IRCTC to launch own digital payment gateway ‘ipay’

IRCTC is planing to launch its own digital payment gateway, which is being initially called ‘ipay’. The new payment gateway, which will be rolled out in phases after testing, is expected to be ready over the next 4-8 weeks.

At present, Razorpay, Mobikwik and Paytm lead IRCTC’s railway ticket booking transactions through their gateways. The companies have to pay “a one-time licensing fee to integrate with IRCTC’s website and mobile app and in return share revenues with IRCTC on every transaction that goes through them. The licensing fee ranges from Rs 75 lakh to Rs 1 crore.

IRCTC has recently completed its PCI-DSS (Payment Card Industry Data Security Standard) compliance and is planning to offer its payment gateway services to other state and central departments post the integration with the online ticketing platform.

Considering the large number of e-ticketing transactions the platform provides to existing digital payment companies, the effect of IRCTC bringing its own digital payment gateway will be major.