Aiming to cater to Micro, Small, and Medium Enterprises (MSMEs) across India, PhonePe has launched its payment gateway service placing itself in direct competition with rival fintech operators like Razorpay, PayU, and Pine Labs.
What Happened? PhonePe attributes the decision to launch a payment gateway to its proven ability to handle large-scale transactions and its well-established consumer trust.
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At present, Razorpay, Cashfree, CCAvenue, Pine Labs, and PayU rule this arena. One97 Communications Limited, Paytm’s parent company, also launched its own payment gateway back in 2012.
In layman’s terms, a payment gateway is a technology that securely moves money from the customer’s bank account to the merchant’s payment portal.
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More attractive for merchants? PhonePe assures merchants that its payment gateway is reliable, promises uninterrupted service, and boasts industry-leading success rates. One of its key features is the real-time tracking of transaction success rates.
Furthermore, PhonePe has recently launched its account aggregator services through its subsidiary, PhonePe Technology Services Pvt Ltd (PTSPL). With this service, Indian users can, with their consent, share their financial data such as bank statements with regulated Financial Institutions.
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Breaking away from the norm of most payment gateways that typically charge a 2% transaction fee, PhonePe is currently offering free signup for its payment gateway service to new merchants.
