Hdfc Bank Kicks Off Payment Gateway

HDFC Bank has implemented its payment gateway solutions on the easy2shoppe.com shopping portal. This is the first time that the bank has implemented the final product for use on a website since it announced that it was working on payment gateway solutions for use in Internet transactions.

The bank has 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.

The payment gateway enables users to shop online and pay by a credit card over the Internet by entering the card number. The payment gateway encrypts the details of the transaction to maintain security and enables settlement by linking up the systems of HDFC Bank, the card issuing bank and Visa.

 

"Earlier, if a consumer had to conduct transactions and buy products off the Net, the process of payment was cumbersome. The payment gateway will ease the process of payment and settlement considerably," said Neeraj Swaroop, country head, marketing and retail assets, HDFC Bank.

The system also allows a direct debit from the consumers account if he is a patron of HDFC Bank. While the system is currently enabled for accepting Visa cards, HDFC Bank is also working on enabling the system to accept other card payment systems.

HDFC Bank receives a service charge for each transaction conducted through the gateway.

Among other products that HDFC Bank is planning to introduce are the facility for customers to access demat accounts over the Net, online approvals for loans and allowing customers to buy mutual fund units over the Net.

The bank is planning to break even on the payment gateway project within a year.