Money Movement Decoded for Online Gaming Companies

payment solutions for online gaming companies neobanking razorpay

The online gaming industry has seen a rapid expansion in recent years. It owes its growth to many attributes like increased smartphone penetration, accessible data, affordable tech, and the rise of the digital payments user base. 

Lately, we’ve seen the upsurge of several popular online games like PUBG, Fortnite, and more, successfully stirring up the interest of the youth of India. With more and more gamers joining the bandwagon, the demand for online games has increased. 

This has resulted in the outset of many online gaming companies in India. payment solutions for online gaming companies neobanking razorpay

The many forms of online gaming

“Online gaming” has multiple interpretations today. With so many different modes of gameplay, genres, channels, and player formats, the categories of online gaming are diversified.

However, among the most popular categories are freemium games and online real money games.

Freemium games

The word freemium is a fusion of free and premium. Freemium games are free to play, but compel the gamer to unlock features and customisations by paying the company. These types of games have mostly been sought after in recent times.

Online real money games

Online games that gamers play to win real money, which can be transferred to their digital wallets or bank accounts are called online real money games. These games are in high demand and are increasingly getting noticed by gamers.  payment solutions for online gaming companies neobanking razorpay

Online gaming and digital payments

Online games offer a ton of advanced features to be unlocked by gamers. And, Razorpay has already powered digital payments to several online gaming companies. 

Freemium games with in-app purchases are usually powered by Razorpay Payment Gateway, and the games that require month on month payments to unlock special features, typically use Razorpay Subscriptions. 

Let’s see how Razorpay powers online real money gaming companies.

There are two segments of online real money games. 

  1. Pay to play – where the gamer pays the company before playing
  2. Play to win – where the gamer wins money after playing

Play to win games are all the rage right now. Backed by well known VCs like Sequoia, RummyCulture, Dream11, MPL, Howzat, and more are very famous for their play to win games. 

In both these segments, instant gratification carries a lot of weight for these games to be as successful as they are. And that is simply because of the nature of these games. 

A gamer can collect their winnings after completing a game against an opponent. This means, it is not a continuous, cumulative victory, but a timed one. The gamer does not have to accumulate a certain number of points to collect their winnings. This means they might as well collect their winnings after the conclusion of each and every game. 

So, let’s talk about how these online real money gaming companies pay their winners. 

Essentially, rewarding the winner is considered a payout, a customer payout in particular. And, most of the time, there are many problems associated with making payouts traditionally.

  • Gaming companies need to make sure that the payouts are processed within banking hours so that the gamers get their money as early as possible
  • They have to wait out the cooling period after adding each one of the bank account details
  • UPI and IMPS based payouts have a cap on the total number

This is exactly why online gaming companies need a better solution so they can make timely payouts and ensure that the gamers get their winnings instantly. RazorpayX, a neobanking platform, helps with exactly that.

RazorpayX Payouts

Payouts helps automate the process of making payments to the winners, getting rid of manual intervention. 

  • The winners can be paid instantly via IMPS, UPI, without having to worry about bank hours
  • There is no cooling period, companies can make payouts to accounts immediately after adding them
  • No cap on the number of transactions

[ Read more: How to Simplify and Automate Payouts ]

Most online gaming companies do not require the gamer’s bank account details while setting up a gamer profile. So, how can they make sure the winners are awarded?

Again, RazorpayX has a solution.

RazorpayX Payout Links

Payout Links is the easiest and fastest way online gaming companies can disburse funds into the winner’s preferred bank account via IMPS or UPI. 

A Payout Link can be created on the RazorpayX dashboard. If there is a need for multiple Payout Links, APIs can be used. 

Upon sending the Payout Link to the winner, all they have to do is verify themselves via OTP and enter their preferred bank account or UPI ID. On successful entry of their account details, they receive their refund almost immediately. They will also be notified if there is an error with the account details they have provided, so they can re-enter the details or try with a different account.

The verdict – RazorpayX for online gaming

With RazorpayX, gaming companies need not make the winners wait for 5 to 7 business days to collect their winnings.  payment solutions for online gaming companies neobanking razorpay

2020 – The Year for Neobanking in India

RazorpayX - neobanking platform

Banks have been around forever. In India, the history of banking dates way back to 1750 BC. We have traditionally been dependent on banks for all of our financial needs, as individuals as well as businesses. 

Banks have offered us everything that we have required – from current or savings accounts to credit cards, various types of loans and also, insurance and investment plans. But with fintech startups, the dependency on traditional banks for these services is gradually decreasing, especially for businesses.

These new-age banking services providers are commonly known as neobanks. They are using technology to unbundle traditional banks. And how!

Lately, “neobank” has become somewhat of a buzzword in the fintech space. Quite a few neobanking platforms have emerged in the last few years, creating a storm at a global level. The term itself has gained so much momentum because of the media that it has become a hot topic.

Banking has moved forward in leaps in bounds in the past few years. The way businesses and individuals consume financial services has changed significantly ever since neobanking, API banking, and open banking became prominent in 2016. 

It’s no secret that traditional banks are on the front of increased competition from many arcs of the digital world. Neobanks are expanding rapidly, using state-of-the-art tech to win over customers, who demand simpler, faster, and more efficient financial services. In recent years, neobanks have become the next big thing in fintech. 

So, we wanted to bring you a snapshot of how neobanks are on the way to transform financial services globally. RazorpayX neobanking platform - RazorpayX - what is a neobankrazorpayx - neobanking platform

The expansion of neobanking platforms

Fintech startups all over the world, especially in banking and financial services have over 15 million consumers, out of which, over 50% of the consumers are acquired by neobanks. 

The incredible growth opportunity for neobanking platforms is sprouted by their low-cost business model, which has resulted in high adoption by small and medium-sized enterprises, as well as businesses with variable incomes and earnings, and businesses that embrace innovative tech. 

The speed of neobank adoption has intrigued investors, corporates, as well as venture capitalists all over the world. 

[ Read more: Everything You Should Know About Neobanks ]

Neobanking in India 

Globally, neobanks are entirely digitised. But, in India, regulations don’t permit 100% digitised banks. Fintech companies showcasing themselves as neobanks offer services that are built on top of traditional banking services. 

Regulatory framework for neobanks in India

Neobanks in India emerged as a comprehensive aid for banking and financial services, as well as for small and medium-sized businesses. But, RBI’s regulatory policies neither agree nor disagree with the factuality of fully digitised online banks – meaning, in India, neobanks aren’t 100% digital. 

Back in 2018, RBI kicked all forms of cryptocurrency to the curb, with an explanation that crypto transactions would be a threat to security. Also, other tech innovations like online currency and associated banking services appear to have come to a halt. This has put a damper on the tenacity of new business models since regulatory guidelines are muddled. 

However, in August 2019, RBI ushered in a new regulation for the testing of new fintech innovations in a restricted ecosystem, which is motivating for emerging fintech companies. 

Business banking with neobanking platforms

Neobanks have taken business banking to the next level on the grounds of their enormous range of offerings to businesses. 

Usually, businesses have to deal with dreary and dull processes involving payouts and disbursals. These processes take up many hours of manual effort owing to buggy software and complex infra systems. 

Neobanks are supported by the traditional banking infrastructure, and in return, neobanks help sell current accounts. With the partnership, neobanks provide all the benefits of traditional business banking, along with customised reports, flexibility for bulk upload, easier failure identification, scheduling of payouts, and so much more. And, RazorpayX is at the forefront of the banking revolution in India.

With RazorpayX, businesses can

  • Manage their contacts and end-to-end payout operations via powerful APIs
  • Get notified about their payout status and tracking codes through webhooks
  • Make 24*7 payouts, disbursals, and refunds through UPI, NEFT, RTGS, and IMPS
  • Recharge, store or transfer funds to their RazorpayX account for payouts
  • Offer 24*7 instant refunds and payouts to their customers and vendors etc., without any manual intervention
  • View financial summaries of all their transactions and drill down views of transactions at a contact level
  • Instantly access and download financial reports and summaries of their contacts
  • Get complete control and visibility of their finances with real-time summaries, without any help from financial analysts
  • Automate and execute payroll, compliance, and contractor payments with a dual tax regime compliant payroll software

The RazorpayX story

Traditional business banking is not the most efficient way to manage finances. And, several Razorpay merchants told us how suboptimal their business banking experience is. Since we were already spearheading payments, we thought about giving business banking a shot.

We conducted a survey among 1500+ CxOs and spoke to 400+ merchants to understand their business banking experience.

  • 64% of companies believe their payment service providers are best equipped to solve their payment challenges as opposed to banks
  • 10x as many companies polled believe payment service providers innovate better than banks
  • 36% of businesses believe manual dependency and reconciliation are the biggest challenges in their current money management

And so, we started our neobanking journey by creating a whole new platform on which we could build products and integrations. We created an entire API and dashboard payouts platform over a virtual account setup that merchants could use during the early access in 2018. As we scaled, we realised current accounts are the heart of the product to support higher volumes of transactions.  razorpayX dashboard - neobanking platform During our event FTX 2.019, we announced RazorpayX’s expansion into current accounts, payroll, and corporate credit cards. 

We built RazorpayX with Current Accounts in partnership with RBL Bank and included all standard banking services like cheque book, debit card, and accounting statements. For payroll, we acquired Opfin, a payroll and HR management software company, that also manages tax filing and compliance via a unified platform, without having to hire any external vendors.

We wanted to take this platform just a little bit further with Corporate Credit Cards.

We’re partnering with banks and networks to build corporate credit cards from the ground up that offer immense flexibility with limited-time credit period and auto-repayment for businesses. These cards powered by our credit intelligence engine can be used to make payments towards Google Ads, Facebook Ads, AWS, Business Travel, and so much more.

[ Read more: RazorpayX – How We Built a Startup in a Startup ]

The future of banking with RazorpayX

Online real money gaming is a forthcoming industry in India. The key aspect of making a great game that attracts a huge customer base is to ensure the game winners are rewarded, and really fast. The business model is all about providing its customers with instant gratification.

But, relying on netbanking and other manual payment modes are not the best way to go about disbursing the prize money to the winners. RazorpayX has helped companies like Mobile Premier League, RummyCulture, Pokersaints, and many more to transfer winnings immediately, and with ease.

The year for neobanking

There are over 42.5 million small and medium-sized businesses throughout India, constituting nearly 95% of the total industrial units in the country. But, only 47% of these businesses have been able to access tools for payments, disbursals, and other vital processes.

Furthermore, about 23% of SMEs use ERP software and CRMs. This means, there’s a huge market opportunity for neobanks, especially since they have a lot to offer. 

The gig economy of India has over 15 million contract workers and freelancers, who actively boost the growth of startups. And just like SMEs, only about 67% of the gig economy has access to innovative tech that helps with money management. Neobanks can help the gig economy by enabling independent workers with customer management and banking services.

Over the last 3 years, India has seen the rise of neobanks with 811 by Kotak, Yono by SBI, RazorpayX, Open, NiYo, and more. And, these neobanks have been successfully helping SMEs, large enterprises, and the gig economy with billing, cashflow management, disbursals, vendor management, and so much more.

Special Report: The Impact of Lockdown on Digital Payments

covid-19 era of rising fintech

Life during a pandemic is not something we anticipated. With social distancing, these trying times have affected the way we go about our daily lives. While we are still confined to our homes, trying to keep safe from COVID-19, the distress still persists. The pandemic has also devastated businesses across industries, including digital payments.

We analysed the digital payments made before and during the lockdown for our 5th edition of The Era of Rising Fintech report and gathered some noteworthy observations and insights.  

All findings in this report are based on digital payments made on the Razorpay platform during March and April 2020.

Key highlights

  • There was a 180% surge in NGO donation transactions in the past month since the beginning of the lockdown
  • During the lockdown, industries like utilities (bill payments), IT & software, and media & entertainment grew by 73%, 32%, and 25% respectively
  • Industries like travel, real estate, and food & beverage, and  groceries were hit the hardest as they observed a slump of 87%, 83%, 68%, 54% with closed establishments and cancelled travel plans
  • Mobile wallets exhibited impressive growth in the lockdown period, with Jio Money growing by 66%, Amazon Pay by 63%, and Paytm by 43%
  • In tier 2 and 3 cities, the mobile wallet wave swept over as they continued to witness a massive surge in wallet transactions for bill payments
  • Before the lockdown, UPI at 46%, remained the most preferred payment mode and continued to be so at 43%, 30 days into the lockdown
  • We firmly believe that fintech companies are likely to gain the profound trust of Indian consumers in the months to come
  • With tier 2 and 3 cities rapidly adopting the digital route for making payments, we foresee a gradual rise in digital transactions across industries

Fintech: 2020 and beyond

  • The trade impact for India has been estimated to be $348 million, according to the UN Conference on Trade and Development
  • We believe that the pandemic may boost demand for fintech-related services for consumers and offline businesses
  • We can also anticipate an expansion in various spheres like consumer banking, neobanking, as well as wealth management 
  • Investments in financial technology and opportunities for partnerships are likely to grow manifold as the fintech industry continues to burgeon steadily

 

Upgrade to a Dual Tax Regime Compliant Payroll Software this Financial Year

dual tax regime opfin

Earlier this year, the Finance Ministry of India introduced the dual tax regime, a whole new tax regime to the existing one, bringing in prevalent changes to the way taxes are calculated for employees from the financial year 2020-2021.  

Since the financial year has just begun, businesses need to quickly upgrade to a payroll software that is compliant with the dual tax regime and automate their payroll process.

Let’s talk a little bit about the tax regime.

As opposed to the higher tax slabs with benefits and exemptions, the new tax regime is all about lower tax slabs, but without the benefits and exemptions. The Union Budget 2020 allows employees to choose from the two options.

dual tax regime payroll software

  • The new income tax for employees whose income lies between ₹5 lakh and ₹7.5 lakh is 10% whereas according to the old regime, the income tax is 20%
  • The next slab is for the range between ₹7.5 lakh and ₹10 lakh, where the tax is 15% while the tax is 20% in the old regime
  • Employees with income between ₹ 10 lakh and ₹ 12.5 lakh would pay 20% tax, which is reduced from 30% in the old regime
  • Finally, for income over ₹ 15 lakh, the tax is 30%

The perks of the new income tax regime

Lower taxes

Your employee can take home more money than before under the new tax regime since the taxes are reduced. Meaning, your employee need not exclusively invest in tax saving schemes.

Fewer compliances 

The new tax regime is very straightforward compared to the old regime. Except for NPS, savings interest from the post office, and PPF, benefits, and exemptions are cut off, making the tax filing process much simpler.

Flexible investments 

With the new tax regime, your employee can personalise their investments that provide better fluidity to withdraw their money.

Like we mentioned before, the benefits and exemptions are nearly cut off. HRA (House Rent Allowance), housing loan interest, investments like life insurance, provident fund, etc. (Section 80C investments), medical insurance, education loan interest, savings bank interest, and leave travel allowance are removed.  

What exemptions are still available in the new regime

  • Leave encashment on retirement
  • Scholarship received for education
  • Funds received on VRS up to ₹5 lakh
  • Maturity amount and short term withdrawals from NPS
  • Pension commutations
  • EPF
  • Death, retirement benefits

How to choose between the two income tax regimes

Your employee should consider both the advantages and disadvantages of the new tax regime in comparison with the old one. They should calculate their deductions, income after taxes, and the total tax for their annual income, based on both the regimes. 

This will help them understand what works for them the best. 

How the new income tax regime will impact your payroll 

Payroll compliance is absolutely important, especially when there is a change in regulations. Having an out-of-date payroll software will definitely not help you with change management and will limit your productivity since payroll can be largely time-consuming if done manually. 

Also, let’s not disregard the fact that your HR team will have to spend hours and hours every month to keep step with compliance, whereas they could be contributing to the business. 

If you’re wondering what can help your business minimise impact, let’s introduce Opfin, a payroll software that will put an end to all your payroll processing troubles. 

Opfin is compliant with the dual tax regime. The payroll software allows your employee to choose their preferred regime during the time of their investment declaration for the financial year. 

They can also see their projected taxes for the year based on their income and regime so that they can make an informed decision keeping their tax liabilities and savings in mind. dual tax regime Your employee can then file their declarations and edit them based on their regime. Opfin also recommends a breakup predicated on their salary, so that they’re aware of the benefits of both regimes. 

This helps you completely automate your payroll process without having to worry about the dual tax regime compliance, without any manual intervention.

[ Suggested read: Automate Your Employee Salaries with Opfin ]

Opfin for all your payroll needs

Relying on outdated payroll software will create a big setback for your business.

Opfin will help you carry out your business operations without any interruptions since the software scales itself and helps you stay up-to-the-minute with changing regulations and compliance. 

Decoding Payroll – Why Businesses Should Automate Employee Salaries

RzorpayX opfin payroll software

Payroll is one of the most important financial operations a business carries out, no matter the size of the company. For businesses, it’s crucial to ensure that their employees are being paid without any delays.

Having a smooth, reliable, and error-free payroll process directly reflects upon the morale and the financial stability of the business. 

But, do you trust your payroll process to be the best?

What is payroll?

Payroll is the total amount of fees paid by a company to its employees, contractors, and other workers. It’s an organisation’s biggest disbursement, not to mention, the most time consuming human resource task.

Payroll is typically processed over a specific period of time. Organisations differ in the way they process payroll. While the process is different, they all need to work in a highly organised system, be updated with the latest rules and regulations, and a highly structured plan. 

Why your business needs a payroll software

Payroll processing is long, tedious, and so time consuming that it takes away your efforts from other important business tasks. Processing payroll by yourself means never-ending administrative and tax-related responsibilities.

Plus, you need to be somewhat of an expert in tax law and payroll if you don’t want any run-ins with the IT department. Using a payroll management software will help unscramble the process so you can focus on what’s important. Razorpayx opfin payroll software Businesses end up spending too many hours on manual efforts on payroll processing every single month. A payroll software enables you to spend these hours on something more productive. Processing payroll manually is not simply time consuming, but is prone to human error, too.

You have to take into account salary structure, working hours, overtime, vacation days, etc, making manual calculations as complex as can be. 

What you need in a payroll software

You can find two types of offerings in the market today. 

SaaS tools

There are a few tools available that are mostly focused on effective processing. These tools help with salary disbursal and compliance fees like PF, PT, TDS, and more.

This does not mean your entire payroll is automated, someone still has to oversee the process and the disbursal, while making sure compliance is upheld.

Payroll agencies

Several agencies provide services where you outsource your payroll process. These agencies collect your employee database along with all the details they’ll need to calculate their salaries. They either process it manually or using their inhouse tool.

You’ll need to approve the calculations so that they proceed to pay your compliance You need the best of both offerings to have a fully functioning and automated payroll system. 

Opfin – a payroll software that has decoded payroll processing

If you’re wondering what’s so different about Opfin, let’s break it to you.

Opfin works on a Direct Deposit model in which Opfin processes payroll, as long as you maintain your balance. Think of it like a wallet you deposit your money into using which your payroll is carried out. It’s designed to be highly intuitive and easy to use, that takes away all the redundant steps. 

The upside is, you don’t have to worry about TDS, PF, ESI, and professional taxes, ever again. Plus, your employees are always paid on time! Next, you can pay your contractors and pay TDS automatically. Opfin deals with quarterly filings, form 16s, and 24Q.

Opfin gives more power to your employees by allowing them to claim their reimbursements and tax exemptions on their dashboard, based on which their monthly payroll is adjusted automatically. 

Who is Opfin for

A business should be able to carry out its processes without having to interrupt them for payroll.  Opfin helps you track attendance, time and leave management, along with vendor and contact payments.

So, any business that is looking for a non-intrusive payroll processing, needs Opfin. 

The Types of Payouts and How Businesses Can Simplify Them

Razorpayx payouts

A structured financial management system is the pillar of any well-heeled business strategy. As much as a business would like to focus on great cash inflow, making payouts is also an equally crucial task.

And, leveraging out-of-the-box technology to streamline the process is what every business should do.

Let’s take a step back.

What is a payout?

A payout is a taxable payment made by a business to its stakeholders from the company’s current or retained earnings. In traditional business banking, the methods using which a company can process payouts are IMPS, NEFT, RTGS, and UPI.

What are the different types of payouts?

types of razorpayx payouts

Vendor payouts –  payments made by a business to a vendor (supplier) for the goods or services provided

Partner payouts – a business pays a commission to another business or a contractor for cross-selling products or services

Employee payouts – a business pays its employees for their services

Customer payouts – Cashback, rewards, and refunds made by a business to its customers

Common problems with payouts

Have you ever had to make a crucial payment to your vendor or customer, but you couldn’t process it because of fixed banking hours? Delayed payouts often lead to interrupted service. Not to mention, they’re just embarrassing.

But it can happen more often than not for many reasons.

  • You can only process payouts via NEFT and RTGS, and only within banking hours
  • Uploading contacts in bulk to make a bulk payout is very complicated because of complex file formats
  • There’s a hold-up upon adding a contact for a payout
  • You can’t verify the validity of a bank account before making a payout
  • Limitations on bulk payouts when made via UPI and IMPS
  • A low cap on TPS
  • No easy way to track and identify errors because of complicated and vague error codes
  • Reconciliation can be very difficult in the case of refunds and failed transactions

So, how can this process be made simple so that businesses don’t have to go through these setbacks? 

Let’s introduce to you, RazorpayX Payouts

razorpayx payouts

Imagine solving your payouts problem in just a matter of minutes, and further simplify all of your business banking operations! That’s exactly what RazorpayX Payouts can do for your business.

Whether you’re making a bulk payout or just a one-off, RazorpayX helps you move money seamlessly, without you having to worry about banking hours. RazorpayX Payouts is that one single platform that automates your business banking operations to such an extent that you don’t have to worry about making any manual effort.

How does RazorpayX simplify your payouts process?

  • Make payouts, disbursals, and refunds via UPI, IMPS, RTGS, and NEFT, at any time of the day, instantly
  • No hold-up upon adding a contact; transact immediately
  • Upload any number of contacts in one go, without dealing with confusing file formats
  • Create payouts in bulk via APIs or directly from the dashboard
  • Offer 24*7 instant refunds to your customers and vendors etc., without any manual intervention
  • Add multiple team members with access control and secure payments with 2-factor authentication
  • With intelligent error code mapping, identify errors without any trouble
  • Reconcile refunds and failed payments in ease
  • Track, automate, and accelerate money movements and make impactful business decisions

How to make a payout via RazorpayX?

You can make payouts on RazorpayX in five simple steps.

  1. Signup and activate RazorpayX account
  2. Add funds to your business account
  3. Create contact
  4. Add fund account to the contact
  5. Create payout

What kinds of payouts can RazorpayX handle?

Bulk payouts You can make your payouts in bulk, all at once. Simply upload all your contacts, sit back, and relax. RazorpayX will take care of all your outflow.

Payouts queue – If you need to make a payout and your account is low on funds, RazorpayX will queue your payouts that go over balance, and process your payouts when you add funds to your account.

Scheduled payouts (coming soon) We’re working on helping you schedule your payouts well in advance, so you don’t ever have to worry about delayed payouts.

Payouts, simplified!

Like we said before, making payouts is as important as cash inflow. Never worry about delinquent or delayed payouts ever again! Make fast, effective payouts to your customers, vendors, employees, and partners, and track all forms of money movement with RazorpayX.

What You Need to Know About Banking as a Service (BaaS)

banking as a service BaaS

Banking as a Service (BaaS) is yet another fintech innovation that is enabling bank and fintech collaborations. The tickler is, many of these innovations are confused for another.

We’re here today to clarify what Banking as a Service is and what it isn’t.

The banking sector has gone through somewhat of a metamorphosis in the last few years. With fintech players entering the market, this transformation has become unstoppable. Financial services are changing in a way that they’re creating new products, channels, partnerships, and opportunities. Banking as a Service plays a significant role here, at the core of it all.

What is Banking as a Service?

BaaS is an end-to-end approach that facilitates fintech companies and other third party organisations to connect with a bank’s system employing APIs.  This helps organisations build innovative financial services upon the provider bank’s regulated infrastructure while enabling open banking services. Banking as a service BaaS

How is Banking as a Service different from traditional banking?

To understand this, let’s break down the functions of a bank – holding money, remittance, and payment processing. For banks to support these functionalities, they need to put in a ton of investment and constitute the necessary infrastructure. 

The processes, along with the complex infrastructure, end up creating gridlocks. And these gridlocks are what have created an immense thought and application for fintech companies and non-bank organisations towards building financial services — partnering with banks instead of building these financial services from the ground up.

How does Banking as a Service work?

Banking as a Service allows third party organisations to draw off of the existing banking services through APIs that communicate between banks and third parties. These APIs allow the use of these banking services by fintech companies, programmers and developers, and other non-financial companies.

This allows them to build their own features as a layer on top of the existing banking services.  In simple words,

  1. Fintech company/individual pays to use BaaS
  2. Bank/financial institution which is a BaaS platform opens its APIs 
  3. Fintech company/individual builds innovative financial services using these APIs

Banking as a service BaaS

[ Also read: The New Age Ways of Business Banking ]

What are the factors influencing BaaS?

While fintech is growing and revolutionising the way financial services work today, there are a few key aspects that have led to the emergence of BaaS.

  • Banks are trying to catch up to the speed of fintech companies. Or, banks are partnering with fintech companies to innovate financial services
  • Startups and SMEs are starting to leverage easier and effective business banking
  • The digital transformation and mobile-first approach that has soared over the recent years has played a phenomenal role in influencing BaaS
  • Business architecture of banking is evolving to a much more modern system that is inclusive of newer tech and methodologies
  • Banking regulations have seen an evolution that has further promoted a healthy growth of industrialisation

How do businesses benefit from BaaS?

  • BaaS helps creates new sources of revenue for businesses by enabling cross-selling capabilities because of API driven facilities
  • With BaaS, businesses can compartmentalize business logic and data, and reduce time to build and ship apps
  • Businesses innovate much more by means of capitalizing on APIs of their own, along with third parties
  • Building products and services using API ecosystems can drastically increase Customer base

Banking as a Service vs open banking

The BaaS model is often confused with open banking since both models involve the use of APIs to communicate among banks and fintech companies. But in reality, both models serve completely different objectives. 

Banking as a Service: Businesses integrate complete banking services into their products

Open Banking: Businesses use only data for their products

Industry impact of Banking as a Service

BaaS has created quite a trend in the fintech industry. Many countries around the world have seen a rise in the latest fintech buzzword – neobanks. 

[ Suggested reading: What is a Neobank? Everything You Should Know ]

Neobanks help businesses manage their entire financial operations by providing more transparency and options, along with real-time capabilities. RazorpayX has enabled businesses like Cure.fit, MPL, Dunzo, and more, to make payouts at scale while keeping the costs low.

RazorpayX Current Accounts takes business banking further by including all standard banking services like debit cards, accounting statements, cheque books, and more.   

Many neobanks and challenger banks looking for an alternate source of revenue have also opened their doors for other non-financial companies to use their APIs. 

More than just creating a source of revenue, BaaS has also enabled legacy banks to grow a relationship with emergent as well as fintech giants. This further helps legacy banks to catch up to what some of the fintech companies are doing. 

Xperience the future of banking

Understanding the New Age Ways of Business Banking

business banking

Banking is the most fundamental form of managing finances. Whether your use is personal or official, you rely on banking and its services. And, if you have a business of your own, you definitely know the importance of business banking. Today, we’ll take a look at business banking and understand the new age forms of using these services. 

What is business banking?

Business banking is the process of a third party managing your company’s finances by providing loans, credit, savings, and current accounts that are especially designed for businesses instead of individuals.

Business banking helps keep your funds safe while providing you with a clear view of your business’s financial health. You also get additional perks that you won’t receive with a personal account.

Methods of business banking

Business banking can be carried out in a few ways.

A physical branch – This is the traditional way of business banking where are your transactions will be processed at a branch.

Online banking – This method of banking has become increasingly popular because of the ease it provides to the customers.

In online banking, neobanking and open banking have opened up a whole new avenue of services that primarily focus on experience while providing your business with the best possible solutions for money management. Let’s take a closer look.

What is neobanking?

It is a type of digital bank that does not have any physical branches. Unlike a traditional bank that has a branch at a specific physical location, a neobank is entirely digital and online.

Think of a neobank as a cluster of financial service providers who cater to today’s tech-savvy consumers. Without a license of its own, a neobank leans on bank partners to provide bank licensed services to its customers. 

How does neobank help with business banking?

Often, businesses have to deal with tedious, never-ending processes that involve disbursals and payments. These processes result in hours and hours of manual efforts due to buggy software, complex infra systems, and many other reasons. This complexity may further grow into fiddly money movement views. 

Business banking via neobanks helps solve all these problems.

  • Account creation is a breeze since neobanks are completely online; they don’t have a storefront. All it takes are a few minutes and a couple of simple steps on a smartphone
  • With friendly UI, you can provide the best user experience to your customers
  • Business banking with neobanks helps take your business to any part of the world
  • Neo-apps help manage your finances by providing you with an overview of your expenses and a savings goal that matches your needs
  • You can save 10x time because of reduced manual effort and instant payouts
  • Make, track, control, and analyse all forms of money movement, all from a unified platform
  • You can also track and manage money movement to vendors, customers, employees, and more, with the in-depth Financial CRM 
  • Use APIs that are easy to deploy and integrate banking into payments and accounting infrastructure
  • Make informed, impactful business decisions with off-the-shelf analysis on payouts mode 

Neobanks also provide current accounts since they support higher volumes of transactions. 

Read more: Everything You Should Know About Neobanking

What is open banking?

Open banking involves sharing financial information digitally and securely, with customers’ approval. The use of APIs enables third-party developers to build services and applications around a financial institution. This drives speed while keeping costs low when compared to traditional systems. 

A combination of rich bank data and disruptive fintech results in financial products that provide both businesses and customers with the best of both worlds.

How can you improve your business banking with open banks?

The utilisation of APIs by banks has become very progressive all around the world, and for good reasons. With API banking, innovators have more flexibility to provide the best features and services to streamline financial services, thereby creating a surge of competition and innovation in fintech products.

Use cases for API banking

The most common use-case for API banking is payouts.

Lending: In the last year, the consumer lending industry saw a meteoric rise. And, with increased competition, the speed at which loads are processed became a top priority.

Today, RazorpayX has helped many lending companies reduce the average time to process a loan from 3 hours to 30 seconds.  

Gaming: Gaming is an industry in which instant gratification reigns supreme – winners want to claim their prize instantly. 40% of the real-money gaming industry in India uses RazorpayX to disburse winnings to their users.

Open banking provides solutions for all your business banking needs.

  • Have more transparency, knowledge, and options when it comes to managing your finances, and find a tailored solution that fits your business case 
  • With real-time capabilities, get enhanced visibility of cash flow, cash position, and more, across currencies
  • Reduce administrative hurdles with regard to managing your finances like applying for a business loan, checking your creditworthiness, and more
  • Be in control of your data as you decide how to use it or who gets to access it
  • Set targets on savings and expenditure, ration your finances logically while being able to account for each and every financial activity
  • Have a single view of all your finances while being able to control, track, and analyse all financial movements, all in one place

RazorpayX – business banking experience like never before

With RazorpayX, businesses can manage their entire financial operations and make timely payouts using our sleek dashboard or robust API.  Businesses like CureFit, MPL, Dunzo, and others use RazorpayX to make payouts at scale via API while keeping costs low.

This also helps them ensure their customers and partners are happy. RazorpayX Current Accounts takes business banking further by including all standard banking services like debit cards, accounting statements, cheque books, and more.

Conclusion

Surely, you’d want to manage your business’s money better, with more control and efficiency. Neobanking and open banking can help streamline and automate your business banking at scale.

The Fingerhold of Recurring Payments in India

Lately, India has seen an unparalleled expansion of online businesses. With the online commerce industry penetrating the Indian market by 74%, close to 329.1 million people are projected to buy goods and services via online stores by 2020. While consumers have a mountain of options to choose from, the need for more innovative consumption models also arise.

Why?

  • Convenience dictates consumer behavior. The ease of simply tapping a button to buy anything from anywhere, at anytime, is simply not beatable
  • Consumers prefer “accessing” something over “owning” it
  • Each consumer wants unique and personalised offerings, where they can tailor their experience
  • Consumers demand flexibility, not only “what” to consume, but also “how”

This has led us to where we are now with recurring payments.

The recurring payments model has a far reaching impact. It creates opportunities for product differentiation, taps consumer segments, and improves customer loyalty. And so, it’s no surprise that its growth is catapulting.

subscriptions data india razorpay recurring payments

Based on recurring payments on the Razorpay platform, here are a few highlights.

subscriptions data india razorpay recurring payments

Earlier in FY18-19, recurring payments began to gain popularity. Based on transactions on the Razorpay platform, there was a 78% growth in Q1 as many businesses got onto the bandwagon. What started out with standing instructions on credit cards soon got extended to debit cards, and in some cases, to netbanking as well. Physical NACH got transformed to eNACH.

All of this led to recurring payments receiving an even better response in FY18-19 growing by 96% in the second quarter of that year. By FY19-20, recurring payments have gained strong ground in India. Although Q1 and Q2 seem to show a smaller growth percentage, the growth is still significant because by then, most businesses were already using a recurring payments model.

Now, we anticipate recurring payments to sprout on all cards and UPI as well, which will further fuel the growth of this mode of payment.

“India is a key part of our international subscription growth.”

– Reed Hastings, CEO, Netflix

subscriptions data india razorpay recurring payments

Government initiatives have also been helping businesses move to the recurring payments model.

RBI opens up recurring payments on cards – A step ahead for digital payments

In September 2019, RBI turned out with a circular to engender the utilization of cards in making recurring payments. The circular says that starting September, buyers will have the option to utilize their cards to make recurring payments to businesses through e-mandate.

The e-mandate and additional factor of authentication (AFA) should be done just once at the hour of the principal transaction. All transactions taking place, later on, will be completed consequently without the prerequisite of rehashed AFA.

RBI has set a cap of ₹2,000 for such transactions and notified that they will be permitted on debit and credit cards, and prepaid payment instruments (PPI) including wallets.

This will empower consumers, just as traders, to significantly profit by getting rid of the issue of authenticating transactions on numerous occasions.

The RBI circular likewise specifies that consumers will be given the aid to set recurring payments for a predefined fixed value or a variable value. To guarantee that the cardholder is protected, they will have the option to determine the maximum transaction value as well.

Further, to defend the interests of the consumers, RBI said that they will get a notification through SMS or email a day prior to when the recurring transaction is to be completed. This notification, carrying details regarding the amount, date and purpose behind the transaction, will enable cardholders to drop the exchange, on the off chance they wish to do so. Obviously, the cardholder can pull back the e-mandate anytime too.

This facility will go far in further advancing digital transactions in the nation. All the more so, consumers won’t be required to pay any additional charges for setting an e-mandate for recurring payments through their cards.

eMandate for netbanking and debit cards

In April 2019, NPCI received final approval by RBI for the full-fledged implementation of eMandate for netbanking and debit cards. NPCI informed all the banks to take immediate steps and implement both eMandate variants within June. While the limit for each eMandate is set at Rs 1 lakh, the organisation is to review the limit.

This facility will allow businesses to greatly improve the customer experience while solving collection-related problems at the same time since eMandate will allow them to take a one-time consent from the customer to debit them subsequently.

UPI 2.0 with overdraft facility

The launch of UPI 2.0 in August 2018 was expected to bring many benefits to the payments landscape. In addition to current and savings accounts, consumers could have also linked their overdraft account with UPI to instantly make their transactions while the benefits of an overdraft account are retained. While the launch has not happened yet, it will be a gamechanger for recurring payments, given the immense popularity garnered by UPI in recent times.

What’s in store for recurring payments

“We believe that the recurring payments model will benefit not only customers, but businesses as well. With rapidly evolving consumer needs, this model will be a game changer for the Indian economy. Benefits like reduced transaction costs, convenience of upgrading or downgrading and reduced amounts of waste from unused assets will drive the adoption of recurring payments.”

– Harshil Mathur, CEO, Razorpay

Razorpay offers a full range of payment solutions for Recurring payments which include – recurring on cards, on bank account via eMandate or eNACH and Physical Mandate.

Interesting use cases for recurring payments on the Razorpay platform

 

recurring payments subscriptions trend data razorpay

Explore Razorpay Subscriptions.

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?

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  • Saved Card Database
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