Indian Platform Global Payment Solutions
The purpose of this article is to provide information and guidance to those who are interested in building payment services. Asian markets are well known for their high demand for innovative payment solutions. India has a rapidly growing electronic payment handling industry, but essential technologies and mechanisms remain unavailable. As well as solving a significant problem, such technologies and mechanisms can produce the correct revenue for a company.
Popular Solutions for Payment Processing in India
Indian companies already have access to multiple payment solutions. In the case of web-hosting companies, you might use gateway services such as PayUMoney and Razorpay. PayU India offers several shopping cart platforms. Razorpay is sometimes referred to as the Stripe of India. Several large banks offer merchant services and gateways in India. AXIS Bank, ICICI Payseal, HDFC, and Citibank participate in the program. E-commerce website payment solutions and gateway services are available to you, and DirectPay, CCAvenue, PayPal, and EBS are among them. RuPay and Citrus are also online payment services from local providers. Although most of the available solutions target merchants, they focus on local markets.
Indian Platform Prospects
Marketplaces, PayFacs, CRM platforms, software companies, and shopping carts are rapidly developing in the Western hemisphere. India is home to many similar companies that are emerging and developing. Indian companies want to replicate the success of their European and American counterparts.
As a result, the Indian region needs the relevant technologies. Like Uber and Airbnb, Indian entrepreneurs are interested in building subscription-based services.
Undoubtedly, many businesses would benefit from having respective solutions available in their local markets. In addition, many local merchants are willing to provide such business payment solutions to their clients. For these solutions to work, local rails are necessary, as well as acquiring partnerships.
Our next section will outline the key challenges and risks an Indian platform or service provider might face.
Asian Region Risks Associated With Payment Solutions
In our previous articles, we discussed the risks associated with payment processing. Payment processing solution providers should effectively manage these risks. Calculating and managing them is difficult, especially in a country without a general registry of credit histories and solvency. Underwriting partners are difficult to find for Indian businesses because of this.
Merchant accounts cannot be issued in batches in India due to a lack of a universal mechanism. Split and chained payments that happen to have multiple vendors cannot be managed with flexible remittance solutions. Split payments complicate the management of chargebacks and refunds, as we wrote.
Example:
Suppose a FinTech company can split payments between multiple merchants (vendors). As a result of the split, the company might receive a large share of these payments. In some cases, unethical “splits” can be accidental and deliberate. In such cases, it would be challenging to “follow the money” and make things right in a region like India.
Large acquiring banks usually solve the problems above. Most large acquirers do not exhibit much innovation when operating in Asian markets. It is more common for them to provide solutions for merchants instead of software platforms that service these merchants. They may provide merchants with payment terminals and online payment pages. However, they usually lack the skills and technologies to work with local FinTech companies or PayFacs. FinTech businesses and PayFacs also power local payment services markets.
What are the challenges with implementing payment solutions in India?
Asian markets lack modern online payment processing solutions, according to many people, while some cite the lack of qualified personnel as the reason. Indian platforms seek FinTech companies or gateway solutions to service merchants in Europe and the Americas. Indian merchants are constantly accepting USD and Euro payments.
The lack of appropriate technologies, especially those aimed at platforms and PayFacs, is one of the critical issues.
Indian merchants also want to accept USD payments as another critical problem. An underwritten merchant should have a USD bank account in the country where it is located. Currency conversion problems and high cross-border transaction fees would otherwise plague this merchant.
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