Introduction
IRCTC (Indian Railway Catering and Tourism Corporation), known for its customer-centric approach and pioneering initiatives, has been at the forefront of providing innovative solutions for greater customer delight. This case study focuses on the launch and success of IRCTC-iPay, the company's Proprietary Payment Gateway which was introduced in 2018 in collaboration with MMAD ( MMAD Communications Pvt Ltd ), a newcomer, on a pilot basis, to enhance the digital transaction experience for railway passengers and more as a step of IRCTC towards owning a Payment Gateway . The project, spearheaded by Mritunjay Tewari, AGM/IT, Nishant Jaiswal, AGM/IT, Anurag Bajpai, CEO/MMAD, and Pankaj Gambhir, CFO/MMAD, tackled various operational, technical, and strategic challenges prior to its official rollout. Swift decision-making and collaborative efforts of the Top Management were instrumental in penning this success narrative.
Background
IRCTC's journey began as a pioneer in internet ticketing services, offering customers the convenience of booking train tickets from the comfort of their homes and offices. Recognizing the need of own payment gateway and in order to understand fast changes happening in the world of payment industry and to encash it’s business potential, Top Management of IRCTC decided to venture into the realm of digital transactions. Both GGM of IRCTC looking after the work contributed fully in making Management understand the nuisances of the business. The launch unfolded and initially trailed on www.irctctourism.com before expanding to other services.
Key Features
IPAY developed in partnership with MMAD, stands out as an exclusive payment gateway that allows customers not only to book tickets but also to carry out transactions within all platforms of IRCTC. With a robust security infrastructure the services could easily avail compliance certificate of PCI-DSS. This payment Gateway ensures the safety of digital transactions, and has been able to gain the trust of millions of users.
Performance Metrics
Since its inception this pilot project, has witnessed remarkable success, with the payment gateway processing over 5 million transactions monthly. The platform's efficiency is further highlighted by its ability to provide faster resolution in cases of digital payment failures. Further handling more than 15% of transactions on Asia’s biggest in its pilot phase website itself is an achievement for the product . Revenue receipts from this business have been on incremental side from the day one except for the year when the entire transport business was impacted by the pandemic. The overall transaction in the year 22-23 have been nearly 4.73 CR leaving sufficient operating profits for the company.
Autopay Feature
A standout feature of IRCTC-iPay is the Autopay functionality, enhancing the reliability of payment. With a pre-authorized mandate, the Autopay feature reduces the time users spend inputting payment instrument details. Once a customer's account is lien marked (One Time Mandate created), the transaction is completed and amount is debited if product is purchased, this was implemented for the first time on any of the IRCTC platform
Expansion Plans
Company had envisaged expansion of the scope of payment beyond in house transaction. The company aimed to extend its payment gateway to other modes of transportation and organizations handling other businesses. This strategic plan had been to have a separate set up in the form of subsidiary company dealing with payments related business only to ensure complete compliance of statutory requirements without impacting other businesses is now taking a shape . This move not only showcases IRCTC's adaptability but also marks a progressive stride in cementing its foothold in the lucrative payment gateway sector, opening new revenue channels.
Conclusion
The IRCTC-iPay, conceived in collaboration, exemplifies how a Central Public Sector Undertaking (CPSU) can innovate for customer satisfaction while boosting revenue. Introducing a proprietary payment system with a nascent partner like MMAD signifies IRCTC's expansion and diversification into the wider realm of digital payments. The triumph of IRCTC-iPay is poised to serve as a beacon for other enterprises aspiring to bolster their services with bespoke payment solutions in the digital age.
