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?


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


  • All major PSPs


  • 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!


What is a Payment Gateway and How Does It Work

what is a payment gateway and how does it work

Online payments have become a part of our daily lives in no time. We’re transacting online not only through debit or credit cards but through numerous other modes like UPI, netbanking and wallets as well.

Paying online is a fundamental feature that every e-commerce platform in the world offers. And they can provide this facility by integrating with a payment gateway.

Online payments are swift and convenient. They allow you to buy products and services from all over the world. If you are a seller, you can sell to anyone in the world with a decent internet connection. Your customer doesn’t even need to have a computer; a smartphone is enough.

But what exactly is a payment gateway? Is it safe to transact through a payment gateway? Does it make sense for your business to have a payment gateway integration? Let’s find out.

What is a payment gateway

An online payment gateway (PG) is a tunnel that connects your bank account to the platform where you need to transfer your money. A PG is a software that authorises you to conduct an online transaction through different payment modes like net banking, credit card, debit card, UPI or the many online wallets that are available these days.

A PG plays the role of a third party that securely transfers your money from the bank account to the merchant’s payment portal.

To explain this in simpler terms, at the time of buying a book from a popular digital platform like Flipkart, when you make the payment for the book, a payment gateway helps you in the process by transferring your money to Flipkart.

How a payment gateway works

A payment gateway focuses on securing the sensitive information given by the user throughout the process. It ensures security by encrypting data like card and bank details that have been provided by the user.

The following are the basic steps showing how a typical payment gateway works.

Step 1: A customer places his or her order and then presses the Submit or Checkout button, or its equivalent button, on the website

Step 2: Once this happens, the website or the e-commerce platform takes the customer to a payment gateway where he or she enters all the relevant information about the bank or the card they are using to pay. The PG then takes the user directly to the page of the issuing bank or a 3D secure page, asking for the transaction to be authorised.

Step 3: Once the payment gateway gets the approval for the transaction, the bank then checks whether the customer has sufficient balance in the account to make this transaction a success or not

Step 4: The payment gateway sends a message to the merchant accordingly. If the reply from the bank is a “No’”, then the merchant subsequently sends an error message to the customer, telling them about the issue with the card or the bank account. If the response is a “Yes” from the bank portal, then the merchant seeks the transaction from the bank

Step 5: The bank settles the money with the payment gateway, which in turn settles the money with the merchant

Once this process is completed, the customer gets a confirmation message of the order being placed.

As mentioned earlier, the transaction of money involves sensitive information about a person’s bank and card details that are entirely personal to him or her. Therefore, it is imperative to make sure that this information stays safe.

How a payment gateway keeps information secure

A payment gateway ensures the security of the information you put in. Here is a list of things that a PG does to keep your data safe:

  • First things first, the entire transaction is carried out through an HTTPS web address. This is different from the HTTP as the S in the HTTPS stands for Secure. The transaction takes place through this same tunnel
  • As a result of the hash function, the system often uses a signed request from the merchant to validate the request of the transaction. This signed request is a secret word, which only the merchant and the payment gateway know
  • To secure the payment page result of the process, the IP of the requesting server is verified to detect any malicious activity
  • Virtual Payer Authentication (VPA) is something that the acquirers, issuers and the payment gateways are backing to secure the process even more. VPA, implemented under the 3-D secure protocol, adds an additional layer of security and helps the online buyers and sellers to authenticate each other easily

Benefits of using a payment gateway

Using a payment gateway is not just for transferring money, but it has other benefits as well. A PG can allow a merchant to give the user get a better experience.

  • PCI-DSS Wallet – The PCI-DSS compliance makes it secure enough to allow the user to store their personal data in the portal or gateway for recurring payments. For example, if you are a frequent customer on Swiggy, then you can save your bank or card details on their site or app, and the gateway will keep it secure from any cybersecurity threat
  • White-Label Wallet – Some payment gateways allow you to make digital transactions through mobile wallet apps. This is the current trend, as it enables the user to make all his transactions by just sitting at one place. You can bring in your money from the account balance to the mobile wallet app and then further use it to make payments on other apps or websites
  • Fraud Screening Tools – Many payment gateways provide you with fraud screening tools to reduce the risk of losing information. These tools include the Card Code Value (CCV), Card Verification Value (CVV) or even the Address Verification Service (AVS). These tools ensure that there is no fraudulent transaction

A payment gateway focuses on creating a secure pathway between a customer and the merchant to facilitate payments securely. It involves the authentication of both parties from the banks involved.

The most significant advantage of a payment gateway is the fact that it allows millions of users to use it at the same time, making it possible for you to purchase or sell goods and services whenever you want.

TL:DR? Check out the video below.

Ready to Start Accepting Payments Online?

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

UPI Transactions Fell by 6% in May, However…

Surprising, isn’t it? Only last month, we were talking about the unbelievable growth and adoption of UPI throughout the country.

And, recently NPCI data revealed a 6% dip in UPI transactions at the industry level.

It may be so, but as we spent some time looking into the numbers, we also understood that it may be a one-off situation. Read on.

We all use UPI for pretty much everything. From buying groceries to paying rent, from paying for cab rides to enjoying some hot coffee at a local coffee stall. UPI has definitely changed the way India pays today. And, the numbers have always left us awestruck. The country did see a remarkable digital transformation as far as payments are concerned, and the transformation is still processing, reaching new heights.

Over the last two years, UPI has evolved itself into a preferred merchant first payment (P2M) platform, from being just a P2P payment mode in 2017.

We use UPI for two kinds of transactions – P2P (Person to Person) and P2M (Person to Merchant). Although P2P transactions are higher in volume (because of the fact that UPI apps incentivised referrals through cashback and discounts), let’s consider P2M transactions. The latter reflects an unbiased picture of UPI growth as P2M transactions go beyond scratch cards, incentives and rewards.

Being a payments platform, we observe UPI based P2M transactions from over 200,000 businesses such as Airtel, BookMyShow, IRCTC, Zomato, and more. Basis huge volumes of transactions, it allows us to observe patterns and derive new insights.

So, here are some pivotal observations we made in the month of May, on Razorpay’s platform.

UPI transactions in the last five months

We compared UPI transactions from January 2019 to May 2019.

The transactional volume and value saw a consistent rise till April as the numbers kept increasing in a gradual manner, as predicted.

But, when we looked at May, the pattern broke. The rise was not gradual anymore because the month saw a dip by 13% for the first time since the advent of UPI. It may seem astonishing to think of it initially, but it does make sense to some extent.

We put our thinking caps on and inferred the skyrocketing numbers in April don’t really negate the fact that UPI has been seeing new heights. The comparison between March and May supports that UPI has been flourishing.

UPI trend in the month of May – No prizes for guessing!

There are one too many apps in the market that provide UPI service. We analysed the transactions that took place on Razorpay via each one of these apps to see which app was the cherry on the cake.

No surprises here. You must already know by now.

Google Pay stood tall as it was the only UPI app that was used predominantly by consumers, over every other app!

We saw a smashing 60% of UPI transactions were carried out through Google Pay. This has also hit an all-time high in May! April saw 51% of UPI transactions while March, February, and January observed 57%, 53%, and 53% respectively.

The second highest number of UPI transactions came through PhonePe at 23% (down from 28% in April), while BHIM contributed close to 7% (down from 9% in April) of the total UPI transactions in May, taking the third place!

ICICI UPI app was mostly used compared to the other bank based UPI apps, at 1.32%, while others were used even less frequently.

While we’re still talking about UPI trends, let’s also take a look at the app-wise growth.

In terms of adoption and usage, Google Pay, the preferred UPI app witnessed a small growth of 0.64% in terms of adoption and usage. This may seem insignificant but isn’t so, since the greater number of the population prefers Google Pay over the others.

BHIM took a massive blow as it fell by 37%, being the highest plunge downwards in the month of May. PhonePe took a hit by 27% as WhatsApp saw itself climbing up the ladder to see the summit at 7%.

Why, you ask?

Google Pay is rapidly growing mainly because of its higher success rates (65%) compared to the other UPI apps.

Now, Let’s look into the overall digital transactions that happened in the month of May, on the Razorpay payments platform.

Contribution from different payment modes

More numbers, more insights. Let’s jump in, shall we?

We’re not talking about UPI alone anymore, but other payment modes as well. We spent some time analysing transactions across modes to compare and contrast one another. Here’s what we found out.

Key takeaways

  • Card transactions took the first slot by contributing 52% of the total number of transactions on Razorpay’s platform, but still went down by 4.5% from April
  • Close to 32% of transactions were made through UPI, which also saw a fall of 13% from April
  • Netbanking saw a growth of 8%, as 13% of the total transactions were made through the payment mode
  • Bank transfers grew by 95%, contributing 1.66% in May, from 0.81% in April
  • Wallets, e-mandate, EMI, and cardless EMI experienced growth by 15%, 6%, 22% and 12% respectively, from April.

Average Ticket Value (ATV) – consumers still shy away from making large value transactions via UPI

Based on the overall transactions we just discussed, we were able to draw out specific data points concerning the Average Ticket Value of each payment mode that are worth mentioning.

  • EMI held the largest ATV, same as April. Consumers preferred EMI over many other payment modes to make big purchases
  • Cardless EMI was the second favourite of most consumers as it contributed to the 2nd highest ATV, again, same as April
  • Most consumers stuck with the conventional payment modes like EMI, netbanking, and bank transfers to make transactions of higher value
  • UPI took the bottom priority for larger faced transactions, but saw a growth in the ATV from 563 in April to 694 this May

Baby steps.

Last time, in our April’s report, we observed a greater number of UPI transactions. But the ATV was a small number since consumers chose other payment modes over UPI for larger transactions. But this time, in the month of May, we observed a larger ATV and fewer UPI transactions from April. Surprised? Don’t be.

EMI and cardless EMI have somewhat become the go-to means of payments for a lot of consumers. This also affects the ATV of UPI. And since the number of UPI transactions reduced, the ATV increased.

State-wise contribution of UPI transactions

Most of the UPI transactions made by the country came from Karnataka, at 27%, out of which Bangalore contributed close to 37%.

Maharashtra took the second place as it contributed about 15%, out of which, 10% came from Pune.

While we’re talking about cities and UPI transactions, here’s a tier-wise split of UPI transactions in May.

The chart clearly depicts the fact that most UPI transactions were made in Tier 1 cities. We spoke about Bangalore’s contribution already (37%). Hyderabad is the next mention after Bangalore, as 12.8% of all UPI transactions came from the city. Chennai contributed 7.66% while Mumbai, 7.45%.

10.35% UPI transactions were made in Pune, while Jaipur and Ahmedabad contributed 3.79% and 3.56% respectively.

The evolution of UPI

In our April’s report, we talked about UPI growing by 20x in a year. That’s quite huge – mainly because UPI changed the landscape of payments in the country.

Although WhatsApp did not come up as much as we thought it would, we’re sure it’ll see a surge in adoption in the upcoming months. Mobile payments will see a significant growth by 2020, by volume.

End of the road

Although May does take a bit of a backseat, it doesn’t necessarily mean that the downward trend will continue in the upcoming months. There’s only one way to find out!

We can’t wait to explore more of Indian fintech with you!

Until next month.


This story was first published on Inc42.

Accepting International Payments Gets Easier with Razorpay

Global aspiration for Indian businesses used to be reserved for large enterprises. Between 2000 and 2010, the businesses that grew a reputation of expanding beyond the Indian borders were likely owned by industrial giants such as Reliance Industries, Tata Group or software powerhouses like Wipro and Infosys. Building this reputation either required an endless war chest, or a discipline to pull out all the stops, and sometimes both.

But now, a decade later, a number of Indian companies are heading for international shores. While expanding into international markets comes with its own hurdles, it also helps drive more revenue and creates a competitive edge that can become a key differentiator in the market. In some cases, it is possible without additional investment.

Thanks to newer payments innovations it is easy to expand to new markets quickly. Customers are more likely to buy from your site repeatedly when you allow them to pay in their local currencies. In order to generate more revenue internationally, it’s crucial to partner with a Payment Service Provider that can extend proper multi-currency support.

What is multi-currency support?

Multi-currency support means that your customers can pay for your product or service using their local currency. Typically, buyers in most countries are forced to make purchases from Indian businesses in INR during international transactions, which can make the whole experience feel forced and reduce the buyer’s trust in the transaction and seller. This can also lead to abandoned carts and lost sales.

Listing prices in the local currency and allowing users to pay in the currency of their country can make your customers feel at home while completing purchases.

With Razorpay’s International Payments feature, we have introduced multi-currency support for up to 100 currencies including the popular United States Dollar, Great Britain Pounds, Singapore Dollars, Euro and UAE Dirham. See the full list of supported currencies here.

You can now list and accept payments in the local currency of your customers based on their location and preferences.

Multi-currency support and reduced chargebacks

Accepting payments in the local currency is not only convenient for customers but can also reduce the risk of chargebacks.

Transactions processed in local currency do not incur additional currency conversion charges in their bank statements. Unknown charges in the bank statement due to changed currencies can often lead to a poor buying experience. It is highly likely that customers will request a refund or a chargeback due to dissatisfaction with the added fees and may abandon the purchase altogether. This is something that you obviously don’t want. Which is where Razorpay comes into the picture. You can increase customer satisfaction and reduce cart abandonments by integrating with international payments on Razorpay.

Accept international payments with Razorpay

Accepting payments from customers abroad is made convenient and simple with Razorpay–that too for businesses from varied industries and sectors like travel, SaaS, education, retail, healthcare, etc. International payments can be enabled with the just a click of a button through your Razorpay dashboard.

Here’s how international payments on Razorpay boosts your growth

  • Accept payments through cards issued by foreign banks
  • Instant payment gateway integration and activation
  • Support for 100 currencies
  • Currency conversion by Razorpay
  • Settlements in INR
  • Competitive pricing at 3% per transaction 

Here’s what Unacademy, one of India’s hottest ed-tech startup has to say about Razorpay’s International Payments:

Partnering with Razorpay’s support for International Payments has played a pivotal role in enabling us to seamlessly cater to our international learners. The easy integration and setup, along with support for 100 currencies has helped us take our offering to a wider audience abroad.
– Gaurav Munjal, CEO & Founder, Unacademy

ICICI Lombard, a big player in the insurance industry, also has benefited vastly by integrating with us:

With customers making insurance bookings from across the world, it becomes extremely crucial to ensure that we offer a platform that enables them to pay in all currencies. Now, with Razorpay’s International Payments supporting 100 currencies, I believe that this process will only get easier and efficient for customers to make and accept payments across borders. We look forward to building happier customers with this association.
-Pintu Mahato, Product Manager, ICICI Lombard

You can accept payments from International cards using Razorpay Payment Gateway as well as different products in our product suite:


Offer your international customers plans with automated recurring transactions on various payment modes in their own currency. Your customers can subscribe on the basis of fixed payments, quantities or specific usage.

Payment Links

Share links through email, SMS, chatbots or messengers to quickly accept payments from foreign customers. No matter where in the world your customer resides, all they need is the link to make a payment to you.


Create and send invoices to allow your customers abroad to pay instantly. You can also enable your customers to make partial payments if required.

Payment Pages

The easiest way to accept payments from international customers with custom-branded hosted pages that require zero coding, website or app. Allow customers to make donations, pay fees or buy products easily from a foreign country.

You can also accept payments in international currencies from your customers using Razorpay APIs. In the API request, along with the “amount” field, you can now pass different values in the “currency” field. It is as simple as that.

curl -u rzp_test_26ccbdbfe0e84b:69b2e24411e384f91213f22a \
--data "amount=50000" \
--data "currency=USD" \
--data "receipt=Receipt #RCPTID43" \
--data "payment_capture=1"

Get global today

To conclude, for the longest time, businesses in India have been losing out on customers and business because of the inability to accept payments from other countries. Finding the right payments partner can give your international aspirations the shot in the arm it needs to stay a step ahead and a level above everybody else.

The internet has allowed running a business to not be constrained by geographies–why should accepting payments be? Read more about Razorpay’s International Payments acceptance feature here.



RBI’s Digital Payments Ombudsman Will Help Boost Consumer Confidence

UPI transactions have seen 20x growth since last year.

The transactions have gone into millions, but what we found to be even more impressive was the average transaction value of Rs 1,700 and total transactions worth Rs 1.33 lakh crore in March this year.

This is no mean feat, especially when you consider the fact that a year ago, in March 2018, the average transaction value was Rs 787 and the number of transactions were just around 3 lakh.

India is transacting digitally using several other methods using netbanking, UPI apps, and e-wallets. The ease of transactions is there thanks to the technological innovations that we are witnessing.

However, the problems are not few either. Payments tech has a long way to go in making digital transactions more seamless and secure. We, as an ecosystem, have a long way to go and we are doing well in the journey so far.

Of course, we are ably guided and supported by government bodies like the Reserve Bank of India (RBI). All of us in this ecosystem–companies, merchants, government bodies–want the retail users to benefit the most from the ease of transacting digitally. Moreover, RBI’s latest initiative will aid in this in a big way.

The Ombudsman Scheme for Digital Transactions, 2019 aims to quickly and resourcefully resolve complaints and grievances related to digital payments.

If you encounter failed or wrongful transactions and you are unable to get them fixed with the authorized bank or payment firm directly, then you can approach a digital payments ombudsman and put forward your complaint with it.

Data on Razorpay shows that a majority of digital transactions (close to 50%) fail because they get timed out.

In the case of wrongful transactions, the response rate is typically high when the payments company or the bank is notified of failed or wrongful transactions within a period of 24 hours.

The digital payments ombudsman comes into the picture when all else fails.

An ombudsman is a government official or government office tasked with the agenda of representing the general public’s interest in a particular area. The offices of an ombudsman have the power to investigate, address and settle the issues it receives.

The RBI has currently set up 21 digital payments ombudsman offices across India. This scheme came into force earlier this year, and in its latest monetary policy statement, the RBI stated that it also aims to harmonize the turnaround time for resolving these complaints.

This is a move worth hailing because consumer complaints should be addressed and resolved in all seriousness. Bad experiences with payment services can have a telling effect on a consumer’s willingness to transact online again.

Consumers are skeptical about online services by default, especially when it comes to services that involve their hard-earned money.

The last thing they want is a transaction failing or their money getting deducted wrongfully. RBI recognizes this, and the ombudsman scheme has been initiated to ensure that consumers know that they have an official government authority to reach out to.

Of course, the RBI also has to ensure that users who transact digitally are aware of the digital payments ombudsmen.

People need to know how their complaints can get resolved and the fact that they have a government authority to reach out to in case they are unable to get issues resolved.

With the turnaround time getting optimized as well, the digital payments ombudsman will be an essential force in ensuring that more Indians transact digitally.

Security concerns are always a deterrent, especially for consumers who are yet to embrace the convenience of digital transactions.

RBI is expected to set the turnaround time by June this year, and we hope they meet this deadline. At the same time, it should also focus equally on raising awareness about the ombudsmen.

We foresee a digital future for India and while we, the companies within the ecosystem, are working at our best to ensure that the transactions are seamless and secure, having a government body looking after their interests will drive more consumers transacting digitally.

Further reading: How to File A Complaint with A Digital Payments Ombudsman