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State Bank launches aggregator service

SBI is the first Bank in India to start its own online aggregator service

March 14, 2014 1:43 IST | India Infoline News Service
State Bank of India has launched “SBIePay” a payment intermediary, which will have electronic connectivity with various financial institutions.

The domain has been registered as https://sbiepay.com. SBI is the first Bank in India to start its own online aggregator service. The new service will go a long way in providing payment facilities to a large number of customers performing online transactions. SBIePay is also in the process rolling out Electronic Bill Presentment and Payment platform (EBPP) and IVRS for making payment over phones.

During the last couple of years electronic payments in India have grown at a rate of around 32% (2008-2012) i.e., from Rs. 15,400 crore to Rs. 47,349 crore. Apart from online travel industry, E-tailing is gathering substantial momentum. The share of the multiple channels of online payment industry is also moving rapidly. Though Debit Card and Internet Banking (direct account debit) together form around 45 % of the transactions, 43 % of transactions are still processed through Credit Cards. Cash on Delivery (COD) comprises around 40-60 % of transactions within e-Tailing. IVRS market mainly consists of teleshopping network, travel and Insurance segments. Government payments as a category is still evolving and is currently served by different methods viz., at authorised Bank branches, collection centres, drafts, etc, which will move onto the e-Commerce platform. Financial services are experiencing increased online uptake due to ease and simplicity of paying bills online.
 
Existing payment aggregators viz. IndiaIdeas (BillDesk), CCAvenues, TechProcess Solutions, Times of Money Ltd., E-Billing Solutions (EBS), Atom Technologies, and new aggregators like PayU, Citrus, Emvantage have targeted specific merchant categories and have created their own niche segments for online payments.
 
As a Bank and a payment aggregator, SBIePay aspires to bring in additional payment modes, new merchant categories, with a special focus on Government merchants i.e., Central, State Departments and Municipal Corporations.

SBIePay would leverage the Bank’s own Payment Gateway to process all credit/debit card transactions and the internet banking platform of the State Bank Group. SBIePay is already in the process of tying up with more than 40 Banks in order to process their Internet Banking payments. SBIePay will provide the business information and analytics to the Merchants and Banks for all transactions as an add on feature.

SBIePay aims to be the one stop solution for processing all online payment modes and become a dominant player in the payment aggregator space in the next three years.

 

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