The gateway will authorise credit card payments and process them through a users bank account, and is expected to help wean Indians away from paying by cash for purchases made online.
Indias USD 13 billion (Rs 80,743 crore) e-commerce sector has grown on the back of the cash-on-delivery model, where buyers pay for their purchases at the time of receiving them. Almost 60 % of online sales in India are paid for in cash. But the additional processes required for cash-on-delivery and higher instances of returns have added to the overheads of online retailers.
Apart from saving credit card information, billing and shipping details of the customer, Snapdeals yet-to-be-named payment gateway will also incorporate analytics relating to the buyers specific choices, allowing them to complete transactions. The company has about 20,000 sellers transacting on its marketplace offering about 500 product categories.
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