From Cash-on-delivery to UPI
A few taps on your smartphone and you got your ticket to watch Ed Sheeran live. Little did you realize that in the process, you avoided a heat stroke, a leg cramp (unless you are a pro Lalbaugcha Raja’s devotee), a possible stampede(or a street-fight) and the commuting cost to the ticketing kiosks.
It’s fairly simple and fast to book a ticket today compared to what it was like a decade ago. Being India’s largest entertainment ticketing platform, BookMyShow witnessed this transformation firsthand.
Back in those days when digital payment was not a fad, BookMyShow used to deliver tickets to their customers on their doorstep in exchange for cash. Here’s a small anecdote: Pappu Pehalwan from Delhi was a regular customer. On his every fourth transaction, he would snatch the ticket and shut the door on the delivery boy. Eventually, BookMyShow had to start whitelisting and blacklisting customers. This worked well as a mitigation strategy but the revolution that solved this headache was the boom of the Digital Payments industry.
Courtesy Demonitization, digital transactions have trebled and quadrupled in volume and value across various modes from wallets to cards and interbank transfers from a year earlier. In this post, we briefly discuss some standard and some native(to BookMyShow) digital payment modes.
In former RBI governor Raghuram Rajan’s word, “The UPI is whatsapp moment for banking.” UPI is one of the most advanced method among all the digital payments.
It allows instant money transfer without the bank details. UPI doesn’t have a waiting period when it comes to registering a new payee into your account. Unlike traditional netbanking options, its available 24/7 with quick single-click authentication. With costs less than 50p per transaction, a single UPI app (e.g. BHIM, PhonePe, Google Tez etc.) gives you access to all your bank accounts.
Instead of the bank account number with the IFSC code or the credit/debit card number with the CVV, a Virtual Payment address or VPA (e.g. customer@abcbank, 992310****@xyzbank) is used to pay through UPI. Pretty easy to remember, right? BookMyShow supports UPI.
E-wallet or mobile wallet is the digital version of your physical wallet with more functionality. It allows you to stash your money to an online account linked to your mobile number. Your balance can then be used for making transactions without any hassles of entering your card/netbanking details. Of all the burgeoning payment options, innovations and strategies by the E-wallet providers have played a radical role in getting the customers accustomed to the cashless ecosystem.
Some notable features include QR code scanning, Mobile-Pin (mPIN), OTP auto-validation and fingerprint scanning. To encourage practice, customers are given attractive discounts and cashback options. BookMyShow supports over 15 E-wallets. Some of the most used ones are SBI Buddy, HDFC e-wallet, Freecharge, Mobikwik, Paytm etc.
It is exactly as the name suggests, a physical card/voucher with preloaded balance that can be redeemed on purchase of tickets for movies, plays, concerts, experiences or merchandise(if any) on BookMyShow. On the payment page, click on the tab “Gift Voucher” and enter your 16 digit gift card number for redemption.
Customers get to choose from a variety of vouchers curated for all kinds of occasions. Can’t think of a present yet to gift him/her because Archies greetings are just not enough anymore? Try out BookMyShow’s virtual gift cards or visit any popular retail outlet to grab a physical one. A lot can happen over a movie too ;)
Payment options like UPI and E-wallet demand that the customer must have the respective app and account to do a transaction. Hence, BookMyShow came up with MyWallet, a one-stop repository within the app for storing cash and promotional items intended to be used on BookMyShow.
With a one-click checkout process, the transaction is processed instantly within BookMyShow’s ecosytem without any redirections. This not only provides a seamless experience but also ensures a near 100% transactional success ratio.
Adding balance to MyWallet is mostly done online. But it can also be done at any select offline location near you.
These have been the most prevalent digital payment modes till now. Punch in your card details on BookMyShow’s payment page and you’ll be redirected to your bank’s page to enter OTP/3D-secure PIN to complete the transaction. Cards happen to be one of the best modes when paying at portals or E-commerce sites.
But if we talk about paying to merchants, they are not ideal. The charges range from 0.75% — 2.0% per transaction. There also lies a depedency on the availability of a PoS (Point of sale) machine to be able to swipe cards. BookMyShow has integrated with payment aggregators that process all card transactions for networks such as VISA, Mastercard, AMEX etc.
This is one of the primordial ways of electronic payment. The customer is redirected to the bank’s page via a secure gateway. Post authentication, he selects the account from which the money has to be debited. Futhermore, he continues with a two-factor-authentication (2FA) process done via SMS/Email to complete the transaction.
Since transactions made through net-banking involve multiple hops and user interaction at many levels, the transaction conversion percentage is lower compared to the ones done via cards or wallets. Nevertheless, owing to the fact that 15% of customers (coming from tier-2 and tier-3 cities) still opt for net-banking, BookMyShow allows net-banking for over 50 banks.
Recent entries to the Indian market like AmazonPay, PayPal and Visaco are also featured on BookMyShow. One would agree that digital payments are more convenient than cash payments. BookMyShow will continue to strive in its attempt to be a catalyst to a developing cashless ecosystem.
Originally published at we-are.bookmyshow.com on November 24, 2017.