Instamojo, a payment company which allows users to buy and sell their digital products has launched a new method of transferring money to a merchant or individual user without having to remember the bank account details.
According to the firm, users can collect their payment using just their Instamojo user name and about 600 merchants are already using the service over the last week.
To use Instapay, a business, individual or freelance professional has to share their instamojo.com/@username with customers to the payer and customers can transfer money to the account using various payment methods such as debit or credit cards or net banking. The money is then transferred electronically to the user’s bank account.
Here, the user’s username acts as a proxy for their bank account. The payout process and transaction fees are the same for Instapay as for other transactions over the platform. According to Instamojo, it will take on board small and medium business segments that have trouble receiving or making payments in their daily basis activity.
Sampad Swain, cofounder and CEO, Instamojo said, “Instapay could be someone’s financial identity.”
Founded in 2012 by Sampad Swain, Harshad Sharma and Akash Gehani, Instamojo also mentions that if users want to collect more information or set a price etc, then they will be required to create links, however users can adopt both approaches at the same time. As of now, users will not be able to use Instapay to carry out transactions using non-Indian/foreign bank credit and debit cards for INR priced links.
Instamojo does not have any upfront fees. Any person can create their account payment link, adding details like price, sharing the link on websites, through an email, and even on WhatsApp or through SMS on Instamojo and start collecting payments. Normally the charge in Instamojo is 1.9% for every successful sale completion and in case of Instapay the fees are expected to be same (the website does not explicitly say how much they charge per transaction).