What is EMI? 

It basically stands for equated monthly instalments. As self-explanatory as the word is, it basically allows the buyer to buy a big-ticket product or service without the requirement of immediate and complete payment. How, then, does the buyer pay? It’s simple, the buyer pays back the amount of purchase in comfortable monthly instalments instead of having to pay the entire amount upfront. This right here is the main appeal of this payment mode. Not only does the buyer get what they want but they can choose to pay over a few months, as per their comfort. 

Now, that we know what is EMI, the question that comes to mind is how EMI works to help your business.

How does EMI help you as a business?

Here are a few ways in which activating EMI at your checkout will help you boost your business: 

Increase consumer affordability: As a brand, you would provide all kinds of products or services that you can. Some are big-ticket while others are small-ticket. While most buyers take little to no time to purchase small-ticket items, they would definitely consider a variety of factors before investing in something that’s expensive. In such a scenario, the best way to enhance your customer’s affordability is to give them respite when it comes to paying you for the product. This is exactly what EMI does. This is an ideal way to delight your customers by making your big-ticket items affordable and attainable for them. 

Reduce cart abandonment: In continuation to the above point, when a buyer is unable to afford a certain product, they are bound to abandon their cart. This impacts your business in terms of conversion and revenue. But what if the buyer can choose to pay in instalments? In that case, your buyer will reconsider their purchase decision as paying in installments will help them gratify themselves and also ensure that they don’t invite financial burden as a result of the purchase.

Increase conversions: As mentioned above, once you have made yourself affordable to your buyer, conversions are bound to increase. This will ensure dipping cart abandonment rates and ensure that every customer journey on your platform is taken to completion.  

Increased revenue: Needless to say, once your conversions heighten, it automatically enhances your revenue. Now as a business that wants to prosper and sell nothing but the best, this is a win-win situation for you wherein not only does your customer become more loyal and makes repeat purchases but also you as a business witness escalating revenues. 

Now you know the many ways in which EMI activation is bound to help your business soar.

So, wait no more and activate EMI today!

Frequently Asked Questions

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Common payment processing problems with online payment methods

1. Cybersecurity fraud: One of the most critical dangers is cybersecurity fraud and fraudsters looking for data breach opportunities. Credit card processing and fraud during these transactions rank the highest in this crime category, leading to the opening of unauthorised new accounts. When data leaks occur, personally identifiable, sensitive information is leaked, leaving customers vulnerable to identity theft. Credit card fraud is a type of fraud that has not been eliminated and will continue to persist when we pay online.
2. Refunds to customers: Chargebacks or refunds are a forced return of money to the customers’ accounts. Refunds happen when customers return items, and the money flow is reversed back from the eCommerce store to the customer. A high rate of chargebacks or refunds usually is not a good trend for the eCommerce store’s profitability or business. There is also the increased risk of data breaches affecting the flow of refunds back to the customer account. The merchants and the payment processors are also responsible for ensuring that such chargebacks and refunds happen seamlessly.
3. Integration of different online payment methods: Customers opt for additional payment methods. Customer needs are constantly evolving with demands for new payment systems online. In this process, there is an integration of different payment platforms, including banks on the one side, ERP systems on the other side and individual entities in the middle. As an eCommerce store, you need to support multi-channel payments; otherwise, separate vendors must be identified for online payments and another for POS payments. Multiple payment systems increase the risk of cyber security fraud and operational costs.
4. Limited Mobility: Along with integrating different payment systems online, customers also look for mobility to other devices. Customers use not only laptops and desktops but also their tablets and mobile phones to shop at their convenience. Payment processing systems also need to evolve to keep up with the demands for updated technologies. This portability is an essential requirement where payment processors access multiple payment systems and portability to various devices. In this digital world, customers expect more versatile, faster and updated technologies to be provided by eCommerce stores to ensure better convenience. At the same time, the challenge of ensuring secure encryption to prevent data theft is also an essential requirement.

Payment processors use various payment types to make merchant payments. Payment processors and payment platforms use multiple charges, including cash, debit/credit card, e-wallet, and direct bank transfer.

• Cash: This is the most secure type of payment preferred by businesses. It is also the cheapest method, but there is no guarantee there wouldn’t be theft.
• Debit cards: These payments go through MasterCard or Visa and add a layer of authenticity to the transaction. They are also more secure due to the use of personal pins by customers.
• Credit cards: Credit cards work like debit cards with a PIN for authentication. However, customers buy on temporary credit for their purchases, for which they have to make payment later.
• Direct debit: When it is a regular purchase, customers can institute a direct debit facility where their accounts are debited automatically when everyday purchases are made.
• E-wallet payments: These are relatively cheaper and allow customers to pay using their mobile phones.
• QR code payments: These facilitate payments through a simple scan of the code on your mobile device.

Payment fees vary according to the payment method used for making merchant payments. Debit cards, credit cards, and e-wallets carry online fees, depending on the provider. Cash or direct bank transfer is the cheapest option for merchants to realise payments.

Key Takeaways

In conclusion, payment processors need to evolve with customers’ changing requirements. As customers prefer different payment options, eCommerce stores must keep evolving demands or risk losing a sale. Various attendant security problems prevent data breaches and ensure customers have a secure and seamless payment experience.

FAQs

The post The Most Common Payment Problems and Their Solutions appeared first on PayU Blog.

Why are Debit Card EMIs so popular?  

Well, Debit Card EMIs enable consumers without credit cards to avail EMIs as well. As we know not all consumers necessarily have credit cards. Also, even if they possess a credit card, they might not have the required limit to purchase a specific product. This is when Debit Card EMIs come as a relief. Because debit cards are possessed by almost anyone and everyone these days. Hence while buying a big-ticket product, if your consumers feel that they cannot afford to pay the entire amount upfront and are in need of EMIs, they do not necessarily need to look for a friend who has a credit card so they can borrow the card and then buy what they need. Debit card EMIs save them this trouble for sure! 

So if you are an online business gearing up for the sale season, then this is where your search for the perfect combination of payment modes ends! Because PayU enables your business to offer not just EMIs as a payment mode but we also equip you with Debit Card EMIs. 

How Debit Card EMI works? 

Debit Card EMI is a mode of payment that enables consumers to avail equated monthly instalments on their debit cards. One doesn’t need to have the entire amount in their account at the time of the transaction. Additionally, the bank does not block any amount on the consumer’s card. 

Of course, the obvious question here is how EMI on debit cards help. The answer to this is that as on 2021, India had a total of approximately 62 million credit card holders as opposed to over 940 million debit card holders. Clearly, there is a huge gap between the number of debit and credit card holders. This goes to say that a large part of the populace that probably has a requirement for equated monthly instalments (EMIs) is actually deprived of it because they don’t hold credit cards. Hence, enabling EMIs on debit card is one certain way to offer EMI as a payment mode to the masses that were otherwise unable to benefit from this easygoing payment mode so far. 

How do Debit Card EMIs from PayU help you as an online business in the upcoming sale season? 

• It helps you increase customer delight and thereby enhance your conversions. 
• Increase your customer retention 
• Enable EMI facility for even non-credit consumers 
• You get paid in full while your consumer pays in comfortable instalments 
• Empower your consumer to purchase whatever, whenever! 
• Ensure premium products are accessible across your existing and potential buyers  

With more and more people choosing to buy big-ticket and aspirational products via EMIs, it has become a significant payment mode. Is your business offering Debit Card EMIs yet? 

FAQs

The post Light Up This Festive Season for Your Consumers: With Debit Card EMI from PayU appeared first on PayU Blog.

Changing Landscape of Instant Refunds

Over the past decade, online shopping has rapidly caught on with Indian shoppers. People are far more comfortable with the idea of purchasing online instead of in retail stores. In fact, the number of online shoppers in India is expected to reach 500 million by 2030, which is a massive leap from 150 million in 2020.

The hesitation and scepticism that masked people’s minds about online shopping when it was initially introduced is not there anymore. Some of the major reasons behind the increase in online shopping are:

• Safety
• Competitive prices
• Ease of returns

Thus, as an online business, you can further ensure that returns are easy with speedy refunds or what we call Instant Refunds. This is the key to gaining your customers’ trust and ensuring that they keep coming back to you every time they need to make a purchase. After all, slow refunds are not only dated but also lead to customer dissatisfaction.

Here are some negative effects when you don’t process refund speedily:

• Drop in customer’s trust in the brand
• Increase in cart abandonment
• Loss of customers
• Loss of revenue

Now, these reasons are significantly negative for any and every business. So, if you are an online business aiming to maximize revenue and customer base, then clearly, Instant Refunds are the way to go. Most importantly, if you want to increase repeat transactions and customers, then processing instant refunds should definitely be a focal point for you.

Boost Your Business with PayU Instant Refunds

This is where PayU Instant Refunds comes in as a knight in shining armour for online businesses out there!

With PayU Instant Refunds, you can:

• Process round-the-clock refunds
• Offer refunds back to the source & delight them with instant payments
• Get real-time reports on the PayU dashboard
• Gain complete control to choose between normal and instant refund for every transaction

Now, these are a great combination of benefits to keep your customers happy! To add to this, PayU Instant Refunds supports 150+ payment modes and enables you to get 95% coverage on all domestic transactions so that you can make online payments to your customers with ease. To sum up refunds in a nutshell; the more instant they are, the better it is for your business.

So, what are you waiting for?

Aim for the skies because there’s no limit to your customers’ happiness

Only with PayU Instant Refunds!

FAQs

The post Move Over Noodles and Coffee, Refunds are Now Instant! appeared first on PayU Blog.

Needless to say, this impacted sales across a plethora of brands and industries. For instance, despite the existence of heightened demand for electronic appliances, the consumer durables industry experienced 30% lower sales in 2020 as compared to 2019. 

In such a scenario, the need of the hour was to enhance affordability for the masses. It became imperative that consumers are equipped or enabled to purchase big-ticket as well as small-ticket goods based on their needs and not just affordability. This ushered in what has now become a go-to payment option for most buyers in the country: No-Cost EMI. 

What is No-Cost EMI? 

Simply put, EMI stands for Equated Monthly Installment. As is obvious from the

full form, EMI means a fixed monthly payment provided by a borrower to a creditor on a set day every month.

Coming to No-Cost EMI, it is an offer by which you pay your EMI provider only the product price, equally divided over your repayment timeline.

To give an example, if you purchase a smart TV for INR 60,000 but cannot pay the entire amount at the time of purchase, you can resort to splitting the total amount across a fixed number of months and then paying that split amount on a fixed day every month until the total cost of the purchased product has been paid for. However, you are not expected to pay any amount over and above the original price as interest. This is what makes No-Cost EMIs a lucrative payment mode for most buyers!

Growth of No-Cost EMIs in India 

With EMI as a payment mode being available on most online commercial platforms, more and more customers are opting for it. In 2020 alone, Ezetap recorded a drastic increase of 220% in the total volume of EMIs processed in 2021. 

As the interest charged from customers is completely discounted in No-Cost EMIs, it is the most preferred or chosen option. 

Here are some reasons why No-Cost EMIs have become increasingly popular amongst buyers: 

• It is easy on the wallet and keeps your liquid money for you to be used throughout the month. 
• Customers can choose the tenure over which they would want to pay back the total amount, thereby controlling the amount of money they will pay every month. 
• No extra amount needs to be paid by the customer apart from just the product price.

No-Cost EMIs become a Regular 

Hence, it is safe to say that while the pandemic ushered in No-Cost EMIs, the Indian buyer is now habitual of this payment mode. What was considered a short-term fix to grow sales amidst economic slowdown and a global health emergency, is now turning into a part and parcel of the quintessential buying behaviour of the Indian shopper. Thus, we can safely conclude that No-Cost EMI payments are not just a passé but are here to stay for a long time to come. 

What’s important to note here is that with the growing dependence of the Indian buyer on No-Cost EMIs, businesses also need to tailor their payment modes and enable No-Cost EMIs for their consumers. No-Cost EMIs have now become a key to escalating conversions and consequently garner profits for any and every business out there. So, if you are a business owner looking for measures to push sales, here is one formula you can use immediately. 

Frequently Asked Questions

The post No-Cost EMI: Passé or Popular? appeared first on PayU Blog.

While India is on the path to recovery, here is a glimpse of how the latest monetary policy will impact the payments industry and its consumers:

Limit On Subscription Transactions Increased

To boost and simplify recurring payment transactions, the limit for e-mandates on cards (credit & debit) and UPI has been lifted from INR 5,000 to INR 15,000. This leads to a simpler and faster recurring payment experience for customers. Not just this, increasing the limit on such transactions will also give a boost to subscription-based businesses. It will also automate recurring payments for a higher value and be used for more businesses, viz-a-viz insurance companies, edtech companies, etc. This allows subscription businesses to experiment and build on their existing subscription plans and ensure maximized revenue.

UPI Payments Via Rupay Credit Cards Will Be Allowed

With UPI becoming increasingly inclusive and one of the most preferred payment methods in India, RBI has announced that UPI payments will be allowed via Rupay credit cards. All you need to do is add your Rupay credit card to the UPI app you use and start paying directly from credit cards on your UPI apps. With this, the system of credit becomes more fluid for consumers. On the one hand, UPI is one of the most commonly used payment modes; on the other hand, credit cards are also becoming indispensable. For the payments industry, this means more merchants being open to accepting credit cards which will enhance the usage of cards and boost UPI and card infrastructure in India. Also, this reduces costs for merchants as they don’t need POS machines to accept payments via RuPay credit cards. Additionally, this ensures all benefits of credit cards without any setup cost except standard MDR, which is chargeable.

This is the latest RBI policy announced by Das in June, which impacts the payments industry and its consumers significantly. What comes next is the only time, and the following policy meeting will tell. Till then, stay tuned!

Frequently Asked Questions

The post How Does Latest RBI Monetary Policy Affect Payments Industry? appeared first on PayU Blog.

Another area that has seen enormous growth is online transactions. Fueled by demonetization as well as the pandemic, the volume of online transactions has escalated to 45.6% in tier 2 cities and 54.3% in tier 3 cities. (Source: Economic Times) 

Businesses, as well as consumers, prefer online transactions as it ensures greater safety and is an easy process importantly, it eliminates the hassle of withdrawing cash or coming in close contact with anyone.  

With the growth of both small businesses and online transactions, it is very easy to put 2 and 2 together and conclude that online transactions form an essential part of small businesses as well. For instance, consider the owner of a cloud kitchen who collects and delivers orders offline and doesn’t have a website or an app. Or a freelancer who gets paid by his/her clients on a weekly basis. Or an online tutor who has to do online fee collection. How do they go about getting paid? 

It is in such situations that small businesses feel the need to have a payment solution that can help them receive payments with minimum hassle. This is where PayU Payment Links comes to the rescue of such businesses! 

What Are Payment Links? 

The PayU payment link is a simple URL to collect payments. Links are the easiest way to collect payments from customers or clients. All you need to do is create and share the link with the person from whom you are expecting payment. 

What adds to your convenience while using payment links is that once you have created a payment link, you can share it with your customers via any social platform that suits you viz a viz, WhatsApp, Facebook and Instagram. 

What Is The Process of Creating PayU Payment Link? 

As far as creating a payment link is concerned, it’s a simple 2-step process wherein you create and share the link or link payment with your customer. On receiving the link, your customer has to click on it and then fill in their basic details and proceed towards payment checkout where they can select from the available online payment methods and complete the payment. 

How Do PayU Payment Links Benefit Your Customers & You? 

Here are some ways in which payment links can be helpful for your customers as well as your business: 

• Create links individually or in bulk via dashboard or API  
• Track your payments in real-time 
• Accept partial or full payments on the link, as per requirement 
• Give access to a sub-user to create a link/only view   
• Share payment links via any social platform or SMS or email with your customers 

Which Businesses Are Ideal For PayU Payment Links? 

• Businesses without a website or an app: If you are a business without a website or an app, then payment links are the best way for you to collect payments from your customers 

• Businesses selling in-person: With more and more customers preferring to pay online if you are a business that operates in-person, payment links are the most impeccable tool to ascertain smooth payment collection. 

• Businesses selling via multiple digital channels: Off late, there has been a drastic increase in sales via multiple digital channels such as Facebook, Instagram, WhatsApp, etc. In such cases again, collecting payments via payment links makes you look more professional. At the same time, your customers have the flexibility to pay via any mode they want. 

Conclusion 

To cut the story short, PayU payment links give you complete control over your business’s finances. Be it a single link creation or bulk, the process is a cakewalk. With links being an absolute no-code solution, you can comfortably use the product without requiring the intervention of any developer. Be it card payments or any other mode, the payment link will take only a few seconds. Hence, PayU payment links are the ideal solution to augment your business! 

FAQs 

The post Sell Higher, Sell Faster With PayU Payment Links appeared first on PayU Blog.