Federal Bank has quietly entered the world of ecommerce by launching a Payment Gateway i.e Fed-e-Gate.
More details can be obtained @ http://www.federalbank.co.in/SME-Business_ProductandServices_PaymentGateway.aspx
Fed-e-Gate is a one-stop solution that enables you to accept Credit and Debit Card Payments from your e-Commerce Web site securely.
In simple terms, Payment Gateway is an ecommerce application which aids the ecommerce merchant to receive funds from its customers. The payments can be received from Credit Cards, Debit Cards or Netbanking.
Payment gateways provide the tools to process payments between customers, businesses, and banks.
Payment Gateways can be set up by Banks or third-party players. One of the most famous Payment Gateway is CC Avenue. Other Payment Gateways players in India are
§ ICICI Payseal
As can be seen from the above list, the Payment Gateway community is an exclusive one, with few players. However the scope is vast.
The differentiator amongst Payment Gateway players apart from the pricing is the initial hand holding stage. In this aspect, Federal Bank has an edge, as being a new division, it will interested to build this as a profit-centre.
Another advantage I foresee is that the Bank is focusing Fed-e-Gate as an SME Product offering, which will appeal to its customers.
As Federal Bank is also a sponsor of Kochi Tuskers, Kochi Tuskers can be its first customer. This will be a win-win situation for both.