Analysis of Innovative Payment Methods

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Acknowledgements

This report is not just the result of the efforts of 4 students but collective contributions of many people. We would sincerely like to thank each and every one of them for taking time out of their busy schedules and spending time with us to give us insights into the payments industry.

More specifically, we would like to thank the following people:

1. Prof. Rahul Dé - Decision Sciences and Information Systems Professor & Chairperson, Centre for Software & Information Technology Management, IIM Bangalore for guiding us through the project and helping us understand the nuances of the payment industry and taking up e-commerce as a specific area of interest
2. Mr. Ruchir Kanakia - Head - Business Development & Operations, Instamojo for spending time with us, letting us into their offices and giving us detailed information about the success story of Instamojo and the challenges that they face
3. Mr. Ashwin Koorakula - Manager, Payments, Jabong.com for giving us a comprehensive overview of how the payments process works and sharing with us his valuable experiences in 2 firms
4. Mr. Jayavanth - Ex-employee, Payments Division, Flipkart.com for giving us detailed insights into Flipkart’s decision making process and explained certain decisions that the firm took and why they took them

Last but not the least, we would like to thank all the people who helped us collecting data and trends in the industry. Thank you.

Table of Contents

Acknowledgements        1

1.        Introduction        3

1.1.        The Payment Process        3

1.2.        Detailed overview of the Ecosystem        4

2.        Primary Data Research        5

2.1.        Insights from an Innovative Start-up        5

2.2.        Insights from an E-commerce Giant that uses PGAs        5

2.3.        Insights from an E-commerce Giant that is against PGAs        6

3.        Analysis of the Field Data        7

3.1.        The Issue of Downtimes        7

3.2.        The Security Perception – Innovation Trade-off        7

3.3.        Technical and Developmental Challenges        8

3.4.        Innovations in Payment Gateways        9

3.5.        It’s all about the Money        10

4.        Conclusion        11

4.1.        Future Course of Action        12

5.        Appendix        13

5.1.        Interview with Mr. Ruchir Kanakia (Instamojo – the Innovative Start-up)        13

5.2.        Interview with Mr. Ashwin Koorakula (Jabong – the e-commerce giant that uses PGAs)        16

5.3.        Interview with Mr. Jayavanth (Flipkart – the e-commerce giant against PGAs)        18