In October 2017, India’s largest online marketplace IndiaMART InterMESH Ltd. (IndiaMART) launched a payment gateway through which its 40 million buyers and three million sellers could transact their business electronically. The changing mindset of the Small and Medium Enterprises (SMEs) (See Exhibit I for information on SMEs), its core market, toward digital payments had prompted IndiaMART to launch the payment gateway. The payment gateway had features like escrow services, a digital payment platform, and financing for the SME’s.

IndiaMart partnered with ICICI Bank for the escrow service that was called PayX. The company expected the payment gateway to give a boost to its business, apart from providing a security cover for its buyers and sellers. Dinesh Agarwal (Agarwal), Founder and CEO, IndiaMART, said, “We do Rs. 50,000 crore (Rs.500 billion) of business on the platform but we believe another Rs 50,000 crore (Rs.500 billion) of business does not happen due to trust deficit and lack of payment facilitation between buyers and sellers.”

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