The banking, financial and regulatory environment in India is becoming very conducive for online payment market of India. Companies like PayPal have already realised the potential of online payment markets of China and India. PayPal is planning to make its presence in India and China more prominent.Another reason why companies like PayPal are entering into Indian market is the strong growth of e-commerce in India. With the growth of e-commerce and e-governance in India, online payment market would also grow. For instance, electronic delivery of services in India would also result in a parallel growth of online payment platforms in India.
In fact, an electronic delivery of services bill of India 2011 has already been adopted by Indian government and it may become an applicable law very soon when the parliament of India clears the same. Add to this the initiatives of mobile governance in India. Very soon we may have an implementable m-governance policy of India. Also an integrated modern banking law for India is in pipeline that may strengthen online payments making in India.
While things are happening in the right direction yet there are some shortcomings as well. For instance, a majority of e-commerce payments are still made in an offline manner. The cash on delivery may harm e-commerce in India in the long run. A shift toward online payments is not only desirable but is also inevitable.
Similarly, e-commerce players, online payment companies and websites in India are still not aware of the key provisions of cyber law of India. E-commerce players and online payment management companies are still not aware about the Information Technology (Intermediaries Guidelines) Rules 2011 of India.
Similarly, both e-commerce platforms and online payment companies are required to ensure cyber law due diligence in India. The cyber law due diligence for Indian companies is very stringent and there is no reason to take it lightly. In fact, cyber due diligence for foreign and Indian websites in India is an issue that is frequently agitated before Indian courts. Further, legal requirements of undertaking e-commerce in India must also be strictly followed.
While the opportunities for e-commerce and online payment companies are great yet the corresponding obligations are also equally troublesome. If e-commerce and online payment companies wish to make good profits they have to ensure sound compliance with Indian laws, especially the cyber law of India.
