What comes to your mind when you hear the term ‘online payments’? Do you think of online businesses like Flipkart, Amazon, and Snapdeal? Or maybe the likes of Zomato, Udacity, Goibibo come to your mind?
You might think that the whole process of opening an app or a website, selecting a few products or services, and then paying online is fairly straightforward.
There’s a whole payment gateway engine helping you out to
purchase your physical and virtual products in ecommerce website/mobile app
book a ticket in your travel aggregator website/mobile app
add money in your digital wallet
order your medicines in your e-pharmacy website/mobile app
order food, book tickets, pay service fees,
There are hundreds of new and endless possibilities in every sector where digital payments can bring a magnanimous change.
Razorpay — The renowned name in the fintech industry
Razorpay is an online payment solution in India allowing businesses to accept, process, and disburse payments with its product suite. It gives these business entities to access all the modern payment modes like credit and debit cards, net banking, UPI, and popular wallets in the country namely JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp. Razorpay online payment solutions can be integrated by both web and mobile applications.
Founded in 2014, the journey of Razorpay over the years has been incredible, powering disruptors of all scale. With product after product, they have been able to provide the best payment solutions for all sorts of business cases, no matter how complicated or straightforward.
With over 800,000 merchants using Razorpay’s payment solutions, the biggest names in the market ride with us. Being the vendors for Razorpay, We’ve seen the company unfurl into a fintech superpower in India. And, we have been implementing Razorpay integration for our clients on their website and mobile applications.
Inception of Razorpay
This startup idea originated when the co-founders were working on the crowdfunding portal and in the process came to realize how muddled the online payment mechanism was in India. Following this, they changed tracks to work on this problem. “We realized that most online payment gateway solutions were extremely cumbersome to get started on, especially for start-ups and small- and medium-sized enterprises. When we contacted a few payment gateway companies, we were asked for our past operational records, presence of physical offices, security deposits, and very high set-up fees. Online reviews of most payment gateways in India confirmed similar bad experiences,” Said Mathur.
This, in turn, prompted them to build a start-up-friendly online payment gateway which was easy to integrate and use. After conducting some market surveys in the initial stages to verify the feasibility of the idea and then accumulating a positive response from potential customers, the co-founders decided on starting to work full-time on the Razorpay idea.
Razorpay- your online payment gateway is just two clicks away.
As mentioned earlier, Razorpay enables online payments by providing developer-friendly APIs and an effective integration process. Razorpay also offers a comprehensive dashboard to manage payments, as well as other plugins and integration suites for all major backend technologies and e-commerce platforms. In September 2017, Razorpay launched four products — Route, Smart Collect, Subscriptions, and Invoices, which allow businesses to manage multiple aspects of money movement including collection, reconciliation, and disbursal.
During the same time, Razorpay also announced that it was entering the SME lending space with its subsidiary venture called the Razorpay Capital. It is a lending platform that is designed to support Small and Medium Enterprises with instant and easy access to the lenders. This initiative is aimed at solving liquidity and cash-flow challenges by providing these firms with quick settlements and collateral-free loans. A beta version of the platform was launched in September 2018 and has already disbursed $30 million in loans and hopes to finish with an exit run rate of $100 million in March 2018.
Digital Payments growth during COVID-19 Pandemic
Life during a pandemic is not something we anticipated. With social distancing, these trying times have affected the way we go about our daily lives. While we are still confined to our homes, trying to keep safe from COVID-19, the distress still persists. The pandemic has also devastated businesses across industries, including digital payments.
As most have been advised to stay indoors to minimize exposure, consumers have turned to online delivery and payment services to meet their daily needs. Razorpay also announced that government and utility bill payments have noted a 30% spike, meanwhile the online grocery segment has also noted a 9% growth for the first time. The eCommerce segment has also noted an increase in payments.
- There was a 180% surge in NGO donation transactions in the past month since the beginning of the lockdown
- During the lockdown, industries like utilities (bill payments), IT & software, and media & entertainment grew by 73%, 32%, and 25% respectively
- Industries like logistics, travel, real estate, and food & beverage were hit the hardest as they observed a slump of 87%, 83%, 68%, 54% with closed establishments and canceled travel plans
- Mobile wallets exhibited impressive growth in the lockdown period, with Jio Money growing by 66%, Amazon Pay by 63%, and Paytm by 43%
- In tier 2 and 3 cities, the mobile wallet wave swept over as they continued to witness a massive surge in wallet transactions for bill payments
- Before the lockdown, UPI at 46%, remained the most preferred payment mode and continued to be so at 43%, 30 days into the lockdown
- We firmly believe that fintech companies are likely to gain the profound trust of Indian consumers in the months to come
- With tier 2 and 3 cities rapidly adopting the digital route for making payments, we foresee a gradual rise in digital transactions across industries
Harshil Mathur, CEO and cofounder of Razorpay, said, “On the flip, people are having to stay indoors and not having enough spending power, this can make the overall consumer spending go down creating a lasting (negative) impact. Nevertheless, we are all prioritising the right things now to ensure that the health of all of us is being taken good care of.”
Razorpay launched the second edition of its digital transactions report, ‘The Era of Rising Fintech’. The quarterly report analyses the online spending pattern of consumers and businesses across multiple payment modes available in the Razorpay platform.
According to the report, Karnataka topped the list of most digitized States in the April-June 2019 quarter, followed by Maharashtra and Delhi. Tamil Nadu ranked fourth, followed by Andhra Pradesh.
Digital payments empower growth in the Indian SME and startup sectors. We can see a magnanimous change in the next year due to the rise in internet adoption not only in metros but also in the two tier cities with a exponential increase in digital transactions in different business verticals.
We Janaspandana Software Solutions are reliable partners in enabling Razorpay payment gateway solutions to your products/migrating your current payment gateway services to Razorpay in your existing web and mobile apps.
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