Small-Town Merchants are Powering Instamojo's Online Payments Growth Story 1n2s5d

Small-Town Merchants are Powering Instamojo's Online Payments Growth Story
Highlights
  • Instamojo is an online payments platform
  • It lets you set up a store on its website
  • 65 percent of its customers are in non-metro cities
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If you are thinking about setting up a small business, such as tuition classes for children or a home-based bakery, accepting payments via cash only may not be a great idea. ThereтАЩs always the hassle of returning change to customers, apart from having to go to a bank branch to deposit money to your . ItтАЩs easier than ever to receive payments online, with technologies such as UPI and wallet companies picking up pace. 45605r

Many small businesses, however, do not have the technical know-how required to set up a website and integrate a payment gateway. Payments platform Instamojo is going after this crowd by allowing┬аpeople to set up a store on its website to accept orders and payments, and automating┬аprocesses such as requesting a refund by adding quick links in the emailed invoice.

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Sampad Swain, co-founder and CEO of Instamojo, says the companyтАЩs mission is to make online payments accessible to anyone with a bank and a phone number.

тАЬIf the end merchant or end seller - she doesnтАЩt have a website or doesnтАЩt know technology or API, all they have to do is on Instamojo and create a payment link. ItтАЩs a webpage hosted by Instamojo where you host a payment link,тАЭ Swain says.

As a merchant, you can share this payment link via email, social media, or the messaging app of your choice. People can use this link to make payments and the merchant gets to track these via a dashboard on InstamojoтАЩs website. If they want more than just payment links, they can create a store on InstamojoтАЩs website.

instamojo tote club payments Instamojo

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The Bengaluru-based companyтАЩs formula appears to be working. Initially, the biggest challenge for Instamojo was to convince people that you donтАЩt need to be tech savvy to accept payments online, Swain says. However that was back in 2013, when the company had just begun operations.┬аAfter demonetisation, Instamojo claims itтАЩs seen big growth in the travel and education sectors.┬аInstamojo now has 2.5 lakh merchants on its platform, of which over 30,000 are in these two sectors. Post demonetisation, Instamojo┬аhas witnessed a 60 percent increase in adoption of digital payments by the companies in these two sectors.

Most of InstamojoтАЩs growth has come┬аfrom outside of metro cities, with 65 percent of its customers residing in those areas. Swain says InstamojoтАЩs customers come from over 1,000 cities and towns across India, a measure of its wide reach.

Swain says, тАЬEducation, travel, and hospitality are the top categories of merchants on Instamojo. For example, we have a lot of tutors collecting tuition fees and also more organised forms of educational institutions.тАЭ┬аHe adds the company has found debit card transactions to be much faster than any other method on its platform so far.

тАЬWhen you pay by credit card or net banking, there is a hoop around two-factor authentication. Sometimes the OTP doesnтАЩt come. The moment you involve more than one party there is a challenge,тАЭ he says. With debit cards, you can just use an extra to process payments and Swain says that saves people a lot of time.

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