should look to adopt block-chain technology.

Payment gateways in India are also looking into block-chain technology to further enhance the services they offer to their merchants.

The future of online payments demands adoption of block-chain in all businesses by seeking out payment service providers that will be able to help with access to block-chain.
This would be true for high-impact sectors such as multi currency payments or international settlements where fewer traditional online payment gateways are present.

Easebuzz – The Easy solution to payments!

What comes to your mind when you think of “Payments”?

– Is it cash or Plastic money?

– Is it the expenditure or the earnings?

Do you think of a hassle-free experience when it comes to payments or do you consider it as a tedious task?

No matter what your thoughts are, payments will always be an integral part of your life. Right from the very beginning of time, people have found ways to make payments. Starting with the Barter system, going on to paying in livestock to crude metal coins and gold, the evolution of payments does seem to amaze one and all. From cash to plastic money, and now mobile payments, this industry seems to be adapting to the technology really quickly. The first ever documented online purchase was made in 1994 to purchase a pepperoni pizza with mushrooms and extra cheese from Pizza Hut. Following this, online payment took the world by storm, providing a smooth experience to the users.

In today’s world, cash seems to be a vanishing commodity. This era is dominated by online payment solutions like online payment gateway, link solutions and online web stores which ease the life of the people and provide them with the freedom of not having to carry the cash around and worrying about the same. Today, everything is a just a click away, thanks to online payments! The petty bickering over change is now a long foregone thing; a simple swipe of the card or entering the OTP serves the purpose.

India, being on the verge of transition to a cashless and digital economy, has seen the growth of many payment gateways over the years. These online payment gateways are now the rulers in the payment industry. With the best possible features, they also provide 24*7 support, quick and on-the-go payment options. Easebuzz is one such platform – the rising star of the payment gateways in India with over 15,000+ merchants on board.

With all the requisite security concerns in place (PCI-DSS Compliance, 128 bit SSL), Easebuzz does not require the customers to create an account to make the payment. Neither does it store any card details. For the merchants, it has a quick on-boarding process (2 minutes) with just the requirement of the KYC documents and the bank details. You will never find a simpler process for any Payment gateways in India.

Hoping to see you joining the Easebuzz family soon!