Online payment management in India has become a very lucrative business. The main reason for the same is the recent growth of e-commerce in India. Further, although cash on delivery is the premier mode of payment in India for e-commerce transactions yet a gradual shift to cashless and online payments is happening in India.For instance, Internet banking guidelines in India by Reserve Bank of India (RBI) have been issued more than a decade ago. Similarly, an integrated banking system of India is in pipeline. Thus, the banking, financial and regulatory environment in India is changing and it is moving towards Internet banking, online payments and e-banking.
However, online shopping in India has certain legal and cyber security issues to be taken care of. For instance, cyber law due diligence in India is an area that e-commerce and online payment players must take care of. Cyber law due diligence for Indian companies is one of the most frequently litigated aspect in India. Lack of cyber law awareness and cyber due diligence awareness is the main reason that many websites and companies have been recently prosecuted in India.
Recently it has been reported that PayPal is planning to expand its domestic presence in Asia, where it has up to now been used mainly for international payments. PayPal is particularly eyeing upon markets of India and China that have huge potentials. PayPal has already applied for a license to work domestically in China and it also plans to do so in India with an eye toward entering Indian market next year. PayPal may also explore and establish mobile-payment system that is in great demand these days.
Even healthcare and pharmaceutical companies are exploring use of e-commerce for increasing their customers and profits. Many pharmaceutical companies are exploring digital communication channels for drugs and healthcare products in India.
E-commerce stakeholders, including online payment players, are required to comply with techno legal requirements in order to do their business legally and effectively. Further, we need dedicated e-commerce laws in India that can cover various techno legal and due diligence aspects. Till clear cut liabilities and rights are demarcated, it is advisable to stay on the side of legal compliance.
