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

Razorpay UPI Report

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

One v/s the rest 

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

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

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

Let’s check it out!

Everybody wins

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

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

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

The banks are back for their bucks

Let’s talk about growth!

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

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

But the story doesn’t end here! 

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

That makes it a 53.76% growth for October alone! 

Haryana barges into the UPI club

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

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

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

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

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

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

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

Let’s talk about tier wise contribution…

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

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

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

The view is better at the top, but…

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

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

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

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

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)

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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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Bengaluru Records Highest UPI Transactions – 40% in August

upi transactions data august 2019

The secret sauce behind digitisation is the rapid adoption of technology that becomes a solution only after it solves a specific challenge. UPI has been hailed as the future of digital payments in India, a solution that’s adding newness, stirring an uprising of new world order in payments.

And, supporting this digital hullabaloo are the cities that never sleep.

UPI contribution across regions – The numbers will guide us home

Seems like Karnataka has been pushing the right buttons. 30.10% of India’s digital transaction makes the southern heart the numero-uno in UPI transactions. Namma Bengaluru lived up to its name and gobbled 40.06% of UPI transactions among the top 15 cities of India.

Maharashtra has seen a steady flow of 14.37% of UPI transactions, while Pune contributed 8.7% towards the growth. 

No rest for the growth rate in Andhra Pradesh, as the numbers pile up to a healthy 11.90%, which makes Hyderabad the second most-digitised city after Bengaluru. 

Here’s a Tier wise split infographic. 

There’s no stopping now. Yes, Tier 1 cities like Bengaluru, Hyderabad, Mumbai and Chennai are adding the necessary fire to the digital economy, which is responsible for 66.43% of UPI transactions in the country.  

However, Tier 2 and 3 cities have maintained the order with 27.87% and 5.70% of the digital home run. We also see Pune, Kolkata, Jaipur, Gurgaon and Noida joining the rush. 

UPI transaction In the last six months – Days of future past 

The rush is for real, and things are about to change. Enough said, let’s investigate the figures from March 2019 to August 2019. 

There’s been a dramatic turn of events in terms of growth, and authorised transactions for August, only shows how UPI could soon be a stepping stone of sustainable growth for an interoperable digital payments ecosystem. 

UPI trend In August – Like the Rock of Gibraltar

 

As consistency and chemistry go hand in hand, Google Pay, again, rakes in the highest moolah with 59.75% UPI transactions. Yes, sustaining an audience is hard, and someone knows how to raise the stakes. 

Whereas, facing the behemoth is PhonePe with an accelerating contribution of 24.91% of UPI transactions. As the numbers roll further, significant players like Paytm and BHIM muster 5.93% and 4.73% respectively. 

And, not to forget the banks. To name a few dominant players, ICICI, SBI, Axis and HDFC collectively contribute less than 2% of UPI transactions. 

UPI app wise growth – And justice for all  

Let’s talk about growth. 

The favourite of the masses, Google Pay has capped a 14.60% growth rate in August. This isn’t all, PhonePe is on the rims to call it even with a 12.93% advancement in this number tear-jerker. 

While Paytm has recovered and witnessed a 4.49% improvement in August. In terms of adoption, everyone tasted success except the NPCI powered BHIM app with a negative 0.49% drop compared to July. 

And, the tides have turned for the banks as HDFC ousts ICICI from the top spot with a 10 pointer. Whereas, SBI and Axis maintain the ground with 9.90% and 4.32% growth rate. 

Contribution across payment modes – Meanwhile, on the flipside 

It’s interesting to find that the contribution as well as the growth of the UPI players are on the same rate in August. We can debate all-day-long over plastic money and digital payments, but the preference of the customers do matter. 

Let’s see what the numbers say. 

  • As far as convenience is concerned, plastic money is still favoured amongst the masses, but it has seen a slight dip compared to 47.10% in July. With 44.10% usage rate, it remains undisputed
  • UPI is no more the new kid on the block. A 3% usage increase in August, which takes it to 40.78% – closer to the plastic czar
  • Netbanking saw a nominal dip from 12.66% in July and retained the third spot with an 11.37% share
  • Wallets, bank transfers, eMandate and EMI saw identical numbers like 1.73%, 1.24%, 0.73% and 0.04%

Average ticket value – At sixes and sevens

According to our insights, customers are clinging to old ways of making large value transaction. Because they are used to it, or they are concerned about the security in UPI transactions. 

Let’s face the stats. 

Key pointers:

  • The trust factor has increased in EMIs compared to any other payment option
  • Cardless EMI has marked a separate identity for itself, as people are enjoying the convenience of paying money with or without a debit/credit card
  • Whereas, the frontiers of their territories: bank transfers, netbanking, cards and eMandate keep a steady pace upwards
  • Still unpopular for large value transactions, UPI claims the last spot, which we believe will change shortly

Always forward. Always. 

For now, we can rejoice the ascension of the overall UPI transactions, improvement in ATV values and the increase in authorised transactions because the fable is fanciful and pleasing in itself. But It’ll be interesting to see what comes next. Whether or not UPI remains the de-facto mode of online payment, we will be back, only with the assurance of reality. 

The data presented here is based on transactions carried out on the Razorpay platform.

This story was first published in Inc42.

RBI Opens Up Recurring Payments on Cards – A Step Ahead for Digital Payments

All of us are well aware of the various initiatives that the Reserve Bank of India has been undertaking to make digital payments safe and secure. At various stages over the past few years, the RBI has announced measures to ensure that the Indian consumer doesn’t feel compromised at the time of transacting digitally and is able to make digital payments with ease. 

On Wednesday, RBI came out with a circular to propagate the use of cards in making recurring payments. The circular says that beginning September, consumers will be able to use their cards to make recurring payments to businesses through the process of e-mandate. The e-mandate and additional factor of authentication (AFA) will have to be done only once at the time of the first transaction. All transactions happening later on will be carried out automatically without the requirement of repeated AFA. 

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

At present, recurring payments can be made only using credit cards. The same could be done earlier through debit cards, but RBI had put a hold on that facility citing security issues and fraud cases. The fact that now debit cards and other prepaid instruments will come into the recurring payments ambit under stringent rules and regulations spells good news for the Indian consumption story. 

We believe that this move will enable consumers as well as merchants to greatly benefit by doing away with the hassle of authenticating payments time and again. The RBI circular also mentions that consumers will be given the facility set the recurring payment for a predefined fixed value or a variable value. To ensure that the cardholder is safe, he or she will also be able to specify a maximum value of the transaction as well.

Furthermore, to safeguard the interests of the consumers, RBI has said that they will receive a notification via SMS or email a day before the recurring transaction is to be carried out. This notification, which will carry details about the amount, date and reason for the transaction, will allow cardholders to take a call on cancelling the transaction, if they wish to do so. Of course, the cardholder can withdraw the e-mandate at any point as well. 

This facility will go a long way in further promoting digital transactions within the country. More so because consumers will not be levied any extra charges for setting up an e-mandate for recurring payments through their cards. 

For businesses in India, especially the ones where the average ticket size is lower but the transaction volume is higher, the ability of their customers to make recurring payments using cards will open up entirely new streams of user acquisition. Debit cards greatly outnumber credit cards in India today. Wallets are also used extensively. This means that a higher number of consumers will now potentially be able to make recurring payments. 

Players in the food-tech, insurance-tech, SaaS, fitness, cab aggregators, and bike rental services, etc are businesses that will benefit immediately once consumers are able to make recurring payments using debit cards. Providing a seamless payment option is only going to lead to lesser drop offs and higher profitability. 

We see this as the beginning of a shift towards one-click checkout. The average transaction times goes down for customers and the ability to retain users increases for businesses. On the whole, this is a significant step taken by the RBI on the back of what the industry has been asking for a long time. It will clear out safety concerns around recurring payments and enable more businesses to adopt the subscriptions model. 

This story was first published on Inc42.

A Closer Look into UPI Fraud and How it’s Done

Digital transactions are the need of the hour, and with the country rushing towards a cashless economy, it’s important to stay vigilant of all the loopholes in the system. 

UPI, being one of the foundation stones of the digital economy, needs to be airtight when it comes to security. With UPI transactions hitting an all-time high this year, it’s no surprise that UPI is one of the most preferred methods of payment in recent times. 

And why wouldn’t it be?

All you need is a 4-digit PIN to authorize your transaction and the deal is done in seconds. Of course, something so awesome definitely comes with its share of liabilities– and that’s what we’re going to see in this article. 

Amid a massive spike in online banking fraud, HDFC Bank issued a warning to all online banking users. According to the alert, fraudsters are stealing money from users’ bank accounts via UPI. Hackers access users’ mobile phones remotely through a device control app called AnyDesk.

So, how do we deal with UPI fraud? How do hackers take your information? What is the best way to keep yourself safe from so many seemingly intelligent tricksters online?

Let’s begin!

#1 Types of cyber frauds

Before you stay vigilant, you must first be aware of the types of fraudulent cyber activities out there. While there are one too many types of frauds, we’ll be discussing those pertaining to UPI scamming, in this article. Here goes:

  • Phishing

Fraudsters send bogus e-mails to access sensitive information of the potential victim. Once the victim keys in their details (password or PIN) into the fraudulent site, the information is immediately passed on to the hacker for misuse.

  • Malware

Malware is one of the most common forms of cyber fraud and can be mistakenly downloaded from a fake e-mail attachment or an unsecured website. Malware is designed to extract and copy data from the infected device.

  • Money Mule

Money Mule is a more elaborate fraud where once the victim’s data is obtained, fraud rings transfer money to an intermediary account to house the loot. This account acts as one of the money mules to park money collected from different victims.

  • SIM Cloning 

SIM cloning is a recent addition that has mushroomed after the OTP-mandatory rule by banks. If a fraudster clones your SIM, he can even change the UPI PIN. The fraudster gets hold of the victim’s bank account details and ID proof to reset the PIN. 

  • Vishing

Vishing is mostly scamsters posing as bank representatives, asking questions ‘on behalf of the bank’. These individuals weave a web of lies and enquire about the victim’s personal information to extract their PIN or password. 

#2 The Execution

It’s been observed that fraudsters follow a pattern whilst executing these elaborate plans. We’ve managed to weave a step-wise timeline of how these plans are generally executed. Take a look:

Step 1

Fraudsters usually call targets to get their attention, as opposed to texting. They commonly disguise themselves as a bank representative, calling for a seemingly harmless issue.

Step 2

To make the call sound legit, they proceed to ask verification questions like your date of birth, name or mobile number.

Step 3

There is always a problem. Hackers usually use technical difficulties in the app or website to get to talk to the victim. They usually weave a false story that the victim may have to forfeit their personal information to resolve the issue.

Step 4

Once the fraudster has convinced the victim, they proceed to ask the latter to download an application on their phone. Some of the apps are AnyDesk and ScreenShare, which are available on the Google Play Store.

Step 5

While downloading AnyDesk or any similar application, it asks for the user’s privacy permission, like any regular app. But don’t be fooled, these apps can access everything on your phone.

Step 6

The fraudster will then ask the victim for a 9-digit OTP, which is generated on their phone. As soon as the victim reveals the code, the hacker will also ask to grant permission from the phone.

Step 7

When the app acquires all permissions required, the caller starts to take full control of the victim’s phone without their knowledge. After getting full access to your phone, a hacker steals passwords and begins transacting with the victim’s UPI account.

We identified other approaches, too. Fraudsters send an SMS and ask the victim to forward it on another number that they provide. After the message is successfully sent, it permits the fraudster to link the victim’s mobile number or account through UPI to their mobile. 

Fraudsters also send a ‘collect request‘ or a refund request to your Virtual Payment Address (for ex: name@bankname) on apps like Google Pay, PhonePe, etc. 

Most users authorize these requests without paying attention, and this can lead to any amount of money being collected from their account.

#3 Staying Vigilant: A Guide

Scamsters aren’t inevitable; they can, of course, be avoided by taking some essential precautions. These aren’t just to keep you away from fraud; these are also fundamental things to keep in mind to keep all your information safe in the era of the Internet.

  • Beware of engaging with fraudsters

As vague as it sounds, the best way to protect yourself from fraudsters is to stay away from engaging with them. Your bank will never call to discuss your sensitive information; if you receive any call asking you to do the same, that’s a red flag right there.

You can check for the authenticity of unknown numbers with apps like Truecaller, which has a global database of numbers flagged by users.

  • Take extra precaution while requesting/accepting requests

Fraudsters take advantage of the “request money” feature on apps like Google Pay, PhonePe, BHIM, etc.  Imposters express interest in buying a product advertised on various online platforms and engage with the seller on a phone call.

They make the seller of the product to transfer the money using UPI apps’ ‘request money’ option. A small careless click can sometimes cost you thousands. Remember, receiving money requires no PIN.

  • Pay attention to SPAM warnings on your UPI app

UPI apps like Google Pay and PhonePe generally gives users a spam warning if they’re receiving a request from an unknown account. Do keep an eye out for such statements, and if you do spot any such suspicious accounts, make sure to report as spam!

  • Be wary of malicious apps

Frauds have also been found using fake mobile apps to cheat people. They create an app that is similar to the original bank app and submit it on the Google Play Store.

When a customer accidentally downloads and installs the fake app on his/her mobile phone and gives necessary permissions, then the app starts sending out sensitive data to enable fraudsters to withdraw money from the victim’s account.

Several fake apps like Modi Bhim, Bhim Modi App, BHIM Payment-UPI Guide, BHIM Banking Guide, Modi ka Bhim, etc. have been reported to have stolen personal data of customers in the name of providing some valuable banking service.

  • Follow security practices

Make sure that you don’t reveal your PIN to strangers under any circumstances. Also, make sure to protect your UPI apps with biometric recognition software. This way, hackers cannot misuse your account. It’s also recommended that you install anti-virus software to keep an eye out for other malicious software. 

  • Never open e-mails without checking their authenticity

E-mails are one of the easiest ways to trick a user into downloading Malware and subsequently obtaining their information. Make sure to always scan your e-mails for viruses/Malware.

  • Keep a check, every once in a while

Once in a few months, sift through your account activity to check for any suspicious behaviour on your account. We often forget to keep track and may miss a few red flags along the way. It’s always best to do a thorough check once in a few months. If you notice any unusual pattern, make sure to alert the bank right away.

  • Avoid using open Wi-Fi

Using an open Wi-Fi is never a good idea as it may give the hacker a good chance to access everything that’s on your device. Instead, always check if the Wi-Fi is trustworthy before connecting to it.

  • Keep track of all your bank messages

Take a closer look when you receive messages from your bank. Know the difference between a password, PIN and an OTP and carefully examine the message for inconsistencies to stay safe. Keep track of all your bank messages to make sure you’re aware of all the transactions to and from your account.

While no application is entirely fool-proof, the only way to stay safe is to be wary of fraudsters who can go to any level to fool you. In any case, make sure to contact your bank if you think something’s not right. 

We’ll see you next time with more useful tips on keeping your money safe!  

Also read: IPL & World Cup Contribute to 15% of Digital Payments

7 Reasons Why Razorpay is Right for You

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

The most crucial quality of a payments solution is the ability to scale itself to meet your growing demands. At Razorpay, we are devoted to making sure you have the best payments infrastructure in place.

[ Suggested read: How We Evolved into India’s First Converged Payments Solution ]

Read on to see if you identify with these objectives.

#1 You want to easily add payments to your website or app, with a seamless checkout experience

Razorpay’s Payment Gateway is a system designed to handle end-to-end payments.

Have we told you how easy it is to integrate our Payment Gateway? You can go live in minutes, especially because our Payment Gateway is built for developers. The APIs, plugins, and libraries are very dev-friendly.

Razorpay’s Payment Gateway supports the most extensive set of payment modes. From domestic and international credit/debit cards to UPI and mobile wallets, we’ve got you covered. 

#2 You need a wide range of payment solutions and services to support your versatile business

How would you reduce periodic collection cost, increase monthly recurring revenue, reduce churn, and offer better user experience to your customers, all at the same time?

With a subscriptions model, of course! 

Offer your customers plans with automated recurring transactions on many payment modes.

With Razorpay’s Subscriptions, you can onboard subscribers from all around the world! Subscriptions also supports multiple billing models. Which means –

  1. You can automate your fixed price recurring charges to your customer around a fixed schedule 
  2. You have the flexibility to charge your customer based on number of users or quantity per billing cycle 
  3. You can charge your customer only for what they consume in a billing cycle

Let’s say you’re dealing with a one-off use case where you wish to accept payments from your customers. Could be something like a workshop or even raising funds for charity. Would you build a whole new eco-system for this?

Nope!

Create a Razorpay Payment Link or a Payment Page and share with your customers via email, text message, or social media, without creating a separate integration!

With either one of Razorpay’s products, you get to accept payments from 100 currencies from all over the world!

#3 You want to target your efforts towards specific areas of your business based on data and insights

Decision making is a crucial aspect of any business. And, data plays a huge role in this process since it enables you to form business contingency, as you can predict future trends and optimize your current efforts.

Razorpay’s dashboard is the most comprehensive, data-driven, and an analytical dashboard that serves your purpose. 

The dashboard helps you evaluate real-time data and draw insights from the extensive reports, so you make better and informed business decisions.

#4 You want to manage and track money movements to vendors, customers, employees, and more

We understand traditional payments and disbursals can be a pain. With traditional banking, you end up spending many hours of manual labor every month because of multiple buggy software and complex infra systems. 

Money movement views can also be super tricky because of complexity. Oh, and let’s not forget that you’ll receive no insight on payouts to make impactful business decisions.  

Not anymore.

With RazorpayX, you get to simplify, accelerate, and supercharge every aspect of your financial operations! From accepting payments and managing cash flow to reconciling transactions and flexible payouts.

You end up saving 10x time because of instant payouts with reduced manual effort, also providing a superior customer experience.

RazorpayX provides you with a unified platform that helps you make, control, track, and analyze all forms of money movement from its powerful dashboard.

You can also manage and track money movement to vendors, customers, employees, etc. through the in-depth Financial CRM.

The result, you ask?

You make informed, impactful business decisions with off-the-shelf analysis on payouts mode!

Say bye bye to traditional banking with RazorpayX!

#5 You leave no stone unturned when it comes to providing your customers with the best support there is

As your business grows to see new heights, you are definitely in need of highly responsive customer service. What good is a product if the customer support is slouchy?

Your customers’ problems are our problems.

With Razorpay’s remarkable Customer Support, you don’t have to worry about clarifying any payments related setbacks to your customers. We’ll solve all problems for you, and in turn, help you serve your customers better.

Your customers spend less time on hold and have their problems solved at lightning speed.  

Our Customer Support offers live support for you and your customers. And, by that, we mean real people and not bots. 

#6 You want to open up new revenue streams by expanding your business on a global scale

With Razorpay’s International Payments, you get to open an entirely new channel of acquisition and grow your business to a whole new level! 

We understand payments more than anyone, and it only makes sense that we support you when you take your business to the world. 

Give your business state-of-the-art payments infrastructure with Razorpay’s International Payments. 

With over 100 currencies supported on the platform, experience seamless payments from any part of the world with real-time currency conversion!

You can integrate the Payment Gateway in minutes or give your international customers, subscription plans with automated recurring transactions.

You can share payment links via text messages, email, and more or create custom-branded Payment Pages to accept international payments online.

You can also send your global customers invoices that are GST complaint, with item-level details and accept payments through the many many payment modes we support!

#7 You want highly reliable fraud prevention and security

We understand that most people have different security concerns while making online transactions. It’s hard-earned money, after all. With so many people making purchases online, there is a growing need to make sure that all the information they enter is safeguarded.

And, we are highly motivated to provide robust security, so this sensitive info doesn’t fall into the wrong hands. This is where Payments Compliance comes to the picture. 

Created, mandated and registered by the branded cards and Payment Card Industry Security Standards Council (PCI SSC), the Payment Card Industry Data Security Standard (PCI DSS) is the set of rules that makes sure that every transaction is safe and no data is lost.

All of Razorpay’s products are secured by an industry-standard 100% PCI DSS compliant and certified solution.

So, did you nod your way through thinking “yes, I need that!”? Then, get started with Razorpay now!

Introducing the Era of Instant Refunds

instant refunds razorpay

With the advent of fintech advances in the 21st century, where a payment is completed within a blink of an eye, it’s an enigma that a refund is processed at 20th century speed. 

Messages like above, ranging from a cancelled food delivery order to a cancelled flight booking, lead to a nightmarish last-leg product experience for the user. This long cycle of processing refunds is a significant problem with every popular payment mechanism in the payments industry. 

In the last five years, as one of the fastest-growing payment gateways in India, Razorpay has seen a subtle change in the dynamics of the payments ecosystem. A young India has emerged, where the consumers are obsessed with one-click payment on merchant checkouts and prefer non-OTP based payment methods like UPI for completing a payment.

This indicates the apparent restlessness of the new Indian consumer.

In this era, asking people to wait for a week for an amount processed in 5 seconds is not just unfair but a poignant question on the technological advancements being made in the fintech ecosystem.

From 7200 minutes to 2 minutes

Instant Refunds – Razorpay’s Instant Refunds tackles this lengthy and opaque life-cycle of refund. By using this feature as a merchant, you can now do away with sending the aforementioned messages and be assured that the refunds shall hit the end-customer’s account within 2 minutes of the initiation. 

Here’s what a typical customer scenario for an online business looks like:

A frantic and irritable customer calls up the customer support demanding refund of the INR 14,000/- flight he just booked with wrong user details. Even though the booking was refundable, the long time mentioned in the SMS for the amount to reflect back in his account is driving him crazy.

The Merchant is practically clueless and completely relies on the payment gateway’s promise of the refund timeline. The payment gateway, in turn, relies on the promises made by the entities across the payment layer which is responsible for parking the amount in the customer’s account.

This chain of promises is the biggest barrier that Razorpay overcomes with Instant Refunds. 

Razorpay’s Instant Refunds feature not only ensures that the refund is processed at a 3600x faster pace than the normal expected time, but also gives the last-leg visibility to the businesses on the processing outcome of the refund. 

Currently, Instant Refunds supports several major credit card providers, UPI and net banking.

Credit cards:

  • ICICI Bank
  • HDFC Bank
  • Axis Bank
  • Standard Chartered Bank
  • Kotak Bank
  • Citi Bank Retail
  • HSBC
  • and more

UPI:

  • All major PSPs

Netbanking:

  • Bank of Baroda
  • Canara Bank
  • IndusInd Bank
  • Central Bank of India
  • and more

Click here for the entire list banks and PSPs supported for different payment methods.

The 99.9% problem

With Instant Refunds, Razorpay tries to deliver the refund in the fastest possible time-frame to the end customers. However, with any complex technical process like a payment or fund transfer, there are small chances of failures.

In these cases, Razorpay takes the complete onus of pushing the refunds successfully at whichever speed possible. In these rare cases, the merchant can be assured that the amount will eventually reach back to the end-consumer in due time communicated by Razorpay.

This will be done as a response in the Razorpay’s Refund Status API, which empowers the merchant to perform real-time tracking of the refund process speed and refund status.

Razorpay levies a small fee for processing Instant Refunds, which is deducted from your Razorpay Balance while processing the refund. This fee is charged because Razorpay has to bear the subsequent cost of processing the fund transfer to the customer’s account for the refund.

This deduction takes place only if you decide to process the refund instantly. In case, Instant Refunds is not successful, and the refund takes 5-7 working days, the levied fee is reversed back to your balance.

The experience economy

Instant Refunds aims to curb several key problems that you end up facing as a business. It lays the foundation for a 7-star consumer experience for a customer completing a transaction with you. To sum up, Instant Refunds helps in:

  1. Increasing Customer Retention: A customer is more likely transact with you if you return his money back as soon as possible
  2. Improving Reliability and Trust: More trust between you and your customer as you righteously and timely move the money back to the customer’s account
  3. More control and visibility on the refund lifecycle: No more back and forth on hundreds of customer support conversations that trouble your operations team

We are currently rolling out this feature for 6 major credit card providers and UPI. In the next phase, we will be adding support for all of the aforementioned credit cards and debit cards.

Want in early on this feature? Leave us a query here and our team will get back to you shortly. Not a Razorpay Customer? Sign up today for the ultimate payments experience!

Also read: Why Online Payments Fail

UPI Made a Solid Comeback This June

UPI made a solid comeback this June

We’re back with yet another UPI story! And, we spent some extra time and effort into understanding how India transacted in the month of June. This story is particularly exciting for us to tell because we made some keen observations since there was a dip in the UPI transactions in the month of May.

By now, UPI needs absolutely no introduction. We’ve all used UPI in some shape or form to make a digital transaction. We’re all familiar with Google Pay, PhonePe, and other UPI apps, and we love to use these apps to make payments these days. It’s only fair to observe how India transacts digitally since UPI created a finch revolution in India.

UPI (Unified Payments Interface) being an instant, real-time payments system has pretty much become one of the most preferred payment modes today. Why? Only because of its mobile-first design and approach. Things have gotten so much easier since the dawn of UPI, as far as payments are concerned.

Last month, we talked about UPI transactions falling by 6% in May, at the industry level. And we were as surprised as the next person was. But, considering the pattern that was observed for the last six months, we knew the dip was going to be temporary. Or so, we predicted.  

Types of UPI transactions

To understand the trends, let’s talk more about the types of UPI transactions.

  1. P2P UPI transaction (Person to Person) – transaction made between two people 
  2. P2M UPI transaction (Person to Merchant) – transaction made between a person and a merchant

We considered P2M transactions alone because they better reflect the growth of UPI. This is because P2M transactions aren’t carried out solely for the sake of rewards and incentives. Razorpay, being a payments company, observed UPI based P2M transactions from big names like Ibibo Group, IRCTC, Swiggy, BookMyShow, and many, many more. 

We were able to draw some cardinal patterns and observations based on the huge volumes of transactions that took place via the Razorpay platform. 

So, what happened in June? Let’s find out!

Since January 2019, we’ve seen a consistent rise in the transactional value as well as the volume of UPI, no doubt. Like we mentioned earlier, we did observe a dip in the month of May, which we predicted would be temporary. And we were right!

UPI contribution in the last 6 months

On the Razorpay platform, we noticed UPI transactions having taken a dip by 13% in May, came back to take its place in June. For a moment, let’s completely disregard the plunge in May. In that case, doesn’t the June UPI trend put UPI transactions back on the scale? Definitely! 

In that case, May’s UPI trend is a deviation from the pattern. Many factors at the topmost level contributed to this devotion. But now, it looks like UPI is back to settle scores and make up for the lost time.

App wise UPI trend in the month of June – Stating the obvious 

Ever since UPI gained popularity, many apps hit the market to facilitate UPI and provide UPI as a service. We all know these apps; we’re all fond of these apps. 

UPI apps have made digital transactions like a walk in the park. All you have to do is pick up your phone, enter the payee’s number/ID or scan the QR code. And you’re good to go! 

So, let’s take a look at some numbers and understand how much of a contribution each of these UPI apps have made.

Contribution of each UPI app

We went through high volumes of UPI transactions to identify which app contributed the most.

Of course, 58% of total UPI transactions were made via Google Pay, giving the app its rightful place at the top. Remind you; the app has also been consistently on the top of its game for quite some time now. It wouldn’t be wrong to say that it’s not wavering from its place any time soon!

PhonePe contributed a total of 25% of UPI transactions, keeping its second place, the same as the month of May. Paytm went up a spot as about 8% of UPI transactions were made via the app, pushing BHIM to the 4th place as it came through with about 6%.

Our honorary mentions are the bank UPI apps.

ICICI UPI app at 1.22% and SBI, Axis, and HDFC UPI apps maintained the same order as the May month, at 0.29%, 0.17%, 0.07% respectively.

Let’s check back next month to see if this changes!


UPI app wise growth

While we’re talking about UPI’s growth, let’s also look into how much UPI apps have grown.

UPI transactions app wise growth

Taking into consideration the volume of UPI transactions as well as frequency and adoption from the month of May, many UPI apps gained momentum as they bounced back from May’s one-off downward trend.

Google Pay saw marginal growth in May, whereas it grew by 10.5% in June. You may wonder, 10.5% is not really a significant number. But it is. Google Pay is the most used and highly preferred UPI app over any other app. Which means, its adoption rates are already up there. So, if the app grows by 10%, it’s still a big deal.

From no growth or rather negative growth, Paytm grew by a whopping 60% in June, while PhonePe grew by 21%

Amongst the bank UPI apps, Axis UPI app took a blow as it fell by 11%, whereas SBI, ICICI, and HDFC saw a rise by 18.6%, 5.8%, and 5% respectively.

Let’s also remember that the 6% plunge of UPI in May took a toll on the growth of UPI apps, and not the UPI apps itself. Of course, preferences of consumers change from time to time, but since UPI came back to form in June, its growth reflected in the UPI apps as well.

UPI contributions across regions

India loves UPI, and we’ve all established that. But what parts of India transact using UPI the most? We did some digging on the Razorpay platform and here’s what we found out.

  • Karnataka contributed 26.49% of the total UPI transactions, the highest throughout the country, out of which 35.62% were made from Bangalore
  • 14.91% of UPI transactions were carried out in Maharashtra, amongst which Pune contributed 9.9%
  • Telangana took the third place as 11.58% of UPI transactions came from the state, while Hyderabad contributed 13.3% of the total

Let’s take a look at the tier wise split.

UPI tier wise split

The graph represents that most UPI transactions were carried out in tier 1 cities. Bangalore, as mentioned earlier, contributed the most amongst tier 1 cities by 35.62% while 13.3% of UPI transactions were made from Hyderabad, placing the city in the second place.

Chennai chipped in 7.31% and Pune, being a tier 2 city, contributed 9.92%.

Contributions across payment modes in June

Now that we’ve got UPI transactions covered, let’s talk about various other payment modes. 

We took a look at some numbers and drew insights from them as we compared one payment mode to the other. Let’s dive in.

UPI method wise contribution

Key impressions

  • Same as May, Indian consumers mostly preferred card transactions. 47.32% of the total digital transactions came from debit and credit cards, taking the first spot in maximum transactions made across the country
  • UPI transactions went up from 31.48% in May to 35.76% in June, giving its spot in the line immediately after card transactions
  • Netbanking saw a slight growth of 5% from May, at 13.64% in June
  • Bank transfer also saw a slight growth of 2.7% in the month of June, as 1.66% of the total digital transactions were made via the payment mode
  • Wallets, e-mandate, and EMI grew from 0.82%, 0.4%, and 0.03% to 1.03%, 0.51%, and 0.08%


Average Ticket Value (ATV): UPI is still hanging in there

Like we discussed in the last couple of months, Indian consumers are somehow shying away from making large value UPI transactions. This was an inference we made after observing repetitive patterns, and the inference didn’t fail us for June’s ATV as well.

The numbers from contributions across payment modes helped derive these insights concerning the Average Ticket Value (ATV) of each one of the payment modes. Let’s take a look.

  • EMI took the most substantial share as it turned out to be the most preferred mode of payments for large value transactions for the majority of Indian consumers
  • Cardless EMI followed its close cousin, being the second pick of most consumers, same as the last couple of months
  • Netbanking, bank transfers, and card transactions remained to be crowd favourites, right after EMI and cardless EMI
  • UPI and wallets took the least priority as consumers chose to make small value transactions with the payment modes

The long and short

UPI has proven itself in the Indian fintech landscape. It’s been reaching significant milestones day in, day out, and it excites us every month to provide updates about its growth. 

We can’t wait to see what’s next with UPI in the upcoming months and what an impact it can still make as far as digital payments are concerned.

Let’s explore more of Indian fintech next month! See you all then!