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Online Retailers are Charging Towards Business of Payments

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Online retailers are entering payment space in an effort to shore up revenues, starting with Snapdeal, which acquired Freecharge. In recent events Flipkart also launched its digital wallet, Flipkart Money and Amazon acquired Noida-based Emvantage Payments just a month ago.
“E-commerce players in India are trying to learn from the experiences of Alipay in China. Most of the e-tailers here are looking to get a hold of the huge payments market by going through the mobile wallet route,” says Satish Meena from Forrester Research.

“Unfortunately, banks and payment companies haven’t done enough to keep up with the explosion in mobile growth with high failure rates on mobile. Ecommerce players have been forced to solve the payments problem for their short-term growth. Payments is also strategic (eBay bought Paypal) because it gives tremendous data about users and merchants which can then be monetized to drive up profits of online retailers. Large companies with huge user numbers will play a pivotal role in shaping the payments ecosystem, but innovation will likely be driven by smaller companies with no conflict of interest,” says Vikram Vaidyanathan, MD at Matrix Partners. Read more

Sweekar S

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