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Kicking off Stripe’s private beta in India

126 points| rahulshiv | 8 years ago |stripe.com | reply

46 comments

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[+] git-pull|8 years ago|reply
By the way, stripe has a cool new project, "stripe-mock": https://github.com/stripe/stripe-mock

It lets you run a local stripe API on your machine. I've got high hopes in it. This could be the cure to building resilient stripe tests on local machines.

The maintainer @brandur seems to know his stuff in regards to rest apis.

[+] lawrencewu|8 years ago|reply
Oh god, thanks so much for this. I've literally just been testing on prod and praying that it works.
[+] temp9910|8 years ago|reply
I have really high hopes from this. There is currently no good way for a SaaS startup in India to get money from international customers. I think this is why many are forced to incorporate in the US/Singapore/etc. I am a single founder working on a SaaS project and receiving payments from outside India is one of the biggest challenges for me. I do not want to raise funds but may have to got that route just so that I can incorporate outside India and start receiving payments.

I have three requests for Stripe:

1) I hope that Stripe does not come out with a limited version for India, and that it is possible to charge international customers a variable amount every month, like you can do in the US.

2) I also hope that they come up with a prompt way of issuing FIRCs for every payment received. Without an FIRC there is no way to prove that the transaction was an export and therefore you have to pay GST on it, which is normally 18% for services. This reason alone is pushing me to incorporate in some other country. I stand to lose thousands of dollars this year because I can't get an FIRC for the payments I receive via Paypal/Wire transfer/Transferwise.

Paypal and Transferwise have procedures to get FIRCs, but when you approach their banks they either don't respond or come up with hundred reasons to not issue one. Citibank absolutely sucks at this. I really hope that Stripe just charges me whatever they want and couriers the FIRCs to my address automatically.

3) I hope that Stripe has a legal setup that is compatible with RBI regulations regarding the filling up of SOFTEX forms. There are some restrictions which in my understanding prohibit Indians from using international gateways like fastspring.

[+] sudhirj|8 years ago|reply
How does paddle.com handle this? They take over as merchant of record, and so technically they're selling your SaaS and paying you royalties via a reverse invoice. Any idea if they need to or give our FIRCs?
[+] kumrr|8 years ago|reply
Have you tried using fastspring? Its expensive but seems to allow serving both indian and other country cards. Also if u open a export account (forgot what its called, but basically an account with an indian bank where u can deposit in $ or any specified currency), then fastspring can deposit the money there. You can then transfer it to ur rupee checking account at anytime and dont think u need any FIRC there. This is what we did a few years back for my startup (based in India), but not sure if things have changed recently.
[+] shripadk|8 years ago|reply
> 3) I hope that Stripe has a legal setup that is compatible with RBI regulations regarding the filling up of SOFTEX forms. There are some restrictions which in my understanding prohibit Indians from using international gateways like fastspring.

What exactly are the restrictions? Curious to know as I was planning to use FastSpring until Stripe made the announcement.

The bigger problem is the strict RBI regulations. Especially when dealing with FIRC/e-BRC and filing of SOFTEX forms. I don't understand why these forms are even required to be filed as everything is recorded electronically (bank wire transfers and other modes of transfer: NEFT/RTGS/IMPS). It's almost like the RBI doubts the intentions of Software Exporters.

> Paypal and Transferwise have procedures to get FIRCs, but when you approach their banks they either don't respond or come up with hundred reasons to not issue one. Citibank absolutely sucks at this. I really hope that Stripe just charges me whatever they want and couriers the FIRCs to my address automatically.

The thing is that Citibank doesn't provide FIRC (unless you receive an FDI). It instead provides "FIRC Advise". The Authorized Dealer (the Bank you hold your Current Account in) has to issue you the FIRC based on the FIRC Advise provided by CitiBank. But the AD Bank will insist on getting a NOC (No-Objection Certificate) first! So it's a long drawn out process! And once the FIRC is issued, getting eBRC from the AD Bank is another headache (as you guessed, it requires certified SOFTEX).

I just don't get the reason for all these ridiculous regulations. The real problem, I guess, lies in the fact that RBI is treating all Software Exports similar to exports for other Goods/Services. Purchase Orders are needed as proof for certification of SOFTEX forms when you and I both know that in SaaS or other software product sales there is no necessity for a PO (unless a big corporate wants to purchase in bulk) for export to take place.

Also, please sign these petitions:

1. https://www.change.org/p/finance-ministry-of-india-rationali... 2. https://www.change.org/p/shri-arun-jaitley-finance-minister-...

and if possible, do spread the word!

[+] adtac|8 years ago|reply
Oh god yes, thank you! I've wanted this for so long. I'm building a SaaS and I seriously considered paying $500 for Stripe Atlas to incorporate in the US just for Stripe. (I don't expect my crowd to be from any particular country, so a global payments vendor is the best option.)

The state of payments here is sub-par; while providers are still coming up, the documentation is just not sufficient (at least not up to Stripe's standards), the APIs are a bit convoluted, and the whole thing feels shaky. Plus, Stripe is trusted by customers, so I bet at least a few of them would be more comfortable if they see the familiar Stripe payment form.

[+] superasn|8 years ago|reply
I agree with you. The timing couldn't be better and I've tried most of the other payment processors but I didn't find them usable at all. Waiting eagerly to get my invite and hope this isn't some crippled version due to RBI regulations.
[+] ktta|8 years ago|reply
>In just the past two years, the percentage of India’s population connected to the internet has more than doubled to 500 million users

This is the statistic that will change the world more than a little bit. This is partly because the richest man in India has spent $25bn on telecom infrastructure and acquisition of new customers.

Here's a related article - https://www.economist.com/news/business/21718495-jios-100m-n...

[+] nocoder|8 years ago|reply
This is going to be tough. The competition in payment ecosystem is pretty hot in India. You have Alibaba funded paytm with about 250 million users. They provide digital wallet services which can be used for buying anything from flights tickets to electronics online or paying for Uber. Apart from that they are also present offline, you can but grocery or even tea with that. Additionally they also have payments bank licence so you can have your bank account there itself. Then there is Jio money funded by India s richest man which also operates in telecom and has roughly 100 million users, they also have a payments bank licence. Finally there is Amazon pay, which is moving slowly but has recently tied up with lot of websites for movies or online food delivery. So the competition is likely to be fierce.
[+] subbu|8 years ago|reply
YC has funded 2 Indian startups in this space: Razorpay, and Cashfree, and now Stripe has also entered the space. Along with the startups some big banks are also in the fray. I started with HDFC payments for my company's payments but moved away from them; they expect you to work at their pace. That'd have killed us by now. I wrote about my payment experiences here: https://blog.simplyguest.com/payments/simplyguest-payments.h...
[+] arjunbajaj|8 years ago|reply
None of those support payments from customers outside India, a requirement most online businesses have.
[+] dhruvrrp|8 years ago|reply
What's the credit/debit card penetration like in India? I recall most transactions happening in cash when i visited a few years ago. Which also led to amazon and flipkart offering cash on delivery payment methods.

Did something change in relation to that? coz if not then stripe is gonna have a hard time finding customers

[+] simonk|8 years ago|reply
Others have pointed it out that it may but its also for Indian startups being able to easily accept payments internationally without setting up a US company.
[+] subbu|8 years ago|reply
When I started accepting online payments for simplyguest.com the percentage was less than 50%. Customers preferred to pay cash, but cash is difficult to manage, so I started pushing towards online payments. My cash collection this month was less than 2%. I am trying to avoid this as well.

As businesses realize cash is not easy to scale, and if they are ambitious enough, they will push their customers towards credit/debit cards and other scalable channels.

[+] iamgopal|8 years ago|reply
Digital wallet is the new thing.
[+] kartickv|8 years ago|reply
As someone who doesn't know Stripe well, because it hasn't been available in India, is it just a payment gateway, allowing me to put a Buy button in my site or app to charge someone's credit card, debit card, net banking or Paytm?
[+] Operyl|8 years ago|reply
Payment processor, so “buy button on site/app/etc”
[+] blocked_again|8 years ago|reply
It would be interesting to watch Stripe competing with the Razorpay which started as the Stripe of India. Both are funded by YC.
[+] adtac|8 years ago|reply
Wait, YC would fund a startup that's a competitor to one of its other startups? Huh, this is news for me (and it opens up the possibility of me applying to YC; previously I was apprehensive because YC had funded a direct competitor ~10 years ago).
[+] superasn|8 years ago|reply
Is the Indian Stripe account same in functionality as the US account? Or is it restricted in some way due to the strict RBI rules in India?
[+] shripadk|8 years ago|reply
Hopefully without restrictions! Fingers crossed!

If it's going to be restricted in some major way, then there won't be any difference between Stripe and say PayPal which makes it a non-starter.

RBI really needs to loosen up a bit, especially when it comes to over-regulation of the Software sector.

[+] sukh|8 years ago|reply
We run a single product web store in India that has modest monthly transaction volume and care about the user experience a lot.

All processors are required to do 3D Secure verification. Local processors have integration for NetBanking. International ones are card only but may have better developer experience. Apple Pay uses 3D Secure too but bypasses two-factor verfication by tokenization.

Reliability/sucess rate is no longer as big of a deal with most competent processors. We've found the need to build custom tooling and abuse data more important for the Indian ecosystem.

[+] adtac|8 years ago|reply
Yeah, this is the real question. I really hope this will have feature parity. At least the basic things like recurring payments in foreign currencies and stuff like that.
[+] 0x62|8 years ago|reply
I'm still waiting for Stripe to launch in the UK's Crown Dependencies. I'm based in Jersey, and we have no (easy) marketplace payment solution.

Currently using Safecharge, which is quite good, however the setup process requires submitting 10+ documents with details on the company structure, UBOs and nature of business.

[+] pvsukale3|8 years ago|reply
Razorpay (funded by YC) is a competitor to Stripe in India. Has anyone tried using it? How was your experience?
[+] sunilkumarc|8 years ago|reply
A couple of months back I wanted to try Razorpay for receiving payments from my app users. Just like donate button in PayPal. But Razorpay was not supporting independent developers at that time.

While Stripe supports this feature beautifully, it wasn't supporting in India. Now I'm excited to hear this news.

[+] akhatri_aus|8 years ago|reply
Can you do subscriptions, how does it work with the compulsory 3D secure rules?
[+] danieltillett|8 years ago|reply
Does this allow companies outside of India to accept payment from Indians without an international credit card?
[+] anilgulecha|8 years ago|reply
Isn't that true already? My friends and I have been able to use local bank debit cards and they work as expected on international sites.