Infotech Lead Asia: PayU India is targeting 1 million sellers and 20 million buyers for its new online payment solution – PayUPaisa – by 2016.
The online payment solution enables individuals or businesses to go online in few minutes and start collecting online payments.
Though there will be no upfront payment, online payments will attract certain transaction charges that vary.
The product provides selling tools like a free webstore, free storefront and email invoicing.
Small businesses can avoid making huge investments for setting up payment gateway. They can also avoid spending precious time on creating e-commerce portals. SMBs can sell their products using PayUPaisa platform.
However, if they need to scale up, they need to invest in new tools that can be provided by PayU India. This means the present solution is not scalable for ambitious business owners.
At present, PayUPaisa platform does not support mobile transactions. This will be a major setback for online buyers and sellers who are going mobile in India.
Also, businesses or individuals cannot make / receive overseas payments / transactions
The main benefit is the introduction of online documentation for buyers.
Despite all challenges, Nitin Gupta, co-founder and CEO at PayU India, is confident of achieving its targets
“For a country like ours which has a population of over 1.2 billion out of which more than 300 Million have a bank account, and an internet penetration which exceeds 150 million; only fewer than 7 million people actively buying online is a miniscule number,” Gupta says.
“What is even more disappointing is that with over 30 Million SMEs and around 5 Million freelancers in India, fewer than 10,000 people sell online today. PayUPaisa was born out of these needs and intends to solve the above problems,” he added.
Founded in October 2011, PayU services more than 4000 merchants as on date. Its merchant clientele includes names like Goibibo, Snapdeal, Bookmyshow, Jabong, Ferns n Petals, Freecharge, Zomato, Tradus, Rechargeitnow and Groupon India.