Manage Working Capital Efficiently with 100% Visibility in Settlements

razorpaysettlements

Working capital is more than just a financial metric. It is the fuel that allows companies to run their day-to-day business operations. Its management, or mismanagement, can have a very direct impact on a company’s financial health and operational success.

For businesses that accept payments online, working capital is a function of incoming settlements from their partner payment gateways. As a result, a lack of visibility in settlement timelines can end up creating a plethora of  challenges for companies. Some of these include:

  1. Lack of clarity around settlement timelines: Wondering when their payments will get processed can keep businesses worried and make it difficult for them to manage working capital efficiently
  2. Expected settlement amount: Knowing how much they are going to be paid is a crucial piece of information for companies to plan their day-to-day operations
  3. Settlement status on the transaction page: It is important for businesses to know which transactions have already been paid for and which are still pending
  4. International payments: Answers to questions regarding the settlement cycle of their international payments and service fees on the same are crucial for businesses
  5. Route settlements: Companies organized in a parent/child network or partner network should not find it very difficult to keep a track of how much each entity will be paid and by when

Settlement UX changes

To equip our merchants with the armor to handle these challenges, we’ve made the following UI/UX enhancements on the Razorpay dashboard:

Transparency on upcoming settlements 

  • The amount and date for your next settlement will now be visible on your Home page, Transactions page & Settlements page
  • This is the go-to metric for businesses of any size to quickly assess when their next settlement will happen and how much will they be paid

Settlement cycle in the ‘My Account’ section

  • New to Razorpay and want to check what your default settlement schedule is? This information is readily available on the dashboard. No need to reach out to the support team
  • Want to start accepting international payments? Check your international settlement schedule through your dashboard to better manage your cash flow

 

Settlement status for each and every transaction

  • No more confusion on which transaction you have received payment for and which is still pending
  • This feature also provides visibility on service fees paid to Razorpay

The above changes will significantly enhance visibility on settlements and provide our merchants with the information they need to efficiently manage their working capital. 

An essential quality of a payments solution is the ability to scale to meet the growing demands for our customers. Transparency in settlements is another endeavour by us to give you the best payments infrastructure.

Are you ready to simplify the way you accept online payments? Sign up on Razorpay if you haven’t and leave all your payment worries to us!

Digital Payments in Delhi Grew by 235% in 2019 – The Era of Rising Fintech

Here we are with our 4th edition of ‘The Era of Rising Fintech’!

2019 was particularly a good year for fintech. Many innovations contributed to India becoming one of the most advanced countries in terms of digital payments. With the new year kicking in, we wanted to bring you a few insights on how India carries out digital transactions. 

As Razorpay oversees enormous volumes of digital transactions from all over the country, we were able to derive these insights based on how Indian businesses accept payments from their customers. Further, we also analysed how Indian consumers transact. 

All findings in this report are based on digital transactions made on the Razorpay platform from January 2018 to December 2019.

Here are a few nuggets:

  • Demand for digital payments have been at a consistent rise – 338% from 2018 to 2019
  • Bangalore was the most digitised city in 2019 with a contribution of 23.3% of the total digital transactions carried out in the year, followed by Delhi and Hyderabad at 10.4% and 7.4% respectively
  • UPI overhauled netbanking, cards, and other digital payments in September 2019, becoming the most preferred payment mode in India for the very first time
  • UPI also saw the highest growth at 885% in 2019 from 2018

Growth of digital payments in India

We enable payments of over 800,000 merchants from all over India. We studied all the P2M (Person to Merchant) transactions made in 2018 and 2019 throughout the country. Here are a few points that are mention-worthy.

  • Karnataka pitched in the majority of digital payments in both 2018 and 2019, at 30.7% and 24.6% respectively
  • After Bangalore (23.3%), Delhi (10.4%) and Hyderabad (7.6%) were the most digital payments friendly cities in 2019
  • In 2019, UPI exceeded its previous contribution at 38%, eating into cards’ share while credit and debit cards collectively contributed 46%
  • Google Pay’s reign continued through 2019 at 59%, becoming the most preferred UPI app of all time
  • Top sectors in 2019 were food and beverage (26%), financial services (12%), and gaming (8%) industries
  • Lending, mutual funds, and insurance were the top three verticals in the financial services industry, contributing 83%, 9%, and 8%

The Era of Rising Fintech – Delhi edition

In our last report, we focused on Hyderabad and its growth towards becoming one of the advocates for digital payments. Our star for the 4th edition is Delhi. 

We pooled in the transactions carried out in Delhi during 2018 and 2019 and inferred these insights.

  • Digital payments in Delhi saw a huge spike at 234.97% from 2018 to 2019 
  • In 2019, cards were mostly preferred for digital payments at 64% over netbanking and UPI 
  • UPI contributed 12% of the total digital transactions made in 2018, but saw a rise in adoption and usage in 2019 at 20%
  • Google Pay was the #1 UPI app in Delhi throughout 2018 at 39%, as well as 2019 at 50%
  • Amongst wallets, Ola Money (27%) was mostly used, followed by Amazon Pay (25%)

What we can expect in 2020

We, at Razorpay, love numbers. Over the years, we have spent long hours analysing numbers to draw insights, patterns, and trends. And, based on data and research, here’s what we can look forward to this year.

Trust is something fintech did not immediately win over from Indian consumers. But, with innovations that have made payments easier and much more secure, we believe more and more consumers will trust fintech, resulting in more innovations in 2020. 

We predict that this trend will continue in 2020, where UPI will thrive as the most preferred payment mode.

We also believe tokenisation of cards will cause the next big wave this year, helping credit card frauds go down. Also, consumers and businesses will become more aware of what neobanking is and how it can simplify financial operations. 

We can also expect the potential launch of next-gen NEFT that can lead to a higher degree of automation and features that conform to the global standards.

End of the line

India is becoming one of the leaders in fintech and digital payments. While tier 1 cities contributed to this growth, we are very excited to see tier 2 and 3 cities jumping on the bandwagon. 

Let’s meet again in our next edition of The Era of Rising Fintech, with insights about a whole new city!

fintech report razorpay delhi

Turnover of Over Rs 50 Crore? You Now Need to Accept Payments Using RuPay & UPI

The Indian government’s push for a digital economy is very much real. In the past couple of years, we have seen numerous endeavours from the government to drive the adoption of digital payments. The recent removal of MDR charges on transactions done using UPI and RuPay is a case in point. 

Coming on the heels of this move, the Central Board of Direct Taxes (CBDT) released a notification under Section 269SU that aims to increase the use of UPI and RuPay for business-to-business (B2B) payments. And why not? UPI has grown by leaps and bounds in the consumer payments space. Google Pay, PhonePe are now common household names and synonymous with P2P money transfers. It makes sense that the convenience and speed of UPI payments be utilized by businesses as well.

Hence, as per the government’s latest notification, businesses with gross receipts of more than Rs 50 crore need to provide the facility to their customers of making payments through UPI, UPI QR codes and RuPay debit cards. 

Here’s the circular for your reference.

Source: IncometaxIndia.gov.in

This notification under Section 269SU came out from the Central Board of Direct Taxes on 30th December 2019. It set the deadline of 31st January 2020 for businesses to install this facility into their systems. The penalty for not meeting this deadline has been set as a fine of Rs 5,000 per day from 1st February 2020 onwards.

The nitty-gritty of the notification is that the rule has to be followed by businesses where the turnover exceeds Rs 50 crore in the immediately preceding fiscal year. Besides any electronic payment modes you may already have, every applicable business needs to mandatorily also support:

  • Debit card powered by RuPay
  • Unified Payments Interface (UPI) (BHIM-UPI)
  • Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code)

UPI and RuPay are both properties of the National Payments Corporation of India (NPCI). Apart from promoting digital payments within the country, the government also aims to increase the adoption of state-sponsored payment infrastructure through the adoption of UPI and RuPay.

As mentioned earlier, UPI has seen immense rise in usage all through 2019. It contributed to 37.7% of all digital payments through 2019 on the Razorpay platform. While most of this contribution came from the B2C space, we believe that UPI has great usability in the B2B space as well.

How to accept B2B payments in UPI and RuPay

Coming back to the CBDT notification, with the 31st January deadline looming, the best way for businesses to fulfill the notification would be by integrating with a payment platform like Razorpay.

A payment gateway is a system that is designed to handle end-to-end payments. A payment gateway, when integrated with a business’s website or app, allows the business to accept domestic as well as international payments through all electronic modes. This includes netbanking, credit cards, debit cards and the notification’s requirements of UPI and RuPay. 

The best part about the Razorpay Payment Gateway is the ease of integration. With well-documented SDKs, RESTful APIs and support for popular plugins, getting onboard with Razorpay Payment Gateway will be a breeze to help your business meet the government’s deadline.

Features of Razorpay Payment Gateway:

  • Quick onboarding and integration
  • Developer-friendly APIs and plugins
  • PCI-DSS Level 1 security
  • Support for all payment modes 

The other options that your business can explore are Razorpay Payment Pages and Razorpay Payment Links. Payment Pages allows you to build a custom-branded page to showcase your brand, products and services, and accept payments on the go. 

Features of Razorpay Payment Pages:

  • No coding required
  • Go live in minutes
  • Meet your brand guidelines
  • Create a memorable URL

razorpay payment pages

With Payment Links, your business can send individual links to customers through email, SMS, chatbots and messengers. The recipient has to just click on the link to make the payment.

Features of Razorpay Payment Links:

  • Customise to your brand guidelines
  • No coding required
  • Automate through powerful APIs
  • Get started instantly 

razorpay payment links

Both Payment Pages and Payment Links support all payment modes, including the ones stipulated in the notification, that are supported by our Payment Gateway. If integrating with the Payment Gateway would be difficult before 31st January, then the best bet for your business would be to set up a Payment Page and fulfill the government’s ask in a matter of minutes. 

The CBDT notification under rule 119AA has come into force under the Income Tax Act from 1st January 2020. If your business exceeds the turnover of Rs 50 crore, you should get the facility to accept UPI and RuPay payments right away. Write to us at enterprise@razorpay.com to expedite the process through our banking partners.

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

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

Ready to Start Accepting Payments Online?


  • Quick Onboarding
  • Saved Card Database
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Data from this story was also published in The Times of India.

UPI Overhauls Cards as the Preferred Payment Mode at 45%

UPI

Surprising how UPI has grown so much to become the preferred payment mode in September. UPI, since its inception, has become quite the champion amongst payment modes. Anybody and everybody who accept payments, are now providing UPI as a default payment mode.

So, if you’re wondering what UPI has to offer in September, you’re in for a treat! Without further ado, let’s discuss UPI, the most preferred payment mode in India!

Before we get into the details, let’s bounce off of the different types of UPI payments and their significance. 

Although the use-cases for UPI payments are bountiful, we primarily use the payment mode for two kinds of payments.

  1. P2P (Person to Person) – UPI was initially a P2P payments enabler in 2017, meant for transactions between two people
  2. P2M (Person to Merchant) – After it took the payments space by a storm, it transitioned into a P2M mode, wherein people could make payments through UPI to merchants, both online and offline

Since Razorpay is a payments platform, it oversees P2M transactions from a multitude of businesses like BookMyShow, IRCTC, Zomato, to name a few. To better represent the efficacy of the transactions, we’re considering P2M transactions of UPI alone carried out on the Razorpay platform.

UPI vs other payment modes 

For the first time ever, UPI went past cards and other popular modes to become the most preferred payment mode in the month of September! 

UPI methodwise contribution preferred payment mode

We’ve been observing UPI transactions since 2017, and we always saw that cards (debit & credit) took the bigger chunk in the method-wise split, while UPI always stood right behind cards. But, the tables turned in September.

UPI contributed to about 45% of the total transactions we observed at Razorpay, while cards pitched in 42.56%, taking the second place.

You may think the difference is minuscule. But, with 350,000+ businesses on the platform, you can only imagine the number of transactions taking place every minute, every day. So, the 2% difference is a big deal. 

As much as people love swiping cards, the ease of simply not carrying cards anymore took precedence.

Netbanking summed up a total of 9.29% as wallets superseded bank transfers by 0.38%.

How UPI became the preferred payment mode

In our August month’s issue, we talked about UPI’s adoption skyrocketing. And, it’s no different this time either! 

The growth of UPI is always an interesting trend to stay updated with. We’ve seen the numbers vary across ranges and extremities. 

The payment mode is truly an innovation in fintech since it has been able to simplify payments like never before. And this very fact makes its elevation an exciting trend to observe. 

UPI transactions preferred payment mode

We looked at all UPI transactions from the month of April to September to analyze how much the payment mode has ascended. Keeping the month of April as the base value (calculated upon values of previous months), we can see that there has been sustained growth in the overall transactional value, as well as volume. 

Although May was an anomaly for various reasons, UPI managed to brush off the dust and swing right in from August, while discovering a new crest in September.

By 37.33%, UPI went through the roof in September, for the first time ever!

Next up, let’s take a look at how some of our favourite UPI apps did in September.

App-wise contribution

Since UPI was the biggest player in terms of payment mode, it’s only right we understand how much of a contribution each one of our popular UPI apps bore.

app wise contribution preferred payment mode

As always, the Google Pay drift continued as the app furnished a hefty 61.33% of the total UPI transactions there were carried out in September. PhonePe too, without changing its spot, followed Google Pay by handing out 24.2%.

Contributions of PayTM (5.94%) and BHIM (4.55%) saw a steady number, around the ballpark of the last few months. 

UPI apps of banks (constituting “others”) like Syndicate Pay, Kotak Mahindra, and more, along with Mobikwik, Airtel Payments Bank, Amazon Pay, accounted for a total of 2.45%.

Like UPI, UPI apps have also seen variations in growth. Some of the apps have seen a consistent rise, while others have fallen back. You can read all about it in our UPI Wars story.

Let’s see what tug-of-war went on in September. 

The evolution of UPI apps

app wise growth

We analyzed a high value and volume of UPI transactions to determine the growth of each UPI app, and the results were quite satisfying.

Google Pay, although the most used, adopted app, still saw a massive growth of 40.77%, while PayTM jumped up the ladder from August to 37.8%. And, PhonePe contended to claim its place at 34.01%.

While this war continued, BHIM silently made its way up by 31.17%.

Bank UPI apps like SBI (20.66%), HDFC (11.1%), and ICICI (10.38%) made the list by showing significant growth. Samsung Pay, ICICI Pockets, Mobikwik, WhatsApp Pay, Andhra Bank, and more (grouped as “others)”, also caught up by a total of 20.15%.

UPI transactions from across the country

Now that we’re fully aware of the growth of UPI and UPI apps, let’s dive into some geographical specifications to understand where these transactions came from.

preferred payment mode - upi transactions from across the country

As we’ve worked on the UPI series for a few months now, we had a few predictions about the states and cities’ contributions.

Karnataka, as always, was the #1 contributor of UPI payments in September, as 28.42% of the total UPI transactions were carried out in the state. While so, Maharashtra retained its place just after Karnataka at 14.51%.

Telangana and Andhra Pradesh collectively saw 10.48% of the total UPI transactions, and the NCR region contributed 8.77%.

Now, let’s jump into the contribution of cities

In our August month’s report, Bangalore gobbled up the first place, and the same went on in September as the city pitched in 39% of UPI transactions. 

Hyderabad also had a significant number of transactions (12.3%) just like Pune (9.4%). Mumbai made its name on the list for the first time at (7.1%) followed by Chennai at (6.1%).

Note: You may wonder how Karnataka’s contribution is 28.42% while Bangalore is 39%. The reason is, the state split is different from the city split. We consider the whole country to provide state-wise contribution, whereas we look into 15 cities and calculate their contribution.

While we’re on city-wise contribution, let’s get to the tier wise split.

Tier wise contribution

63.85% of UPI transactions were carried out in tier 1 cities, while tier 2 and 3 cities came through with 30.19% and 5.97% respectively.

Will UPI continue to be the preferred payment mode?

We’re as curious as you are! 

With UPI disrupting the payments space and climbing to the top as the most preferred payment mode, its impact is only getting bigger and bigger. 

It’s incredible to see newer innovations making their mark. This is proof that convenience always wins over most other parameters. 

Let’s explore more of Indian fintech next month, with another exciting UPI update. 

See you then!

(All findings are only based on transactions held on Razorpay platform in September 2019)

* * * * *

This story was first published in Inc42.

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How to Make Your Payouts More Efficient

Automated Payout

A payout is the transfer of funds from your business account to a contact’s fund account. You need to have sufficient balance in your business account to process a payout. The various methods available for a payout are IMPS, NEFT, RTGS and UPI

Are those payouts instantaneous?

Although IMPS and UPI payouts are near-instant, the other modes work only during banking hours. But we live in a world of ‘We want it now’, where sometimes the cooker explodes and everybody feels the heat. For instance, let’s say you had a significant business transaction to make, and you realise that the bank working hours are over. What do you do? Apart from the banking hours, there are other limitations like: 

  1. Limitation on bulk transfer (IMPS and UPI)
  2. Cooling period on adding beneficiaries 
  3. One cannot verify bank account before transferring 
  4. Complex infra systems 

There it goes, your ship is under attack. So what do you do?

RazorpayX

Whether you are making a one-off payment or processing a batch of hundred, move money seamlessly with RazorpayX, a platform to accelerate disruptors by making their financial operations intelligent, automated, and business-focused. Regardless of who you are, SME or enterprise, new age or incumbents.  For every payout, you need to specify the amount, the contact and the purpose of the payout. The payout amount and the payout charges are deducted from your business account balance every time a payout is made. These appear as a debit against the business account on the successful creation of a payout. In case a payout fails at any stage of its processing, a reversal is created, which results in a credit to your business account. Payout process

A diagrammatic overview of the payouts process in RazorpayX

By integrating with our flexible APIs and dashboard tools, customers can: 

  1. Accept and manage payouts via NEFT, RTGS, IMPS, UPI and more
  2. Upload contacts in bulk and share payouts in one go
  3. Track, automate and accelerate money movements for informed and impactful business decisions 

For example, Medlife, one of India’s fastest growing healthcare firm, wanted a solution to settle their million+ customers’ payouts from their closed wallets to bank accounts. RazorpayX helped Medlife offer a one-click payout to the customer’s bank account without requiring any human intervention. Results: 

  1. Instant payouts from customer wallets
  2. Increased flexibility on the usage of wallet
  3. A new stream of revenue via wallet linked loyalty offers

Secure, fast and cost-effective payouts are very critical to enhance customer experience, and one of the key element to increase business success.  So, what does efficiency mean for you? 

What are Automated Payouts and How Are They Helping SMEs?

“We regret the inconvenience. We are trying to clear the process from our end. You can expect the transactions to be cleared by tomorrow.”  “We haven’t received your invoice. Your cheque is in the post. The person who authorises your payment is not in the office today.“

If you are familiar with the above excuses, you should also know that they come with consequences. Unexpected delays in payments can hurt businesses that have little or no cash reserves or credit to rely on. Especially in a traditional small business, every individual wears many hats and deals with myriads of stakeholders. He or she strives to manage relationships while maintaining a high level of efficiency. And, it becomes very difficult if a business sticks to a manual process for paying vendors, customers, suppliers, etc. 

Here’s how the end-to-end payment process for most organizations (SMEs) looks

A user logs in to the respective banking platform and enters transaction details for every payment done. Now, to authenticate each transaction detail and ensure everything is in order, you require another hand to oversee the security process. Piece of cake, isn’t it? 

It’s all pink skies and blue unicorns when you are getting started–manually inputting and routing every single payment sounds feasible. But what will you do when the scale and the sheer volume of transactions grows? Automate your financial ecosystem.

How can SMEs benefit from automated payouts?

For example, a small scale business uses cheques as a form of payment. Here we go again, it’s paper! And the risks of cheques getting lost in the mail is equivalent to an extended waiting period known as “We’ll get back to you soon.” 

It isn’t always the form of payment, blame the process of tracking payments too. Companies can lose money and damage relationships with vendors by missing deadlines, or even issuing a refund to the wrong person. It’s tough to track them if you are on your own and rely on traditional payment systems. 

Traditional banking systems are often difficult to operate, due to clunky, outdated systems and technology. Most banks grapple with legacy infrastructure and are unable to deliver products and services with ease and agility.

Customers using banking solutions are often faced with a range of problems like:

  1. Lengthy approval processes
  2. Heavy UI, complicated user flows
  3. Outdated systems that are not integration-friendly
  4. Poor customer tech support for queries

An automated payout system can help you avoid late payments, issue instant refunds to your customers, and help pay your vendors. Most importantly, the CRM serves as an eagle eye (control and visibility) for your financial operations.

RazorpayX

For businesses small or large, new age or incumbents, we offer you RazorpayX–a platform to accelerate disruptors by making their financial operations intelligent, automated and business focussed. 

By integrating with our flexible APIs and dashboard tools, customers can

  1. Accept and manage payouts via NEFT, RTGS, IMPS, UPI and more
  2. Upload contacts in bulk and share payouts in one go
  3. Track and analyze money movements for informed and impactful business decisions

Traditional Business Banking Vs RazorpayX

                Traditional Business Banking                              RazorpayX
Countless hours of manual effortsBetter customer experience with instant payouts  
Glitchy software and complex infra systemsControl, track and analyze all types of money movements from a single dashboard
Complex and non-flexible money movement viewsManage and track money movements from vendors, customers, and more
No insights on payouts Off-the-shelf analysis of payouts made

Conclusion

Automation is the need of the hour for India’s large SME sector. With the right technology, business owners can focus more on customers, and let the technology take care of processes. It eliminates drudgery, avoids the troublesome situations. The result, efficiency becomes the epitome of your business. 

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