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Digital payments in India has witnessed exponential growth and with the players like Google Pay, Amazon Pay, Paytm, PhonePe, JioPay, and government-backed BHIM, more and more businesses are switching towards a digital payment collection option. Here is how you can collect online payment for your goods and or services:

The Present Scenario of Online Payments

Online payments have witnessed exponential growth in recent times in India. There have been multiple factors responsible for this surge. Demonetization coupled with extensive penetration of smartphones and cheap data plans has made it possible for the e-wallets and payment companies to penetrate in the most remote areas of India. Today digital wallets are being accepted at grocery shops, even vegetable vendors in many tier-1 cities.

Top Online Payment Gateway Providers in India

Today India is one of the most competitive digital payment market in the world and consumers are the one getting all the benefits from the fierce competition. Some of the widely used payment apps, e-wallets include Softbank backed Paytm, Amazon Pay, Google Pay, Phone Pe, Whatsapp Payment, and JioPay. These companies together represeant some of the biggest brands globally. While all these payments apps are used by the end consumers, merchants and small businesses have a different set of payment processing companies including the likes of RazorPay and Instamojo, which allows the merchant to receive the payment in their current account in T+3 day time frame. A merchant is required to provide proper KYC documents before assigning the payment gateway to be used on websites, social media, and mobile apps.

Unified Payments Interface (UPI) built by National Payments Corporation of India (NPCI) is one of the biggest disruptors in digital payment space. UPI is the underlying technology in most of the payment apps today including Phone Pe, Google Pay & WhatsApp Payments.

Why is it Important to Implement a Digital Payments Collection Strategy

While all the businesses have understood the relevance of the digital presence and social media engagement for the growth of the business, a digital payment collection can boost the goodwill of your business. Often first time buyers are reluctant to pay via a wallet transfer (such as Paytm) due to lack of trust. On the other hand, sharing bank account details on social media can have severe consequences and not the best approach to collect payments. A digital payment gateway can solve this problem wherein merchants can send a payment link and the buyer can trustfully make the payment as business credentials are established through the payment gateway!

Payment Processing Fee

Every payment gateway company has a pricing structure for the transactions enabled by it. This is usually charged in the name of the payment processing fee. This fee often depends on the size of business, number of transaction, volume of transactions etc. Usually, it falls in the range of 1.75% to 3% of the total amount collected through its online platform. Some of the prominent payment gateway providers in India are RazorPay, PayU, InstaMojo, CC Avenue.

UPI2.0 – The Game Changer

NPCI has recently launched UPI 2.0 and this could be the biggest game-changer for business payment processing in India. UPI 2.0 will enable real-time payment collect in business bank accounts with a substantial reduction in processing fees. With wide penetration of UPI 1.0 it is expected that UPI 2.0 will have far-reaching consequences. Small businesses, freelancers and online sellers can reap huge benefits from the deployment of UPI 2.0

We at Fingage are building a platform which can be used by freelancers and online sellers to accept payments via UPI 2.0

If you are looking for an implementation of UPI2.0 for your business, write to us at [email protected]

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