Mar 9, 2012
Here are some stats from the Payment Gateway industry in India.
76% – Is the success rate of all types of transactions attempted while the user entered correct payment details (credit / debit / netbanking / cash cards) and had sufficient balance.
74% – Is the success rate of transactions using credit and debit cards using one of the 5 major payment gateways in India. (ICICI, Citibank, HDFC, Axis, Amex).
71% – The success rate of transactions using netbanking. This number is largely propped up by the private banks performance.
90% – The success rate of transactions using cash cards (ITZ Cash, Oxi Cash, etc). The cash cards control most components of the transactions, and do not rely on 3rd party infrastructure such as Visa / Mastercard. As a result the number of servers the data has to move per transaction reduces, thereby reducing the chances of data loss, and increasing the success percentage of transactions.
Refunds in 25% lesser time using netbanking - It takes 3.6 days for refunds to reach the account on credit / debit cards. Its takes 2.8 days for the same using netbanking.
What does this data mean for online businesses?
Online businesses stand to lose 25% of their orders just because the payment gateway lose customer data as they pass the customer data from server to server. And thats a HUGE number.
In an industry where conversions are a small 3% – 5%, 25% of topline makes a lot of difference.
There are a number of steps that ecommerce stores can use to stop this exodus of revenues, like calling customers who drop out at the payment gateway, offering assisted shopping cart over the phone, offering COD, offering a choice of multiple payment gateways to the customer, offering phone banking, among other options.
More on this in the next post. Happy weekend folks!