Online Payment Fraud: What Is It and How Razorpay Prevents It

FeaturedFraud Prevention for Online Businesses

This is the second blog in our series on online security and fraud prevention. To understand more about online safety (how to distinguish between a secure and non-secure website, how to ensure you are making a secure payment) read the first part here. To understand how online payment fraud occurs and the steps to prevent it, read on!


There is a reason why banks put up disclaimers announcing that their employees do not ask you for sensitive data, or that you should never reveal details like your OTP to an unknown person.

Online payment fraud is a reality of the internet age we live in and the numbers are only set to increase with the increasing digital adoption in India. According to a study by the credit information company

Experian and the International Data Corp (IDC), the fraud risk in India is currently pegged at 8.1 points; second only to Indonesia (8.7 points) and significantly higher than the average 5.5 points in the Asia Pacific region.

A 2016 consumer study conducted by ACI Worldwide places India at the fifth position in terms of total card fraud rates; behind Mexico, Brazil, United States, and Australia.

As they say, the best weapon against any problem is education; so let’s begin by understanding the different types of payment frauds that occur in India and how online sites and payment gateways like Razorpay prevent it.

Online Payment Fraud: The Different Types

The most common types of online fraud occur via phishing or spoofing, data theft, and chargeback or friendly fraud. We have explained these in detail below.

Online Phishing or Spoofing

Phishing is the process of accessing one’s personal information through fraudulent e-mails or websites that claim to be legitimate.  The information gathered this way can include usernames, passwords, credit card numbers, or bank account numbers.

The most widely used method for phishing is to redirect an online user (from an email or SMS) to an “official” website where they are asked to update their personal information.  You are thereby tricked into revealing personal information that you would ideally not reveal to anyone else.

Phishing can also occur via other electronic means such as SMS, instant messaging, and on email. You can be redirected to make a payment on a website that looks legitimate, but which is created to capture your card details so they can be used later.

According to reports, India is the third-most targeted country for phishing attacks, after the US and Russia.

Data Theft

Sometimes, dishonest employees or partners can steal credit card data from businesses and use this for committing fraud. Most online sites take stringent measures to ensure that such privacy breaches do not occur.

Instead of storing credit card details as is, for instance, websites and payment gateways use methods like tokenization and encryption to keep the data secure.

Razorpay takes data security very seriously. We are a certified ISO-27001 compliant organization, which means we undergo stringent audits on our data privacy processes.

Chargeback Fraud or Friendly Fraud

Let’s say a customer makes an online purchase. Later, they claim that the purchase was made fraudulently and ask for a chargeback – even though they made the purchase themselves! (A chargeback – in the simplest of terms – is an order from a bank to business, asking it to return the amount paid for a possibly fraudulent purchase.)

This is known as chargeback fraud or friendly fraud, where business processes a transaction since it seems legitimate; only to be issued with a chargeback later on.

Chargeback frauds cause GMV losses and are a hassle for any business. We have a Razorpay Chargeback Guide that will help you understand why chargebacks happen and take steps against fraudulent charges.

The Effect of Payment Fraud on Businesses

As per the current terms and conditions, a credit card issuer (i.e., the bank) does not consider the cardholder liable for any fraudulent activity; for both card-present and card-not-present frauds.

Therefore, payment frauds involving credit cards have a significant effect on the business community and a significant impact on a merchant’s bottom line. Every time a customer issues a chargeback, it leads to loss of both inventory and GMV. This is especially true for retail establishments, where the profit margins are usually small.

Regarding industry, the subscriptions industry continues to have the highest rate of fraud for two main reasons:

  • Subscriptions are essentially a card-dependent service; wherein the USP of the service is that the customer does not have to make manual payments. It is easy to claim that one’s card was used without knowledge in such a scenario.
  • Fraudsters and hackers use subscription services to ‘test’ cards. Online subscription services usually provide a one-month free trial, but one needs a credit card to initiate the trial period. Since the value is negligible, such payments usually go unnoticed by a card owner. If the card details are incorrect, the subscription business shares a detailed authorization error; thus making it easy for the hacker to modify their strategy and continue using the cards.

Razorpay: How We Help Businesses Reduce Fraud and Mitigate Risk

Apart from the mandatory protocols, Razorpay has its processes (developed in-house by our tech whizkids) to detect and prevent fraud and mitigate risk. As a payment gateway and a converged payments solution company, we take data security very seriously.

By delving into our data and analyzing patterns, we have been able to institute processes that ably discern between a ‘normal’ and a ‘suspicious’ transaction with credible accuracy. These systems are divided into two types:

a) Systems for detecting ‘Merchant Fraud’

Merchant fraud occurs when someone creates a fake or bogus company with no intention of selling any product to the customer. The business appears legitimate; but since it offers no actual goods or services, all users who make an online purchase only end up losing their money.

As a payment gateway, Razorpay has strict processes in place to vet every company which uses our gateway for processing payments. Some of the ways how we check for merchant fraud include:

KYC checks: Adhering to strict KYC norms even before we onboard a business is an integral part of fraud mitigation. We have an in-house ‘Risk and Activation’ team that runs background checks on new businesses and vets them before they are ‘live’ on our payment gateway.

At Razorpay, we take this check one level higher by monitoring all suspicious and potentially fraudulent businesses, and the transactions that originate from them.

Transaction monitoring: Razorpay Payment Gateway has an inbuilt ‘Risk’ logic which can sniff out a possible fraud faster than a K9 squad. Let’s say a merchant who gets 3-4 online orders in a day suddenly starts to get 300 daily orders.

A sudden spike in transaction velocity (number of transactions per minute/hour/day), volume (amount transacted for), or pattern (international orders for a local brand) is an indicator of fraud and our systems immediately flag such transactions for further investigations.

Our ‘Risk’ logic also has 72 odd rules for monitoring the thousands of transactions on our payment gateway on a daily basis. This logic is designed according to the merchant, and our logic pathway can easily differentiate between standard day-to-day transactions and those that carry a high probability of risk.

b) Systems for detecting ‘Customer Fraud’

Customer fraud occurs when a stolen or lost card is used for suspicious activities. It can also occur for other payment modes. Not only does this affect the user, but it is also detrimental to e-commerce websites as it increases cases of refunds and chargebacks, and leads to loss of GMV.

At Razorpay, we strive to protect both our merchants and our customers. Which is why we conduct extensive transaction monitoring as well to protect both their interests. How do we do it? Here’s a peek:

Checking for hotlisted cards: Every time a card is used for payment, our gateway connects with the card provider to check if the card has been hotlisted. (Hotlisting means that the card has been blocked temporarily or permanently for use). This is done in real-time so that a verified transaction is still completed within seconds, while the suspicious ones get flagged.

Pattern-based transaction monitoring: We also use geographical and pattern-based transaction monitoring (as for detecting merchant frauds) to identify suspect transactions. This helps us in preempting and preventing chargeback frauds and other types of customer frauds. We have a hit ratio of being able to identify 85% of fraudulent cases in advance.

Online Fraud Prevention: The Future

Online fraud will remain a contentious issue even in the days to come. The more we connect and transact online, the bigger the threat. Moreover, since we cannot eliminate it, the solution must be to remain on guard every single second. The only way to prevent online fraud is through vigilance and regulation.

A good example here is the 3D Secure (3DS) protocol that VISA had developed to keep its customers safe, and which has since been adopted by other card companies like American Express, MasterCard, and JCB International.

A similar process is the 2FA used in India, which is mandatory for all cardholders and card-issuing banks. The RBI has also mandated online alerts for all card transactions – even those where the cardholder physically swipes their card at a PoS system.

For all transactions considered suspicious, cardholders have the option to issue a ‘de-activation request’ immediately and hotlist their cards.

The Indian government’s decision to appoint a nodal agency for dealing with phone frauds – called the FCORD initiative – is another praiseworthy step. We at Razorpay are also in touch with the MHA, which has designated the FCORD as the Nodal Agency for reporting and preventing Cyber Crime frauds in India, regarding the same.

While a zero-fraud system will take some days to achieve, we are constantly building new processes to minimize fraud risk for all consumers.

The bottom line though remains this: If you are building an e-commerce website, remember to follow all the protocols mentioned above and minimize the risk of fraud. Alternatively, find a payment gateway (hello there!) that has stringent security protocols already in place. We’re just a click of a button away!

How Secure Are Your Online Payments?

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At Razorpay we strive to make every transaction done via our payment gateway a secure payment. We’re a technology-first online payments company and online payment security is in our DNA. We employ a ‘no stones unturned’ approach to safeguarding the interest of both the online businesses who use our products, as well as their consumers.

We also understand the assurance of secure payments is one of the primary drivers behind the choice of a payment gateway.

With the growing number of e-commerce users and transactions in India,, it is important that we are all aware of the mandatory security protocols for e-commerce websites; so that we can avoid fraudulent situations. As the saying goes, prevention is better than cure.

In this article, let me walk you through the security protocols and processes followed at Razorpay, and which you should look for, too, every time you transact online.

online payment security architecture and information flow

1. TLS Encryption

Data security on e-commerce websites or an online payment system begins the moment a user lands on the site. The TLS Certificate tells users that the data transmitted between the web server and their browser is safe.

As a payment provider, Razorpay uses the highest assurance SSL certificate on its website which is the EV SSL (Extended Validity SSL) certificate.

Without TLS Encryption in place, all data sent over the Internet is unencrypted and is visible to anyone with the means and intent to intercept it. An easy way to check if the e-commerce websites you frequent are SSL certified is to look at the URL and see if it uses ‘http://’ or ‘https://’ protocol.

The additional ‘s’ signifies a secure e-payment system. You can also look for the padlock icon at the beginning of the URL. Modern web browsers in their race to make the Web secure by default are now following the opposite paradigm – mark HTTP sites as “insecure”.

2. PCI-DSS Compliance

The PCI Security Standards Council is a global organization that maintains and promotes compliance rules for managing cardholder data for all e-commerce websites and online payment systems.

The Payment Card Industry Data Security Standards (PCI-DSS) is in effect a set of policies that govern how sensitive cardholder information should be handled.

Fact: The PCI Security Standards Council was created as a joint initiative by the four major credit-card providers: American Express, Visa, MasterCard, and Discover, in the year 2004. Over the years, the PCI-DSS standard has become the guiding principle for online security across the globe.

For an e-commerce website or an online payment system to be PCI-DSS compliant they have to follow certain directives:

Maintain a secure network to process payments: This involves using robust firewalls which can protect against malicious security threats. Further, the website or payment gateway should not use default credentials like manufacturer provided PINs and passwords, and must allow customers to change this data as needed.

Ensure all data is encrypted during transmission: When cardholder data is transmitted online, it is imperative that it be encrypted. Razorpay encrypts all information you share using checkout via TLS (Transport Layer Security). This prevents data interception during transmission from your system to Razorpay.

Fact: On the Razorpay Payment Gateway, all the details entered by a user like their name, address, and credit/debit card information are used only to process and complete the order. Razorpay never stores sensitive information like CVV numbers, PINs etc.

Keep infrastructure secure: This directive involves keeping abreast of new PCI-DSS mandates and using updated software and spyware to protect against known software vulnerabilities, running regular system and software scans to ensure maximum data protection.

Restrict information access: An important part of securing online payments on e-commerce websites is restricting access to confidential information so that only authorized personnel will have access to cardholder data. Cardholder data must be protected at all times – both electronically and physically.

3. Tokenization

Tokenization is a process by which a 16-digit card number gets replaced by a digital identifier known as a ‘token’. This is done to ensure the safety of the original data while allowing payment gateways to securely access the cardholder data and initiate a secure payment.

Fact: Even if a website gets breached and the tokens stored are hacked, it is immensely difficult to reverse-engineer the actual card number from the token itself. To do this, one needs access to the logic used for tokenization, which is not publicly available.

Credit card tokenization helps e-commerce websites improve security, as it eliminates the need for storing credit card data, and reduces security breaches. For more on how tokenization works and impacts online payments, you can read our in-depth blog.

4. Two-Factor Authentication

Two Factor Authentication, aka 2FA, or two-step verification is an extra layer of security added by e-commerce websites to ensure a secure payment for a customer.

This is a customer-facing authentication process, mandated by regulatory bodies like RBI, in that the transaction is processed only after the user enters a detail that only they could know, or have at hand (like a physical token or a security key). Many banks and other e-payment gateways also use the 2FA for their own payment modes.

Fact: 2FA is not a newly-minted technology, but it has recently become the de-facto method of authentication in the digital age. In 2011, Google announced 2FA for heightening online security for its service. MSN and Yahoo followed suit.

When you use Net Banking for a transaction, you are first asked to enter your username and password. As a final confirmation, the bank sends you an OTP on your registered mobile number. This process has been mandated by the RBI, is divided into two levels of authentication:

What the user knows: In this step, users fill in their card/Net Banking details such as username and password. This helps the payment gateway recognize which bank the card belongs to.

What the user (and only the user) has: This step is known as ‘Authorization‘ and is done through the OTP/PIN/CVV. The bank (and the payment gateway) can then confirm that the request for payment is initiated by the rightful user.

5. Fraud Prevention

Apart from these mandatory protocols, most e-commerce websites and payment gateways have their own fraud and risk prevention systems. Big data analytics and machine learning play a huge role in devising these risk prevention and mitigation systems.

By delving into our customer’s data and analysing patterns, we at Razopray can discern between a ‘normal’ and a ‘suspicious’ transaction with credible accuracy. Apart from this, there is a lot that you as a customer can do to reduce the risk of fraud. 

Always remember that:  

– Anyone of importance will never ask for your card data/passwords up front. Banks and financial service providers have a safe protocol to gain admin access to an account if the need ever arises.

– Passwords are safer when you don’t write them down. Keep strong passwords that you can remember, change them frequently, and refrain from writing them down somewhere.

– You have the right to dispute suspicious charges on your card or accounts. Raise a chargeback request for any unidentified transaction on your card. You have a legal right to a resolution.

If you are building an e-commerce website, remember that fraud prevention requires that you follow all the above-mentioned protocols. Or find a payment gateway (hello there!) that has stringent security protocols already in place. We’re just a click of a button away!

GST Invoices : Create and Send GST-compliant Invoices with Razorpay

FeaturedRazorpay-GST-Invoices-Launch

With GST coming into effect in 2017, all Indian businesses are now required by law to create GST-compliant invoices – both on paper and electronically.

The number of e-invoices across the globe is on the rise (volume of e-invoices in 2016 was approx. $30 billion worldwide, with an average growth of 10-20% per year); as has the volume of e-retail, with global transactions crossing the $2.3 trillion mark in 2017.

This led the think tank at Razorpay to have another of our lightbulb moments – we already had the infrastructure for businesses to accept payments online.

Why not merge it with an invoicing feature so that accepting payments against a GST-compliant invoice becomes easier for everyone? This would automatically cut down the need for multiple software and make the payment process more seamless for everyone included.

So, we set to work. And the outcome is an intelligent software that provides automation of GST incorporation into invoicing – a feature that very few products in the market currently allow. As the Product Manager for this new feature, I am proud to introduce you to ‘Razorpay GST-compliant Payable Invoices‘.

gst invoicing software

Razorpay GST Invoices – How Do They Help?

Invoices have been in trend since the ancient times when merchants used clay tablets to keep a record of supply. In the simplest of terms, an invoice is a “document which states the supply of goods and services and forms the basis for a tax levy”.

GST-compliant invoices differ from the earlier VAT invoices by a few crucial factors:

  • It is important to mention details like GSTIN of the supplier and the customer, the place of supply, the HSN/SAC codes which are specific to the goods/services being sold.
  • The invoice needs to have a clear breakup of the tax levied. Just stating the value of tax is not enough; there needs to be a breakup of the CGST/SGST/IGST components.
  • It is mandatory to issue invoices for all registered supplies as not doing so will be considered an offence under the law.

For a B2B business, e-invoices are an effective way of managing compliance as well as saving costs. It is estimated that creating invoices online can help reduce operational costs by 60-80% vis-a-vis paper-based invoicing. However, this saving does not mean much if you spend money on multiple software for payment, accounting and for invoicing.

GST Sample Invoice

The Benefits of Using Razorpay GST Invoices

The Razorpay GST Invoices gives you access to a single powerful system- where you generate invoices and collect payments via the same software.

Ultimately, this helps your business reduce operational costs, reduce payment delay and delinquency, and manage cash flow in a better manner.

Most importantly, it adds an informational element to the transaction. The customer knows exactly what they are paying for upfront.

The hallmark of any good product is that it simplifies an industry pain point and helps improve business processes. Our invoicing feature helps you in the following ways:

  • You can create ‘Payable Invoices‘ for B2B or B2C transactions easily and accept payments via a single process. For monthly recurring invoices, you can use our APIs to create invoices in bulk.
  • Automatically include the GST breakup in your invoices. Since this is linked to the HSC/SAC codes of the supplied items, there is zero chance of error in levying taxes. Remember, GST tax rates vary according to the tax bracket of the item and correctly calculating tax is an important part of creating GST-compliant invoices.
  • Your customers can choose to pay from multiple payment options available on Razorpay or even use Virtual Accounts to make offline payments against the invoices. This enables customers to make instant payment – anywhere, any time – and helps businesses maintain regular cash flow for important tickets.
  • The ‘Dashboard Tracking’ option allows you to tally Account Receivable (outstanding amount) and the money collected/received from your Razorpay dashboard. There is no need for a separate accounting software for this.
  • In certain cases, your customers may want to make partial payments against an invoice. Let’s say they only wish to credit a small amount as an advance and expect to be able to pay the rest when they receive the goods. Razorpay GST Invoices come with a ‘Partial Payment’ option for such use cases.

Most importantly, you can use our software to create invoices even if you’re not registered under GST. Our intuitive and intelligent software can be used to create normal invoices without GST taxes that can be sent to your customers as proof of transaction.

Creating GST Invoices with Razorpay – The Process

At Razorpay, we have always been very particular about keeping the user flow/user experience simple, so that our users – whether they be a startup or an established business –  can use the product seamlessly. We have tried to do the same with the GST Invoices and I have detailed the process below.

For easy understanding, I have broken down the process into five steps from creation to reconciliation.

GST Invoice Generation

Step 1: Creation and Generation of GST Invoices

  • To create an invoice for a customer, begin by adding all the necessary details such as the GSTIN of the customer, PAN details, mobile phone, and email id.
  • Next, add item details of the goods/services sold to the customer. You can choose the HSN/SAC codes for the same, and add it to the invoice.
  • Once you add the item details and the place of supply, the GST will be automatically calculated by the software. The GST rate is linked to the item code and the place of supply; hence there is zero chance of error.

You can save the details for further use. This will help in the mass creation of invoices and faster creation of recurring invoices.

Step 2: Sharing of GST Invoices

  • The invoices are shared via email and SMS (you added these details in the first step).

Note: Even in legacy software, the sharing has to be done manually. However, Razorpay automates the process so that it is easier and faster.

Step 3: Payment

  • You can share your bank details over the same mail to facilitate online payments. This works for ‘Payable’ invoices that need to be paid online.

Step 4: Notification

  • If the invoice is paid online, you will receive notifications via the webhooks available on our site. If the payment is done via RTGS or NEFT, then it needs to be manually tallied.

Step 5: GST Reconciliation

  • Reconciliation for Razorpay GST invoices is done the same way as for any other invoice. You will have to account for the monthly ‘Account Receivables‘ and ‘Invoices Issued‘ and ensure that they both tally.

So there! The easiest invoicing solution for businesses is now in town – Razorpay GST- compliant Payable Invoices. Have you used it yet?

TDR, MDR and Other Payment Terms Simplified

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So, there I am. A newbie in the world of geeks, trying my best to understand terminology I wouldn’t have been caught dead using just a few days back.

Yes, it’s KT (knowledge transfer) time at Razorpay and as the new kid on the content block, I need my grey cells to absorb as much of the payment-related terms as they can.

And that’s when it hits me. If understanding these bywords is hard for someone who’s been in the fintech industry for a while, I wonder what others go through.

So, whether you are a startup enthusiast, SME owner, or just a curious Lannister who likes to know things, here’s a simplified introduction to payments and some of the oft-used terms in the industry. I hope you find them useful!

For the purpose of this blog, let’s take a look at a simple payment flow and the terms associated with this:

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1. Aggregator/Gateway

A payment gateway is a technology that allows merchants to accept online payments from their customers. PayPal, WorldPay, MIGS are some well-known examples of payment gateways.

Now, customers have their own preferred method of making a payment. If I was buying my favorite beverage on ChaiPoint, I might pay for it via NetBanking, while somebody else might prefer a wallet or UPI.

A payment aggregator brings together all these various modes of payment in a single interface, thus allowing the user the flexibility of choice.

2. Authentication

When you are dealing with high volumes of money on a daily basis, fraud and risk must be minimized. The authentication process is what helps payment gateways verify that you are who you say you are and prevent fraudulent transactions.

As mandated by the RBI, every online transaction in India undergoes two levels of authentication:

  • Verification of payment details: This helps the payment gateway recognize which bank your card belongs to so that they can process your payment faster.
  • Verification of user or Authorization: This is done through the OTP/PIN/CVV. When you enter these correctly, you essentially tell the bank (and the payment gateway) that you are the person using the payment mode, and have initiated the request for payment.

3. Acquiring/Issuing Bank

Now, these are two very similar-sounding terms which can get a bit confusing at first. So, listen closely! Simply put, an acquiring bank is a bank which facilitates the transaction through its gateway. And the issuing bank is the one used by the customer when making a transaction.

Let’s say that I used my HDFC credit card for a purchase at ChaiPoint. The transaction was processed via Razorpay. The issuing bank – which gave me my card – is, therefore, HDFC.

Now, Razorpay has to channel my money to ChaiPoint, and it does so via the gateway provided by SBI. Thus, the acquiring bank, in this case, will be SBI. In a sense, the acquiring bank is the partner bank for the payment gateway.

**These terms become even more important when we talk of issues like refunds, or card holder’s verification. The onus is on the issuing bank to verify the details entered by the cardholder and validate the transaction.

4. Merchant/Nodal Account

As defined by the RBI, a nodal account is an account created by an e-commerce, payment gateway, wallets, and aggregators specifically in order to accept digital payments. A merchant account is a temporary virtual account that a business creates with a payment gateway.

For instance, Razorpay has a nodal account for accepting and processing payments. When a merchant signs up with Razorpay to use our services, we create dedicated merchant accounts for them, which act as temporary vaults for payments.

Every payment made by a user is first directed to the Razorpay nodal account and managed through the specific merchant account.

Once the funds are deposited into the merchant account, the merchant is free to do as they please with it. So, they can effectively choose to send the whole amount to any of their business’ current accounts, or use it to make payments to their vendors and other associates using a feature like the Razorpay Route.

Most Indian banks offer the facility to open a current account. You can also create one through a private service provider.

Now, I know what you are wondering about and here’s the answer to your query – a merchant account and a business’ current account are indeed two separate entities.

Provided by your payment processor, you can use the merchant account only to accept digital payments from your customers, and disburse it to your vendors. Your current account, on the other hand, is where funds from both cash and card transactions are added, and which you use to pay salaries and bills.

5. Capture

To help you understand this term better, let’s analyze the anatomy of the transaction I made at ChaiPoint earlier.

The process began with me choosing to make a purchase online. I picked my favored mode of payment, entered the details, and confirmed the payment.

Voila! I see that the money has been debited from my HDFC account and credited to Razorpay’s nodal account. It now needs to reach ChaiPoint’s account and for this to happen, ChaiPoint has to ‘capture’ the payment so that Razorpay knows where to forward it to – almost like sending out a virtual Thank You, and a confirmation that the money indeed belongs to them.

And if ChaiPoint does not raise this ‘capture’ request within a stipulated time (5 days from the date of payment) then the amount is automatically refunded to my account.

6. Settlement

Once the transaction has been ‘captured’, the payment gateway i.e. Razorpay has to ‘settle’ the amount with ChaiPoint. Note that the money has still not been transferred to ChaiPoint’s merchant account. This is because even though the authorization, authentication, and capture (in most cases) happen in real time, the fund transfer follows a separate cycle.

Banks transfer the amount to Razorpay’s nodal account first, and this usually takes 1-2 days. Razorpay then sends it to ChaiPoint’s merchant account, and this happens 2-3 days after the transaction was first made. This is known as a settlement

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So far, we have looked at the flow of money from the user to the merchant and understood the terminologies involved. Now, let us understand the process of reversing a transaction (as in the image above) and the terms used in this flow.

7. Refunds

Refund is as refund does. Come on, we have all done this at least once in our lives!

A refund is, in essence, a reversal of a transaction made by a user. In cases where the user is not happy with the goods or services purchased, or if they have paid for said purchase without actually receiving anything, they can ask for their money to be refunded.

The process is complicated and if you have ever wondered about it, here’s a wonderful blog that should clear all your doubts.

**Refunds and chargebacks may seem similar, but there is a difference in their machinations. A refund is initiated by the merchant (with or without a request from the user) because they failed to provide the goods/services agreed upon. A chargeback is a customer asking the issuing bank to forcefully remove money from the merchant account because the charges levied by the merchant are not valid.

8. Chargeback

The world of online payments is not just APIs and code. Every once a while, it can read like an interesting whodunit. Imagine a scenario where a customer has been charged for transactions on his credit card, which he claims he did not make. Is this a case of amnesia? Sour grapes, or a shopping affair gone wrong? Or, an intent to defraud? Whoa!

When a customer contests a charge made on their card, the issuing bank immediately issues a ‘chargeback’.

Again, in the example that we have used till now, let’s assume I ask my issuing bank to initiate a chargeback against ChaiPoint for transactions billed to my credit card. ChaiPoint will now get its best Sherlocks on the case to prove the validity of these charges within 15 days, failing which I am entitled to get my money back. End of story.

While as a payment gateway Razorpay is not directly involved in initiating chargebacks and refunds, we are a part of this digital infrastructure and do our best to resolve such issues quickly. Ideally, a business would like to stay away from chargebacks because it causes both loss of inventory (if you did make a sale), as well as money.

All the charges levied on a digital transaction are also levied in case of a chargeback.

**The Fair Credit Billing Act of 1974 (USA) is widely considered as the genesis of chargebacks. In India, this would fall under the ambit of the Consumer Protection Act, 1986.

9. TDR/MDR/Bank Charges

As we have seen till now, there are a lot of steps and entities involved in a successful online transaction. Since all of these entities offer a service to the user, they are entitled to a small fee which we have detailed below:

Bank Charges: This is the amount that the acquiring bank charges for providing card payment services. This rate is in guidance with specifications provided by the RBI (Reserve Bank of India). One of the components included is the ‘Interchange’ which is a fee given by the acquiring bank to the issuing bank for their card transactions.

Processing Charges: Your payment aggregator might also have to pay certain fees to other players in the loop like online wallets or banks for processing payments of a specific type. They would include this in the amount they charge you for every successful transaction.

TDR – Transaction Discount Rate: This is the amount that the payment gateway charges the merchant while transferring the money to their merchant account. This is specified by the gateway itself and includes the above charges. In India, this is interchangeably used in common speech with MDR (Merchant Discount Rate).

In conclusion, TDR = Bank Charges + Processing Charges + Taxes

**Payment Aggregators also provide additional services and products for managing your payments and hence on a case-to-case basis, may charge an additional service component.

And there’s more, but that’s for another time!

This obviously is not the end of the terminologies, but this is where we will stop for now. The Indian payments industry has been evolving rapidly and payment gateways have become essential for all businesses; whether online or operating out of a brick-and-mortar space. Hopefully, these jargons have helped you understand our world better!

UPI Continues a Strong Game, Albeit a Slight Drop in November

UPI november data Razorpay

UPI has become somewhat of a default payment mode for most people in India. In the last few months, UPI recorded the highest number of transactions, overhauled cards, and other payment modes, and became the most preferred one. If you’re interested to find out what happened in November, hang on tight. 

With 800,000 businesses onboard, Razorpay oversees huge volumes of P2M transactions every day from an umpteen number of businesses like BookMyShow, IRCTC, Swiggy, and more. To gather insights, we have only considered P2M transactions of UPI.

Note: All insights in this story are based on transactions held on the Razorpay platform

UPI transactions in the last 6 months

Like we mentioned earlier, UPI has been climbing up bagging the most number of transactions. But in November, UPI saw a slight dip as compared to October, although it was almost on par with September in the number of transactions (saw a growth of 39.56% growth from August to September). 

UPI november data Razorpay

UPI vs other payment modes

Although UPI didn’t see as many transactions, it still remained to be the most favored by Indian consumers.

2

  • UPI contributed to 42.61% of the total number of transactions that were carried out on the Razorpay platform
  • Cards made a comeback from the previous month by contributing a bigger chunk of payments at 41.87%
  • The third most popular payment mode amongst Indian consumers was netbanking, at 10%

UPI app-wise contribution

Since UPI was the preferred payment mode in November, let us understand how some of the UPI apps contributed.

UPI november data Razorpay

  • Again, Google Pay was the number 1 player in the market, contributing to 56.61% of the total UPI transactions
  • PhonePe held its position from the previous month by handing out 26.26%
  • PayTM was next in line at 6.96%

UPI apps – a closer look

Contributions aside, let us jump in to understand how much our UPI apps grew in November.

UPI november data Razorpay

  • Unlike before, the ICICI UPI app showed the highest growth in November, at 8.47%, followed by Axis and HDFC UPI apps at 6.24% and 5.17% respectively
  • Google Pay although being the most used UPI app, fell by 19.15%
  • PhonePe and BHIM also took a downward plunge by 3.92% and 3.99%

UPI transactions – a geographical split

As always, we wanted to see where all the UPI transactions came from. Here’s what we found.

UPI november data Razorpay

  • 29.92% of the total UPI transactions made in November came from Karnataka
  • Maharashtra contributed 13.98% while Delhi and NCR pitched in 7.9% 

While we are still looking into where UPI transactions, let us take a look at the tier-wise split.

Will UPI make a comeback next month?

UPI has been at the forefront of fintech innovations, pushing a great deal of digital payments in the last few years. The impact UPI has made is huge, reaching so many people from across India and enabling them to make digital payments.

Let’s dive deep next month and draw new insights from the transactions on our platform.

See you then!

The Easiest Way for Freelancers to Accept Payments Online

Accepting payments for freelancers

The definition of a dream job is not what it was a few years ago. Gone are the days when a “dream job” was working in a nice office or a well-established company. Today, the so-called dream job is to freelance. It’s to do one’s own thing and work on one’s own terms. 

It’s not surprising then that the Indian workforce is swapping the security of a 9-to-5 job for the flexibility of freelancing. Millennials and Indian workers facing significant lifestyle changes such as motherhood or adapting to newer lifestyle choices like working remotely have started to adopt more flexible and empowering ways to work. 

Here are some statistics that paint a clear picture – 

  • It is predicted that freelancers will contribute to 50% of the nation’s workforce volumes by 2025
  • The Indian freelance market size is estimated to touch USD 25 billion by 2025
  • 60% of Indian freelancers are under the age of 30 years today
  • On average, Indian freelancers work up to almost 40 hours a week; 160 hours a month
  • The average income of freelancers across India is Rs 20 lakh per annum; 23% of them make over Rs 40 lakh per annum

However, despite the fast growth and healthy predictions for the future, the reality is that freelancers and unregistered businesses within this ecosystem are facing numerous challenges. 

Problems freelancers face

While talking to our existing merchants as well as the potential ones, it came as a surprise to see the kind of hassles these users were facing and the need to build a unique solution for them. Here are the top problems that the unregistered businesses face on a day-to-day basis:

Lack of knowledge around GST  

To some, it seems that GST is just for registered businesses but nothing could be farther from the truth. Unregistered businesses and freelancers also come under GST laws. This raises the demand for freelancers to create GST-compliant invoices. 

Freelancers are usually required to raise GST-ready invoices for their customers and their lack of knowledge in creating these invoices becomes a real challenge in the way they accept money.

Irregular & late payments

For freelancers, payment cycles are always irregular and this can create an unpredictable financial crunch. To make things worse, freelancers often have to deal with late payments and in some rare cases, clients renege on payment commitments. In fact, studies show that 58% of freelancers have experienced not getting paid at all for their work. They end up spending inordinate amounts of time following up with clients for unpaid dues. 

Inability to showcase their brand

Branding isn’t just for large organizations or registered businesses. Branding is the secret sauce that aids in the success of a business of any size. And for freelancers, this becomes more important than ever.

While most freelancers have a basic social media presence, they lack the technical know-how to be able to amplify their digital brand presence through websites and customized landing pages. 

This creates a significant difference in the perceived value that a freelancer brings to the table compared to a registered business. 

Absence of seamless digital payment solutions

The most common way for freelancers to accept money today is through cash or bank transfers. In both cases, management and reconciliation becomes a big headache, this problem is especially more pronounced for unregistered businesses that have large customer bases or handle significant volumes. Think of a homepreneur who sells homemade pickles around town – reconciling payments received could take up a significant part of their time, which could be better spent on growing their business.

A holistic solution for freelancers to accept online payments

We are more excited than ever to announce the launch of our much-awaited product – Razorpay for Unregistered Businesses. Whether you are a freelancer, teacher, boutique owner or a professional, now accepting payments is going to be easier than ever. We promise!

Our research of the freelancer universe-spanning our existing customer base, social media and platforms such as Product Hunt has unearthed insights that we have channelled into our new product offering. 

Presented below are the key elements of our new product – 

Payment Links for quicker settlements

  • Say hello to accepting payments via WhatsApp, email, Instagram, Facebook, SMS & more
  • Send quick payment reminders and accept recurring payments

accept payments via social media

An instant personalised page for better conversions

  • Create a storefront with zero-coding and start selling, even if you do not have an app or a website
  • Add this Payment Page to your Facebook, Instagram or any other social media page and accept online payments instantly

create a payment page

One-stop solution for easy GST-ation

  • Just add GST, discounts and shipping details to a single invoice and the calculation will be done automatically for you
  • Send these invoices through any channel and get paid via credit/debit cards, netbanking, UPI & wallets 

GST invoicing

Does this look like a tool designed for you? Sign up today and get started in a matter of minutes.

At Razorpay, all we do leads to a single aim: asking our customers to leave their payment worries to us while they plan and unlock growth for their business. With this launch, we are looking to empower the gig economy to work better, faster and more efficiently. 

Freelancing is no cakewalk and we’re here to help you ride over the bumps with ease.

Get started with Razorpay today!

Introducing the Payment Links Chrome Extension By Razorpay

Introducing Payment Links Chrome Extension By Razorpay

With all the ease that online payment can bring, there still remains hope and scope of hustling to keep making it better. That said, in the online ecosystem, payments are not just limited to monetary exchange. They contribute to aspects like conversion rates, trust and loyalty as well.

With multiple channels of online payments opening their gates in the market, there is a need for businesses like yours to reduce the number of hops and leave payment worries to solutions providers like us! With this, here comes one of the most simplified payment solutions: Razorpay Payment Links.

What is a payment link?

Razorpay Payment Links is the easiest way to accept payments from your customers 24*7. Simply put, payment links are easy-to-use, versatile and mobile enough to manage all your online payments. 

Creating a payment link is as simple as it could be! Just follow these steps: 

  • Login to the Razorpay dashboard and create a payment link via API or the dashboard
  • Share the payment link via SMS, email, WhatsApp etc
  • Let your customers pay you via their preferred options (credit cards, debit cards, netbanking, UPI, wallets etc.)
  • Get notified once the customer completes the payment

Here are the perks of using Razorpay Payment Links for your business:

  • Works even without a website: Don’t have an app or website ready yet? Collect online payment by these easy-to-use payment links
  • Alternative payment option: These versatile payment links can be a quick replacement for all your cash-on-delivery customers
  • Easy chatbot integration: Integrate payment links with your chatbots so that your customers can enjoy a seamless experience
  • Social media sharing: Make the best of social media platforms by using them to send these payment links and get the amount directly in your bank account

That’s not all. Here are a few things that make Payment Links the best and the easiest way to accept online payments:

  • Customers don’t need an app
  • All payment options available
  • No monthly limits
  • Easy tracking via a powerful dashboard 

Different use cases of Razorpay Payment Links

When a customer is making an online purchase, the step where the payment comes into the picture is one of the most crucial ones. Razorpay Payment Links can help you win over your customers and reduce the number of drop-offs. 

Here are some of the use cases of Razorpay Payment Links:

  • The link can be created and used by any business, no matter the size. Even if you don’t have an app or a website, you can easily create and share payment links and get amount settled directly in your bank account
  • These links reduce the hops and minimizes friction points. Let’s say you are a car rental service provider. A prospective customer calls you to enquire and plan a journey. Fortunately, the customer sounds satisfied and you sense a higher chance of him or her proceeding with you. But chances are that after he or she might get distracted or be unsure. There, you can create and send the payment link via SMS, WhatsApp, email etc. within seconds while they are on call and have a successful conversion right there!
  • Payment links are best when it comes to providing quality service to your customers. Let’s say, unfortunately, a payment method is failing and your customer is unable to complete the transaction. You can easily choose to create and send these payment links to them and they can pay as per their convenience. The best part is, you can track the status of the payment easily.
  • Another use case is for businesses that provide home delivery services. There can be multiple cases when the customer is not at home and want the parcel to be handed over to a neighbour or, he or she does not have enough cash. In such a situation, payment links can be a big help. The deliverer can simply create the link there and the customer can pay via a range of options from anywhere, anytime!

With this, we are excited to roll out one of the finest features of Payment Links.

Razorpay Payment Links Google Chrome extension

Razorpay now powers a Chrome extension to accept payments via links! 

Sounds super-simplified, doesn’t it? Read on to know more.

The Razorpay Payment Links Chrome extension lets you easily create and share a payment link with your customers right from your browser window. The only prerequisite is to have an active Razorpay account. 

Simply follow these steps to get started:

Installing the extension

To install the extension:

1. Visit the Chrome Webstore and add the Razorpay Chrome Extension

Payment Link Chrome Extension

2. In the Add ‘Razorpay Payment Links’? dialogue box, click Add Extension

Side menu options

The following options are available on the side menu:

  • Dropdown
  • View the merchant ID
  • Find the document link 
  • Log out of the extension
  • Filter By (to help you check the statuses of different payment links) 
  • Go To Dashboard (to take you to Razorpay dashboard)

Perform action

Create a payment link:

1. Ensure that you are logged in to Razorpay Dashboard

2. Click on the Razorpay Payment Links extension icon on the browser’s toolbar

Payment Link Chrome Extension

3. In the payment links extension screen, click on ‘New Payment Link’

Payment Link Chrome Extension

4. In the window that opens, enter the following details:

Payment Link Chrome Extension

5. After you enter the information in all the required fields, click on ‘Send Link’. This will generate a new payment link 

Payment Link Chrome Extension

6. Copy the link address and click on ‘Done’. You can now share the link via the option of your choice and accept online payments easily.

Payment Link Chrome Extension

Please note: If you have selected the ‘Notify via SMS’ and ‘Notify via email’ checkboxes, the links are also sent to the specified phone number and email address.

So, are you ready to simplify the way you accept online payments? Sign up on Razorpay if you haven’t and stay a step ahead while you leave all your payment worries to us!

Also read: Build Your Own Online Store with Payment Pages

Fraud Prevention Solution Thirdwatch is Trending on Shopify!

ecommerce fraud prevention solution Thirdwatch from Razorpay

Fraud prevention application Thirdwatch helps E-Commerce businesses on Shopify save a lot of money on Return-to-Origin (RTO) costs especially for Cash on Delivery (COD) orders. Before we get into the details of how to install Thirdwatch and how it can be effective, allow us to explain the advantages and features of Shopify as an e-commerce business hosting platform.

A little over a decade ago, if you had told us that there was one website that garnered over 218 million buyers from 175 countries in just a year, we would’ve laughed at the sheer uncertainty. 

But, things have changed beyond imagination in the last decade. As we’re hitting the ceiling with hypercompetitive creativity, it’s important to take a step back and look at how we got here.

In this article, we’ll be speaking about how a single-player, Shopify has transformed the e-commerce industry as we know it and most importantly, how you can use the channel to supercharge your business.

What does Shopify do?

To start with, Shopify is an all-in-one platform to start, run, and grow an e-commerce business. India is a country majorly driven by small and medium businesses and for small players to grow, there needs to be a platform that allows them to run their business seamlessly. This is where Shopify steps in.

With a Shopify account, here is the multitude of things that e-commerce merchants can do:

  • Start your business journey: Find a business name, buy a domain, and create a brand with Shopify’s free tools suite.
  • Sell everywhere: Use one platform to sell products to anyone, anywhere—online with your e-commerce store, online marketplaces, and social media, and in-person with point of sale.
  • Market your business: Take the guesswork out of marketing with built-in tools that help you create, execute, and analyze campaigns on Facebook and Google.
  • Manage your operations: Use a single dashboard to manage orders, shipping, and payments anywhere you go. Gain the insights and knowledge you need to grow.

What is the Shopify App Store?

Once you’ve set up your Shopify account, it’s easy to find a ton of features and plug-ins designed to accelerate your business. Shopify’s App Store is filled with thousands of applications designed to cater to your every business need.

And that’s Thirdwatch’s entry into this article! The protagonist of this story has finally come into the limelight.

The e-commerce market in the world is growing at a rate faster than we can comprehend. With unforeseen growth comes unforeseen responsibilities. E-commerce sales worldwide are predicted to reach $632 billion by 2020!

But, do you know what’s bigger than the market itself? It’s the implications of fraud that come with it. As the trade grows, it’s only fair to assume that the online market has become a breeding ground for online fraudsters to innovate their tactics.

E-commerce fraud is one of the least talked about things for an industry so big. Most merchants assume the losses or fraud instances experienced during their stint is just “cost of doing business”. 

A closer look at e-commerce fraud

Here’s the thing– e-commerce businesses don’t have it easy, especially the small ones. In a hypercompetitive e-commerce environment, the only way to stand out is to offer exceptional customer satisfaction.

To meet with the mounting expectations of customers, businesses often don’t have a choice but to ship risky orders, in the fear of losing out on a genuine customer. This can often put a toll on their budget, as Return-To-Origin (RTO) orders take up the cost of logistics back and forth, often leading to losses. 

Here’s how e-commerce companies lose money in processing these orders:

  • Forward & reverse logistics
  • Blocked Inventory (Items stuck in transit)
  • Physical quality check and re-packaging of returned items
  • Increased probability of damage to fragile items, and hence more money spent in shipping them
  • Operations costs in processing these orders

We took the time out to check out the RTO numbers and their true impact on business. Here’s what we found– in case of COD orders, the percentage of RTO orders can be as high as 40 percent!

Imagine spending double the shipping costs for 40% of all your orders, let alone the opportunity cost on the blocked inventory and operations costs to handle them.

Read more: Is 30% RTO the Cost of Running an E-commerce Business?

How can Thirdwatch help reduce RTO costs?

Thirdwatch is a simple plug-in that helps you detect fraud orders, impulse purchases, non-deliverable addresses and flag risky transactions in real-time and finally, improve profitability. 

And what’s better? If you’re a Shopify merchant, Thirdwatch integration can be done in minutes, it’s that easy! Here are the simple steps:

Step 1: Install the Plug-in on the Shopify dashboard

Step 2: Sign up on the Thirdwatch dashboard with your account ID and password.

Step 3: Your centralized dashboard will be updated with the order status, along with actions for decision making. Start detecting fraud and saving money!

Thirdwatch runs on Artificial Intelligence and Machine Learning to help identify fraudsters across different platforms. Machine Learning technology offers the right solution as it addresses all the challenges in preventing fraud — scale, complexity and changing patterns.

For example, by adding the price of the user’s phone device or categorizing an address as five stars or one star, we turn meaningless data (phone model) into actionable information. This increases the accuracy of the red or green flag that the machine learning models generate for every transaction.

Network effects can be harnessed by pooling in anonymized data to predict and prevent fraudulent behaviour. This de-incentivises and penalises fraudulent behaviour across the ecosystem.

Moreover, e-commerce firms will truly know their customers so that goods are delivered to a person not merely to an address.

Most importantly, RTO will no longer be just the “cost of doing business”.

Here’s what Shabaaz, Founder of Nicci SkinCare, an established online cosmetics store on the Shopify platform, had to say about Thirdwatch.

We’ve been in the business for a few years now and Return-To-Origin orders are a big problem for businesses like ours. Using Thirdwatch has helped us in dealing with incomplete addresses and in detecting impulse and fraudulent orders. Our RTO rate (significantly) reduced by 30% because of Thirdwatch and we saved over INR 1.5 lakhs monthly in shipping costs! Highly satisfied with the product 

Curious to know more about how we’re solving this for merchants? Get in touch with a Thirdwatch expert today!

Introducing Razorpay Partner Program

razorpay partner program

The payments landscape in India is at its most evolutionary path. Ranging from consumer behaviour to government and regulatory initiatives, the payments landscape is changing rapidly and how! 

As India embraces digital payments, the need of the hour is to not only for businesses to provide digital payment options to their consumers, but for more businesses to go digital as well. Digitization of payments is a win-win for everyone involved, after all.

Having already offered digital payment solutions to over 3,50,000 businesses in India, we believed it was time for us to build an affiliate program for partners to bring more businesses on board the digital payments ecosystem. 

Thus introducing – the Razorpay Partner Program.

What is Razorpay Partner Program?

Razorpay Partner Program is designed in such a way that the partners, who build solutions for businesses or consult with them, can use Razorpay’s payment stack to enable more businesses to accept payments online.

This reseller program truly widens the horizon for all kinds of businesses! What’s more – this affiliate program is not limited to business partners alone, even unregistered businesses and individuals can use it to earn commissions by referring businesses to Razorpay.

The pre-launch story

We’ve grown and learned a lot since the inception of our partner program in late 2017 and we are happy to add more benefits for helping businesses connect to the world of digital payments. 

Over 800 partners like MSwipe, Limetray and UrbanPiper work with Razorpay to let businesses and individuals accept payments through direct integrations with their products. Other companies like Zoho, Juspay, and Intuit facilitate payments on their platforms for their connected businesses through our API infrastructure.

API and payment suites

Razorpay APIs, technical and operational infrastructure help partners bring businesses online and enable new types of businesses to go digital. We help handle everything related to payments by complying with RBI guidelines, providing 24×7 payments and integration support, and meeting product requirements of 30+ industries and 350K+ businesses.

Moreover, registering for Razorpay’s Partner Program is free and takes less than 30 seconds! If anything, we are currently paying out the highest commissions in the market, which ensures the partners are incentivized to connect more and more businesses to Razorpay. 

Start referring and earning

Razorpay’s partners get commissions for the transactions made by their merchants. A point to be noted for partners involved in referring and managing merchant payment stack – the transactions have to be initiated by the partner for the partner to get a commission. The partners will need to send invoices to Razorpay on the 1st of every month to get their commission.

Since its inception, Razorpay has paid out over Rs 1 crore in partner commissions to over 100+ partners. As we look to scale up our partner ecosystem, we also provide additional incentives so that Razorpay and its partners are incentivized to share a common vision – bringing more businesses online! 

Partnering with Razorpay helps you offer your customers a complete suite of payment solutions and get rewarded for it in the form of commissions.

What our partners say

We’re delighted to see the payment experiences that our partners have built and we have designed our program to enable them to build and launch faster, reach more customers, and operate at scale.

Here’s what Anirban Majumdar, Co-founder of UrbanPiper, has to say, “Our experience with Razorpay has been remarkable so far. We partnered with Razorpay when they were onboarding their first clients. They have been highly reciprocative to our feedback and have maintained a good relationship with us through the years.”

Preferential training and support

Partners get access to documentation around seamless integration with Razorpay’s product suite. Moreover, we assign designated POCs to help partners add merchants, integrate the payments infrastructure for them, and earn commissions as well.

And we are just getting started. Our aim is to build more products and resources for our partners in the future. 

Not yet signed up as a partner? Sign up here

Explore more about Razorpay Partner Program or get in touch with us here.

Build Your Own Online Store with Razorpay Payment Pages

razorpay payment pages build your own online store

Today, most Indian consumers rely on online stores to make their purchases. With online commerce penetrating the Indian market by 74%, close to 329.1 million people are projected to buy goods and services via online stores by 2020.

With that being said, we can all agree with the fact that there’s a massive rise in online stores in the e-commerce industry today. But, we simply cannot put aside the problems these stores face. Amongst choosing the right niche and profitability, most small online businesses face trouble with infrastructure. 

From building a solid, functional website, hosting it, all the way to integrating the right payment gateway, online businesses fall back on these basics that can really help them click. 

It’s also difficult to understand complex documentation with off-the-shelf e-commerce plugins or to find alternate solutions as they can be very pricey and time-consuming.

If you run an online business trying to set up your online store, or if you’re a freelancer trying to build your website so you can sell your products and services, then you know what we’re talking about. 

So, how do we make this process effortless? 

Razorpay Payment Pages – collecting online payments just got easier!

No need to build your website and host it. No need for a payment gateway integration.

Payment Pages is specifically designed to accept payments from your customers, even if you don’t have a website. You can easily create a storefront for your online store in less than 5 minutes and start accepting payments from your customers from all over the world, in 100 international currencies. And, this requires absolutely no coding experience or support.

Razorpay Payment Pages build your own online business

In just about six months, Payment Pages took off and skyrocketed, enabling payments for numerous small and medium-sized (SME) businesses. The response we received was truly overwhelming. While being so, our customers also made multiple requests for a small tweak here and there so that Payment Pages would be an absolute match for their business use-case. 

  • In just about two months, more than 5000 businesses started using Payment Pages
  • By the end of 6 months, we saw a 114% uptick, powering over 11,000 online businesses
  • 89% of businesses said it significantly brought down their tech efforts
  • 63% of freelancers said accepting payments became much easier
  • 84% of businesses without a website said Payment Pages helped them retain their brand image
  • 93% of businesses also said their customers had a seamless payment experience 

At Razorpay, we believe we can empower businesses to meet their fullest potential. While Payment Pages was already contributing towards our belief, we knew we could help these online businesses so much more.

Although the use-cases are different from one business to another, we tried accommodating as many requests as we could.  

What’s new with the updated Payment Pages?

With the update, Payment Pages is now much more functional than ever! The new power-packed features enable your online store to collect payments seamlessly, while you focus on providing your customers with brilliant user experience.

Multiple listings

List any number of products/services you wish to sell on your Payment Page, along with images and descriptions for each one of the items you list.

Smarter purchase controls

Have control over the minimum or a maximum number of products your customers can buy, set a minimum amount your customers can donate, and more.

Razorpay payment pages

Reordering input fields

Move the input fields/items on your Payment Page to arrange newer items or frequently purchased items higher by simply dragging them up or down in your list of items.

New input fields

Select from the many input fields supported by Payment Pages to capture customer data. From alphanumeric input fields and email address to PAN number and PIN code, select the right input field to ensure proper validation. 

build your pwn online store with Razorpay payment pages

Intuitive reporting

Get detailed insights for each item sold, based on real-time transactions from the dashboard to help you make better business decisions.

razorpay payment pages

Dynamic mobile experience 

Provide your customers with a dynamic, on the go mobile payments experience while giving them the option of choosing from many payment modes.

build your online store with Razorpay Payment Pages

Embeddable Payment Request button

If you already have a website but no Payment Gateway integration, simply embed the Payment Pages CTA button where you want to call for action. On click, your customer will be taken to the respective Payment Page.

Redirecting your customer

While you can customize the text on the CTA, you can also redirect your customer to your merchant page. Or, you can simply show a custom message to let them know the payment was successful.

How to build your Payment Page

Step 1: Login to your Razorpay Dashboard and navigate to “Payment Pages”

Step 2: Click on “+ Create Payment Page

Step 3: Choose your template from the ones that are already available, or create your own

Step 4: Fill in the details of your product/service/event and add pictures and videos of the same

Step 5: Click on “Add social media share icons” to enable social sharing

Step 6: In the “Payment Details” section, add the required input fields, product, and images, and customize them. You can also reorder the fields by dragging them wherever you need

Step 7: Click on “Save and publish

Share your online store’s Payment Page on various channels

Payment Pages can be shared with your customers on Facebook, Instagram, Messenger, WhatsApp, Twitter, and more!  Let’s take a look at how most online businesses and freelancers share Payment Pages on various channels.

razorpay payment pages online store

How online businesses use Payment Pages – popular use cases

Although the use cases for Payment Pages are many, tickets and events, donations, fee collection, and online product sales have been the predominant ones.

razorpay payment pages

Learn how you can

See it to believe it!

Experience how your Payment Pages powered online store works! Check out the demo.

What our customers have to say

online store razorpay payment pages

The upshot

Razorpay Payment Pages has truly stood up to our tagline: #PoweringDisruptors. Forget the hassle of going through with building and maintaining a website when we will do it for you!

Payment Pages boasts of over 11,000 customers as of October 2019, with the likes of Swiggy, Decathlon, BloombergQuint, Goonj, Brigade Homes Group, and Innov8, among others. 

 

Ready to Start Accepting Payments Online?

  • Quick Onboarding
  • Saved Card Database
  • Razorpay Checkout
  • 24×7 Support

UPI Contributes 50% to Online Payments. Beats Plastic Money to Retain Top Position

Razorpay UPI Report

In September, UPI went past cards and other popular modes to become the most preferred payment mode. We were stoked to see the switch, and curious, too. But the glory wasn’t a stroke of mere luck; it was an inevitable ascension of UPI as the de-facto mode of online payments.

One v/s the rest 

In October, UPI was responsible for 50% of transactions on Razorpay’s platform–surpassing cards by a 15% margin.

In September, cards contributed 42.56% of digital transactions, but in October it fell by 6.89%, which amounts to 35.67%. 

UPI transactions on Razorpay’s platform has maintained a consecutive growth of 11.02%, month-on-month, from September to October.

Let’s check it out!

Everybody wins

Leaving the footprints to be remembered in the digital payment landscape is Google Pay with 61.19% of UPI transactions.  

Whereas, PhonePe is standing as a strong contender with a contribution of 24.95%. As the numbers twirl, other players like Paytm and BHIM contributed 9.5% of UPI transaction. 

Also, big banks like ICICI, SBI, AXIS and HDFC sweeten the kitty with 1.08%, 0.31%, 0.14% and 0.06 respectively.

The banks are back for their bucks

Let’s talk about growth!

Surprisingly, the government-backed BHIM which saw a meteoric growth of 31.17% in September, which declined by 10.06% in October, while the rest of the players enjoyed an upward growth. 

Cutting through the noise is the favourite of the masses, GooglePay has capped a 9.92% growth rate, mostly being the choice of the customers over any other UPI app. Sitting tight in the second spot is PhonePe with 16.61% growth while Paytm chips in 9.58% of the surge. 

But the story doesn’t end here! 

This time there’s been a significant upturn, the bank apps are here to lock horns with the new school players with numbers like 16.61% (Axis), 15.18% (SBI), 14.36% (ICICI) and 7.61% (HDFC). 

That makes it a 53.76% growth for October alone! 

Haryana barges into the UPI club

Now let’s shed some light on the states that have contributed maximum to the cashless economy.

Karnataka has been the top contributor in UPI transactions for consecutive months, the southern state is responsible for 27.72% of total transactions in the country. 

Seizing the second spot is Maharashtra with 14.20% of UPI transactions. Whereas, Telangana and Andhra Pradesh gave away 10.76% collectively. Finally, Haryana entered the UPI club with a gracious 7.91% of UPI transactions. 

Let’s pause and talk about the cities that keep the engine running.  

Bengaluru has carved a niche for itself with 38.1% of UPI transactions, which shows its residents are way ahead of their counterparts in terms of choosing their payment option. 

Well, this doesn’t mean Hyderabad and Pune are going to hang their boots! The ‘City of Nawabs stands tall with 12.5% whereas the ‘Queen of the Deccan’ bats it out with 9.5% of UPI transaction.  

Also, tagging, along with Ahmedabad (4.3%) and Jaipur (4.0%) are Kolkata (3.5%) and Bhubaneswar (3.3%).

Let’s talk about tier wise contribution…

You can see Tier 1 cities like Bengaluru, Hyderabad, Mumbai (6.78%), Chennai (5.86%), Kolkata (3.74%), Delhi (6.41%) and New-Delhi (3.81%) drawing a mark in terms of UPI transactions, which totals to 62.87%. 

Tier 2 and 3 cities contributed 30.97% and 6.16% respectively. 

Note: In case you wonder about the numbers: the state and the city split is different

The view is better at the top, but…

Do you remember when it all started? The expectations and jargons and predictions that rocked UPI’s boat. Well, we have reached the shore now, and this time, the sky looks pink. 

As they say, the fable is fanciful and pleasing, but there are miles to go before we sleep. 

Note: All findings are only based on transactions held on Razorpay platform in October 2019

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Data from this story was also published in The Times of India.

From 2,880 Minutes to 60 Minutes – Never Fall Short of Money with Razorpay Early Settlements

razorpay early settlements

What does a business need the most to scale and grow from one stage to the next? Customers? Of course! Employees? Sure. Continuous development of their offerings? The answers can be many. But one of the most important requirements is working capital. 

Working capital is required for numerous reasons. And it is important because easy access to money for a business’s day-to-day activities can help improve business convenience greatly. This is the primary reason behind the launch of our new feature – Early Settlements.

The long process of processing settlements is a burning problem in the fintech industry. With banks settling to Razorpay 24-48 hours after the transaction is made, it gets challenging (and risky!) to settle the money before hand. However, asking people to wait for a week for an amount processed in 5 seconds is not just unfair but a poignant question on the technical advancements being made in the fintech ecosystem.

Out came Razorpay Early Settlements!

What is Razorpay Early Settlements?

With Early Settlements, you get access to your funds on the same day instead of your traditional or default settlement cycle. Razorpay Early Settlements helps you reduce your settlement period from T+3 (or T+2) days to within a few hours (from the time of transaction), thus enabling your business to avoid cash-flow challenges and prepare better for working capital requirements. 

razorpay early settlements

A ready inflow of cash that will help you amplify your business, and meet day-to-day cash requirements without any hassles. 

What are the benefits of Early Settlements for your business?

  • Easy and early access to your money
  • Reduction in daily cash crunch and increased cash flows
  • Better management of inventory and stock
  • Payments to creditors and vendors without any delays

Can the settlements be done at any time of the day on any of the days?

Yes, they can. Early settlements can be rolled out on any of the business days. We are also working towards enabling 24×7 instant settlements (even on bank holidays) through IMPS payouts. 

Razorpay levies a small fee that is deducted from the merchant’s settlement balance. This fee is primarily charged because Razorpay has to bear the subsequent cost of processing the early settlements by taking a loan from loan providers. This deduction takes place only if you decide to process the settlements instantly or on the same day.

Who is Early Settlements for?

It is technically for every business onboarded on Razorpay. Primarily in the last 6 months, we have seen 30% of e-commerce businesses that have gone live with Razorpay availing the Early Settlement functionalities to power their daily vendor payouts. This is followed by 17% of financial services businesses and 15% of IT services companies. For IT services, a majority of the users are freelance designers or web developers who want quick access to capital for the work they have done. 

We carry out risk checks (around refund rates, chargebacks, etc) before offering this feature to any business. To sum up, though we have seen a high traction among the industries mentioned above, businesses from almost every industry has availed Early Settlement and it has seen a high repeat rate. 

How to enable Early Settlements?

Just drop a mail to capital.support@razorpay.com or raise a support ticket at https://razorpay.com/support/ and we will get in touch with you at a time comparable to the time required to make a payment with Razorpay. 

To explore more about Early Settlements, click here.

Also read: How Automated Payouts are Helping SMEs

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How to Choose the Right Payments Solution for Your Business

razorpay how to choose the right payments solution

Choosing the right payments solution that supports your unique business case can be quite difficult and demanding. And, this is especially true if you have more than one use-case for your business. So, without further ado, let’s talk about the different payments solutions that you can opt for from the Razorpay product suite. To get there, let’s go through some basics.

What is a payments solution?

A payments solution (payment gateway and related products) is a service that receives an online payment request from your website. It further validates the payment details of your customer and checks for sufficient funds in their account for them to make the purchase.  Then, the transaction is authenticated, and the funds are transferred from your customer’s account to your merchant account.

[Suggested read: What is a Payment Gateway and How Does it Work]

What is the need for a payments solution?

If you’re an online business, you know for a fact that you have to accept payments from your customers. In today’s time and age where cash is simply not the best option; choosing the right payments solution is your way to go. And, it comes with a multitude of advantages.

Provide good payments experience

Most consumers are getting exceedingly comfortable with online payments. If they’re getting a cab ride or going to the movies, online payments have pretty much disrupted e-commerce to a great extent. And, the payment process is quite simple too. Consumers prefer cards, UPI, EMI, and other payment modes over cash to make their online purchases. 

Most payments solutions provide multiple payment options for consumers to choose from. By choosing a payments solution, you provide a good payments experience to your customers by allowing them to pay online, using the payment mode they’re most comfortable with.  

Accelerate the process

When your customer chooses to pay online, you don’t have to wait a long time to start processing their purchase. This also confirms that they’re a legitimate buyer who’s interested in your product, and not conning you by simply placing an order.

Your customer need not wait too long to receive their purchase. Their transaction takes a few seconds to go through, resulting in a quick confirmation of their purchase. A payments solution also helps improve cash flow for your entire business.

Make informed business decisions

Using a payments solution allows you to have complete control over the customer data you’d like to capture, to better assess your business strategy. Further, you can manage all your payments, refunds, transfers, subscriptions, webhooks, invoices, and more, all in one place (dashboard).

Based on the transactions and captured customer data, you’ll be able to receive key statistics based in real-time. You also get access to insights that can help you make better business decisions.  With different views, you can easily generate customizable settlement and reconciliation reports. 

Open your business to the international market

Accepting payments not only locally, but internationally also becomes a cakewalk with the right payments solution. This helps you open revenue streams from many countries, helping improve cash inflow. 

A good payments solution also supports transactions in many different currencies, while converting payments into your base currency. All the payments you receive in foreign currencies are also settled in your base currency. 

[Suggested read: How to Choose the Best Payment Gateway for Your Business

Razorpay’s payment solutions for your business case

Alright, now that we’ve gone over the fundamentals, let’s jump right into understanding the different payments solutions, and how each one of them can apply for your business case.

Razorpay is the only converged payments solution company in India that allows your business to accept, process, and disburse payments via its product suite. With Razorpay, you have access to all payment modes, including credit and debit cards, UPI, and popular mobile wallets.

No matter what your business case is, Razorpay has a payments solution for you. Ideally, you’d want to choose the payment solution that supports your business case.

Payment Gateway – All payments on website and app

payment gateway - Razorpay payments solution

Razorpay Payment Gateway works best to accept payments on your website or app. The PG easily integrates with your system while providing you with a completely online onboarding experience. 

Features

Accept all payment modes – From domestic to international, Razorpay supports the most extensive set of payment modes. Credit cards, debit cards, UPI, EMI, mobile wallets, and netbanking. You name it. We got it!

Checkout and global card saving – Say goodbye to asking your customers over and over to provide their payment details. 

Developer friendly – Razorpay PG offers robust, clean, and developer-friendly APIs, with plugins and libraries for all major languages and platforms.

Learn: Boost your conversions with Flash Checkout Provide your customers with a seamless payments experience with Razorpay Payment Gateway.

Payment Links – Create & send links to accept payments without integration

Businesses sometimes face the problem of upfront money collection and delayed payments from their customers. This can severely affect cash liquidity. Razorpay Payment Links is your way to go to steer clear of this problem.

Features

Batch upload – Create and share Payment Links for hundreds of your customers in one go by uploading a .csv or .xlsx file with customer and payment details. Save time and effort in issuing Payment Links with reduced manual errors.

Partial payments – Provide your customers with the flexibility to make payments in parts against large orders, as an upfront token amount or an advance payment instead of making the entire payment at once.

Create Payment Links on the go – Razorpay’s free browser extension helps you create and share Payment Links via email, Whatsapp, Facebook Messenger and other online channels with ease.

Tidbit: Payments fail for various reasons. And, Payment Links works best to help your customer go over the transaction again. Simply create and send the Payment Link over SMS or email.

[Suggested read: Why do Online Payments Fail?]

Learn:

Getting paid is simply a Link away!

Payment Pages – Customized, hosted pages to collect payments

payment pages

Offering online payments to your customers can sometimes be daunting. Creating a website, hosting it, integrating a payment gateway may consume too much of your time and resources. Razorpay Payment Pages is specifically designed to accept payments online, even for a business that doesn’t have a website or an app.

You can effortlessly create a Payment Page in less than 5 minutes, go live and start accepting payments from your customers, without any support. Create your own Payment Page from scratch or choose from one of the templates that are already available to you.

You can customize this Payment Page to suit your branding by including your logo and your brand colors.

Learn: How Razorpay Payment Pages can enable your business

See it, believe it — Payment Pages demo

A few use-cases for Payment Pages

To further help you understand how Payment Pages can be used, here are some use-cases.

1. Events and tickets – Our hosted Event Registration Payment Page is a quick and efficient way to register event attendees online. 

Learn: How to Sell Event Tickets Online Without a Website

2. Accept donations – Razorpay’s hosted Donations Page is the way to go if you’re raising money for a good cause. This saves you valuable time, allowing you to focus on the cause. 

Learn: Accept Donations the Easy Way

3. Sell products – Take orders around the clock using our Online Order template.

Learn: Sell Online Without a Website

4. Fee collection – Collect fees within seconds with our hosted form, without any paperwork. Let’s worry about simplifying payments for you!

Subscriptions – Collecting recurring payments made easy

subscriptions Many companies are turning towards subscription models to reduce periodic collection cost, increase monthly recurring revenue, reduce churn, and offer a better user experience.  With Subscriptions, you can offer your customers plans with automated recurring transactions on many payment modes.

[Suggested read: Subscription Economy: Business Impact of Rapidly Changing Consumer Needs]

Features

Run on autopilot – Link your customer to a plan, create a subscription, and leave the rest on autopilot to work best for you.

Easy ReportingTrack all your subscriptions and make informed decisions using dashboard reports.

Handle edge casesRazorpay takes care of all scenarios such as declined card, retries on a failed transaction, change of card, etc.

Own customer experiencePersonalise the customer experience by communicating the subscription status and prompting the next steps.

More benefits of Subscriptions

You can onboard subscribers for your services from all around the world. Razorpay’s Subscriptions supports 100 currencies!

  • Offer your customer the option of a trial period with a subscription plan that automatically starts charging at the end of the trial period
  • Charge your customers a one time fee at the time of creating subscription before the actual billing starts
  • Add charges easily for any overhead expenses, extra services used etc. in the billing cycle
  • Allow your customers to upgrade or downgrade their subscription plans anytime they want, with proration
  • Offer your customers a variety of payment methods to choose from for the subscription. Subscriptions supports credit cards, debit cards, e-mandate, and more.

 Keep your customers coming back for more with Razorpay Subscriptions.

Smart Collect – Automate NEFT, RTGS, IMPS payments

Razorpay smart collect payments solution

Does Your Business Collect NEFT/RTGS Payments? If so, you’d know that reconciliation is a huge problem – it’s manual, tedious, time-consuming and error-prone, leading to poor accounting of cash flows. 

Razorpay Smart Collect is a powerful system to easily automate reconciliation for NEFT/RTGS payments through a real-time virtual account and Virtual UPI ID system. Create as many virtual accounts as you want and receive one or many payments per virtual account. Easily customize these as per your business use case.

Features 

One time payments – Accept a single, large payment from a customer via NEFT, RTGS or IMPS. Close the account as soon as you receive it. 

Regular payments – Create dedicated virtual accounts for each customer and easily keep track of each incoming payment.

Event-based payments – Create unique virtual accounts for each campaign, efficiently segregating the incoming payments for maximum control and visibility. 

Seamless Refunds – Send out full or partial refunds to customers via Dashboard & API and your customers will receive it directly in their bank accounts. 

Custom Account Numbers – Create account numbers the way you want. Highlight your company name or assign account numbers specific to customer IDs or any other custom fields.

Benefits of using Razorpay Smart Collect

  • Generate Virtual Accounts and Virtual Payment Addresses on-demand and accept payments via bank transfers or UPI
  • Create unique VA and VPA tagged to individual customers
  • Manage payments through Merchant Dashboard or via API
  • Real-time payment notifications via Webhooks
  • Instantly refund payments. Improve customer experience and trust by cutting down refund period from 3 business days to a few minutes

Popular business use cases

  1. Fee Collection – Accept payments with multiple payment modes to a virtual account
  2. Loan Repayment – Accept multiple loan repayments 
  3. Payments for Investments Plans – Receive payments towards investment plans
  4. Insurance Payments – Accept payments of insurance premiums periodically

Invoices – Get paid on GST compliant invoices 

razorpay invoices payments solution

Let your customers know what they are charged with a detailed breakdown of the expenses, including price, taxes, and discounts. Provide your customers with accurate information and yourself faster access to funds through online payments.

Razorpay Invoices provides customers with a seamless buying experience through beautifully designed invoices that speak your brand language.

Features

GST compliant – Add GST, discounts and shipping details, all in an invoice and let our invoicing solution do the calculation for you.

Partial payments – Enable partial payments for your customers at the time of invoice creation directly from the dashboard

One time effort – Save time and effort on entering the same line item again, instead, save it as a template and use it across invoices

Download Option – Let your customers save and download a .pdf version of invoices for future reference. With Invoices, you can create and send GST compliant invoices that your customers can pay online instantly.  Get paid faster and improve your cash flow.

What more?

If your business has a very unique use case, you can try a combination of products to help you meet your goal. All you have to do is let us know and we’ll figure things out for you.

[Suggested read: 7 Reasons why Razorpay is Right for You]

End of the road

And, there you have it! All of Razorpay’s payments solutions to accept payments from your customers, broken down to understand what kind of product you would essentially use for your use case. What are you waiting for? Get started now!

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India Sees 383% Growth in Digital Payments From FY’18 to FY’19 – The Era of Rising Fintech

era of rising fintech

We’re back with yet another fascinating edition of ‘The Era of Rising Fintech’! 

With the end of September, we wanted to give you a little glimpse of how digital transactions are carried out in the country. We’ve focused on how Indian businesses accept payments, as well as how Indian consumers transact. We also wanted to highlight some of the noteworthy developments in the payments space.

Since Razorpay is a payments platform, it oversees huge volumes of digital transactions of a multitude of businesses. All findings in this report are based on digital transacts on the Razorpay platform carried out from January till September.

(JFM: Jan-Feb-Mar, AMJ: Apr-May-Jun, JAS: Jul-Aug-Sept)  

Let’s spring right into it!

The growing demand for digital payments

Consistently, there has been an amplifying demand for digital payments over the past few years. We’ve undoubtedly seen the adoption of UPI and other fintech innovations making banking and payments very experiential for both consumers and businesses. 

  • According to the report, India observed a whopping 383% growth in digital payments from FY’18 to FY’19.
  • Total digital transactions in volume terms recorded a growth rate of 58.8% during 2018-19, on top of a growth of 50.4 percent during 2017-18 – Reserve Bank of India

Although demonetization in November 2016 did not directly aim for India to become a cashless society, it did play a big part in it. The dearth of physical currency gave rise to wallets, just about when mobile payments gained a firming foot. 

Just then, NPCI released their innovation – UPI (Unified Payments Interface) which was much ahead of several money centers all around the world. Quickly, a hundred and odd number of banks joined hands to provide UPI as a payment mode to the merchants and consumers. This pretty much created a revolution and played a massive part in the era of rising fintech in the country. 

And ever since, cashless India has been a model for the rest of the world.

[Suggested reading: UPI Overhauls Cards as the Preferred Payment Mode at 45%]

P2M Digital transactions in Jul-Aug-Sept

Like we mentioned before, we enable payments of over 600,000 businesses all across India and oversee immense volumes of digital transactions. Based on these transactions, we were able to analyze and gain intricate insight into payment trends throughout the country. Here are some crowning points.

  • In JAS, we observed that most consumers preferred digital payments like cards (43.5%), UPI (40.4), netbanking (10.9%) and other online payment modes over cash transactions
  • While cards contributed a bigger chunk of digital payments, we noticed that the usage of cards declined by 9% while UPI grew by 26%, from AMJ to JAS
  • While UPI grew, Google Pay became the most preferred app with a hefty hand out of 62% of the total UPI transactions.
  • PhonePe followed Google Pay by chipping in 25% while PayTM and BHIM did their part by 6% and 5% respectively

As we analyzed the transactions carried out in JAS, we picked up on the top 3 industries that contributed the most. 

  • Food and beverage industry took the largest cut at 25% while financial services and tours and travels contributed 21% and 15% of the total digital transactions
  • Logistics sector saw 161% growth in terms of online payment adoption, followed by government bodies showing 109% growth. Financial services also climbed up the ladder by 57%

The Era of Rising Fintech – Hyderabad

The top 5 digitized cities of India in terms of payments are Bangalore, Hyderabad, Delhi, Mumbai, and Pune. While we discussed the digitization of Pune (JFM) and Chennai (AMJ) previously, our pick for JAS is Hyderabad. Let’s plunge into the details of Hyderabad’s digital payments ecosystem in JAS.

  • Hyderabad is the 2nd most digitized city in terms of payments. Also, Telangana is the 5th highest contributing state in the total volume of digital payments carried out all over India
  • UPI has mostly taken over digital payments in the country by a storm. As UPI augmented itself by 222% from January 2019 to September 2019, it became the most preferred payment mode in Hyderabad.
  • While there are many UPI apps, Google Pay continues to be the most preferred UPI app in Hyderabad, too. The app was used to carry out 59% of the total UPI payments in JAS
  • PhonePe was a close contender contributing 32% of UPI payments made in Hyderabad n JAS. The app also grew in terms of adoption by 84%, seeing the highest growth percent amongst its competition
  • In JAS, we noted that consumers preferred cards to make most of their online payments. 41% of payments were made using cards, beating UPI (39%) and netbanking (18%) in the quarter. In September, UPI became the preferred payment mode with a contribution of 45%
  • Hyderabad saw the highest number of online payments in Telangana. It’s also interesting to note that cities like  Secunderabad, Khammam, Karimnagar, Warangal, and Palwancha also contributed their share to Telangana being the 5th most digitized state

The future of digital payments 

After understanding the customer preferences, payment innovations ecosystem of payments and contribution of various industries, we wanted to provide some insight about what’s in store for Hyderabad.

  • With the digital lending sector in India projecting growth by $100 billion by 2023, we can surely expect a lot from the 2nd most digitized city in the country
  • UPI also has the potential to offer much more than it already has! The payment mode can lead the way with much more customized features that can help increase financial inclusion all over India
  • With the government GST incentives and Merchant Discount Rate (MDR) cuts, we can expect an increased and sustained merchant acceptance in Hyderabad

Roadblocks along the way to digitization

India has shown remarkable strides lately, ever since newer fintech innovations became accessible to consumers. Like any other innovation, there certainly are several roadblocks along the way.

  • After analyzing digital payments, we can say that there aren’t enough incentives to promote digital payments. Cashback and scratch cards don’t cut it anymore
  • There is an insufficient collaboration between banks and fintech bodies
  • Smaller merchants need POS terminals along with cheaper payment options

[Suggested reading: Challenges for Banks and Fintech to Work Together]

Over to you

We’re definitely on the way to seeing India becoming a digital superpower. Many cities have already contributed significantly towards its becoming, while tier 2 and 3 cities are slowly gaining momentum. 

We’re very excited to see what’s next – with our next edition and a whole new city!

razorpay era of rising fintech report

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