Payment Gateway - Revolution in Indian Banking System - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • May 13, 2000 - Payment Gateway - Revolution in Indian Banking System

Payment Gateway - Revolution in Indian Banking System

May 13, 2000

Indian banking system is in the midst of a technological revolution. The alternatives to the conventional model of over the counter banking are upcoming payment gateways, which will facilitate inter-bank fund transfer and settlement over the web. Fund transfer over the payment gateway platform will substantially reduce the period for processing transactions, making it a forceful alternative to the electronic fund transfer (EFT) system of the central bank. The gateways will become operational as soon as the cyber laws are passed. Among the banks, HDFC bank is the first to launch the payment gateway and ICICI is likely to be the first among financial institutions.

Payment Gateway of HDFC Bank
Recently HDFC Bank has announced the launch of its payment gateway solutions for use in Internet transactions. It will facilitate the users to shop online and pay by the credit card by entering the card number. The bank has tied up with Global Tele Systems for setting up the gateway. It has 40,000 customers conducting Internet banking and is targeting 150,000 to 200,000 customers in the current fiscal. Some of the features of its payment gateway are:

  • It allows Visa and MasterCard credit card holders to do transaction online and realtime. The credit card details of the customer travel in a secure channel to VISA for authorisation and the customer gets online confirmation of the transaction. The confirmation takes about 10 seconds and the customer can then proceed to actually carry out the purchase.

  • The gateway will ease the process of payment and settlement considerably as earlier the process of payment for transactions through the net was cumbersome.

  • The bank will be receiving service charge for every transaction conducted through the gateway. It is planning to break even on the payment gateway project within a year.

  • The bank has implemented payment gateway solutions on the easy2shoppe.com shopping portal. It has also tied up with fifteen other portals, including satyamonline, indiainfo, Fabmart, mantra, cyberITmall, cricketnext, indiacar and VSNL, and is in talks with 20 more to offer similar payment systems.

Implementation of payment gateway will positively impact HDFC Bank’s bottomline in terms of cost reduction. The cost of doing transaction on the Internet is fraction of over the counter transaction (estimated to be 1% of the physical fund transfer cost). Also the topline growth will get a boost with the increase in user base.


Equitymaster requests your view! Post a comment on "Payment Gateway - Revolution in Indian Banking System". Click here!

  

More Views on News

INDUSIND BANK Share Price Up by 5%; BSE BANKEX Index Up 1.8% (Market Updates)

Sep 25, 2020 | Updated on Sep 25, 2020

INDUSIND BANK share price is trading up by 5% and its current market price is Rs 516. The BSE BANKEX is up by 1.8%. The top gainers in the BSE BANKEX Index is INDUSIND BANK (up 5.0%). The top losers is CITY UNION BANK (down 0.1%).

IDFC FIRST BANK Share Price Up by 5%; BSE BANKEX Index Up 1.5% (Market Updates)

Sep 25, 2020 | Updated on Sep 25, 2020

IDFC FIRST BANK share price is trading up by 5% and its current market price is Rs 28. The BSE BANKEX is up by 1.5%. The top gainers in the BSE BANKEX Index is IDFC FIRST BANK (up 5.4%). The top losers is CITY UNION BANK (down 0.6%).

How the YES Bank Collapse Unfolded - 10 Points (Sector Info)

Mar 9, 2020

A timeline of how YES Bank went from a stock market darling to a pariah.

Today's Stock Market Crash: 10 Points (Sector Info)

Mar 6, 2020

Top factors that dragged the markets lower today.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

How Much Money Do You Need to Be a Professional Trader? (Fast Profits Daily)

Sep 17, 2020

In this video I'll answer a question I get asked often: How much capital do I really need to trade the markets for a living? Let's find out...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE BANKEX


Sep 25, 2020 02:26 PM

S&P BSE BANKEX 5-YR ANALYSIS

COMPARE COMPANY

MARKET STATS