18 June 2013
One of the questions I’m often asked by other India-based SaaS startups with a global customer base is what subscription payment solutions are available in India. This question is also often asked on Quora’s ‘Startups in India’ topic as well as HackerStreet (HackerNews for India). The usual suspects - such as Stripe, Braintree and Authorize do not accept Indian businesses and the main payment gateways in India such as EBS, CCAvenue, PayU, PayTM payments etc provide no support for subscription payments.
Basically, unless you want to incorporate in USA - you have three options as an Indian SaaS startup
1. Fastspring - They have a marketing page for their subscription payments feature at www.saasy.com. They charge 7.9% or 5.9% + .95$ per transaction. Our experience with them has been good so far - setting up and customizing the pages were easy and their API documentation does the job.
2. 2checkout - It is pretty popular among Indian SaaS startups and is used by several such as Visual Website Optimizer and WebEngage. They charge 5.5% + 0.45$ for startups outside USA which makes them cheaper than FastSpring. However they had a big issue with processing Mastercards last year. Also they require that the customer needs to re-enter the card information to change plans so no easy way of switching between plans for paid customers
3. PayPal - PayPal also can process subscription payments for Indian businesses but requires the customer to have a PayPal account.
To any startups tackling online payment problems in India - solve THE subscription billing problem. This is a problem with almost no competition just begging to be solved. Do it!