We had written earlier that SnapDeal was planning to launch its own payment gateway soon. News has come in that the company has integrated a new payment gateway KlickPay on its website. KlickPay seems to be a separate product and there seems to be no apparent connection between it and SnapDeal when it comes to ownership. KlickPay’s site does not list Snapdeal as its parent company. However, there have been confirmation that KlickPay is indeed Snapdeal’s new payment gateway.
According to a report by Trak.in, KlickPay is a 5 month old startup which has been founded by a bunch of IITians. KlickPay allows online shoppers to save their card details in their KlickPay account. Users will be required to sign up for a KlickPay account post which they can select the KlickPay option to pay for products on Snapdeal. KlickPay says that its transaction process is secure and a user’s card details are not shared with Snapdeal or the merchant who the user is buying from. One of the major new features it offers merchants is the KlickPay priority score for each customer which is calculated based on previous orders, COD returns, social media influence etc. Based on this score, merchants can separate genuine orders from fake ones. KlickPay also offers 24/7 fraud protection to merchants.
The feature list of KlickPay seems to be the same as Flipkart’s PayZippy, which was launched a few months back. Snapdeal having their own payment gateway is a positive thing for the company as well as the merchants who sell on the site. It makes its easier for customers to buy more products and reduces the friction when it comes to paying online. If card details are saved, consumers can pay easily instead of choosing the COD option. This will reduce the complexity that COD brings for ecommerce companies. Having their own payment gateway also gives reassurance to both customers and merchants about their financial data and details. Instead of providing a third party with their financial details, both can now rely on Snapdeal, which has a vested interest in protecting both its customers and merchants.