Manage Working Capital Efficiently with 100% Visibility in Settlements

razorpaysettlements

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

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

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

Settlement UX changes

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

Transparency on upcoming settlements 

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

Settlement cycle in the ‘My Account’ section

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

 

Settlement status for each and every transaction

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

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

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

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

Bangalore Contributes 35% of All UPI Transactions in January

It’s interesting to note that within two years, UPI has created a league of its own. If you recall, UPI overhauled cards (debit & credit) for the first time ever in September 2019. And it continues to do so with a 44.23% contribution in January ‘20. 

One of the major reasons for its massive adoption is the push from the government, multiple banks, and wallet players.

When launched in 2016, UPI was just an addition to the evolving modes of P2P payments. However, the easy, instant, and hassle-free usage has led this payment mode to become the champion of digital payments today. 

This January, PhonePe is catching up to Google Pay. Let’s take a look at more numbers. 

All findings in this report are based on the P2M UPI transactions made on the Razorpay platform.

 

It does not come as a surprise anymore to see Google Pay as the first choice for UPI transactions. Almost half (49.08%) of the total UPI transactions on Razorpay were carried out via Google Pay alone. 

Close to Google Pay’s heels was PhonePe with an impressive share of 30.08%. And, in the third spot,  PayTM contributed 10.21%.

The other UPI apps that did not make it as big but got some traction are ICICI, SBI, Axis, and HDFC with 1.44%, 0.38%, 0.11%, and 0.06% respectively. 

Let’s also have a look as to how each of these apps grew individually. With a high spike on the charts of PhonePe and PayTM (growth of 13.6% and 17.95% respectively), Google Pay, one of the most preferred options saw a growth of 1.56% while BHIM saw the other side of the story, a decline of 3.24%. 

The other UPI apps on the list were the brick and mortar banks making their way into the wall-less world. SBI saw a growth of 15%, Axis climbed up by 4.95% while HDFC saw a growth of 1.83%. 

Move over, plastic money (January ’20)

While the users have given a safe corner to UPI on their screens and minds, the race between UPI and cards have gotten the most interesting spectators.

Here are some insights:

  • UPI contributed  44.23% of the total transactions that were made on the Razorpay platform
  • Cards comprised of 39.62% of the digital transactions while Netbanking stood third with a share of 9.05%
  • The rest of the modes were wallets (3.56%), bank transfers (2.41%), e-mandate (1.06%), and EMI (0.06%)

UPI in India – adoption and usage (January ’20)

In the effort of enabling digitalization across the nation, UPI has been a role player. In other words, UPI has easily been able to bridge through the set norms about the hassles of digital payments. The mobile-only payment option has made its way to become the primary payment option. But do you know how the individual states and cities contribute to the overall economy via UPI? 

Take a look:

  • Karnataka gets the tag of the most digitized state yet again by making up to 24.94% of the total UPI transactions that took place across the country. Among cities,  Bengaluru was the biggest contributor eating up a whopping 35.5% of the share
  • Maharashtra stood second in the row by contributing 15.2% with Pune contributing to 10% 
  • Thirdly, the southern state of Tamil Nadu contributed 10.21% to the overall UPI transactions in the month of January

Note: You may wonder how Karnataka’s contribution is 24.94% while Bangalore is 35.5%. 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 top 15 cities and calculate their contribution.

UPI in the last 6 months

Now, let’s also take a look at the past 6 months to understand this game-changer.

UPI saw its biggest growth jump in the month of September 2019. This was a striking hike of 39.56%! Just once in the past six months was there a dip in UPI usage, which was in November. From December 2019 to January 2020, UPI climbed up the ladder by 6.89% marking an incredible start to the new year, setting a benchmark for UPI in the months to come. 

UPI in 2020

In the upcoming months, we expect UPI to move ahead at this very pace. Being one of the most groundbreaking innovations in the payments space, UPI has come a long way from where it started. 

UPI will also be a gamechanger in the recurring payments space. NPCI has announced that consumers will be able to make recurring payments through UPI very soon. We believe that this will be the next big thing to take UPI forward by leaps and bounds in 2020.

Let’s wait and see how UPI will continue to explore new grounds in the Indian payments space in 2020. 

Now Collect Payments Faster with Payment Links Reminders

payment links reminders

Here’s an interesting fact: More than 40% of the B2B sales made in India are given on credit! This has been the nature of business in India for a very long time. And it’s not changing anytime soon. The relative or absolute pain of chasing after payments is immense. Almost every business, big or small,  endures this ordeal almost every day.

If it is one thing to close a deal with the ambivalent Indian customer, it is quite another to collect payments from him or her. It often happens that a customer or client leaves the business hanging with unrequited payment requests.

Razorpay Payment Links has been one of our earnest endeavours in trying to solve this problem. Instant links to collect payments instantly! In the last one year, we have seen a tremendous growth of our product with more than 1 crore payment links being created.

While this makes us feel proud about being able to help the smallest of businesses to the mightiest of banks collect hassle-free payments without any coding in a matter of minutes, we also know that getting payments on these links is certainly one of the most daunting challenges for them.

The typical ordeal for an MSME goes like this.

Day 0 – “Hello ma’am, we are so happy you want to buy our service, let me send out a payment link to you right now..”

  • Link sent 

Day 1 – “Hi, I hope you liked our service. Just wanted to check if you are having any difficulties in finding the payment link? Please let me know.”

  • Few days later 

Day 5 – “Hello ma’am, for the service you had used last Friday, we still haven’t received the payment. I have resent the link to you“

  • Business resends the payment link 

Day 6 – “Ma’am, payment is still pending”. To this, the customer says, “Can I pay you by an account transfer or UPI?” The businessman replies, “Of course, you can open the link and do so. I will also send you the account details and UPI ID additionally.”

  • The customer finds it difficult to find the link and sends the money via account transfer
  • The business spends half a day in carrying out the payment reconciliation, using the UTR of the transfer and again calls up to confirm with the customer

This is probably a softer version of what really happens. It is not unheard of for businesses to even send someone over to collect the payment in cash. While some of this is problematic owing to structural and possibly, cultural underpinnings, there is still a window of opportunity for us to deliver more value to our merchants.

Introducing reminders on Razorpay Payment Links

Payment Links will now come with automated reminders, which are orchestrated by the system based on the payment status of the link. These automated reminders will help you do the following:

  • Increase the number of paid invoices and links
  • Reduce cost and manual effort required to collect payments
  • Reduce the number of days taken by your customer to make the payment

You can either schedule the reminders based on the date of sending the payment link, or if you set an expiry to the payment link, you can have the reminders sent before the payment link expires.

“Schedule a reminder 1 day before expiry”
“Schedule a reminder the day after you send the link”

The reminders will be sent on SMS/email or on both.  The reminders will be sent at a time in the day based on our analysis of the payment patterns that we have noticed across a wide range of consumers and industries.

razorpay payment links reminders

Our merchants cited that automated reminders can complement the pursuit process in terms of the number of touchpoints through the collections process (SMSes were cited to have a better impact in this regard.) This can also be of help in nudging customers if they have been issued a link, which they haven’t paid yet. A classic example would be where a customer has expressed interest to buy but hasn’t crossed the threshold to go ahead and make the payment

We already have over a few hundred merchants sending 100,000 reminders using this product, just through organic discovery in the early rollout phase. I would suggest you go ahead and take a crack at it as well.

Yes, we can …get paid faster!

Don’t use Razorpay Payment Links yet? Start collecting payments without a website or app today!

Also read: Introducing the Payment Links Chrome Extension

Big Bang Reforms to Bring the Economy Back on Track

budget 2020 startups esops msmes

It took quite some time coming, but when they did, the reforms came as big bangs in Budget 2020.

Our Honorable Finance Minister, Nirmala Sitharaman presented her second Union Budget at a time when the Indian economy is witnessing its biggest slowdown since 2008. The economy needed a Budget to bolster growth by way of increased consumer demand, higher employment rates and ease in corporate as well as personal taxation. The FM delivered on all three counts.

And she adopted a three-pronged approach to do that – by focusing her Budget speech around aspiration, economic development and compassion. There was the possibility that this Budget would end up being merely a vision statement of the government, but thankfully, we believe it will give the economy that impetus it really needs. 

Of course, even though the Budget had a lot for businesses, big and small, the highlight will remain the new personal income tax regime. Income tax slabs have been revised to lessen tax burden on the middle class, thus increasing their disposable income and purchasing power. This is great news not only for consumers, but businesses as well. Higher purchasing power translates into higher sales for businesses, after all. This encourages businesses to innovative job creators.. 

Like the Finance Minister said, entrepreneurship has always been the strength of India. Indian businessmen are risk takers who come up with disrupting solutions. And as someone who belongs to the robust startup ecosystem of India, I can say for all of us that the proposals presented in the Budget for startups and MSMEs will go a long way in boosting the economy.

For me, the two most important announcements in the Budget were around reduced compliance for MSMEs and relief in ESOP taxation.

The FM has proposed that the audit threshold for small traders and MSMEs will be raised from Rs 1 crore to Rs 5 crore. This means that there will be no requirement for businesses to get their accounts audited  if their annual turnover doesn’t exceed Rs 5 crore. The one caveat here is that this will apply to only those businesses that carry out less than 5% of their transactions in cash. This move will decrease compliance requirements for small businesses and give them one more strong reason to accept digital payments.

For startups and their employees, the relief in ESOP taxation is a major positive to have come out of the Budget. The perquisite taxation at the time of exercising ESOPs has been deferred to 5 years or till they leave the company or till they sell their shares, whichever is earlier. This move will incentivise talent to work for startups. I had spoken about this to the media in my pre-Budget expectations as well. ESOPs are often a significant component of a startup employee’s compensation, and not having to pay tax at the time of allotment of shares will work wonders for the best talent in India to continue being a part of this burgeoning ecosystem.

Another huge plus for startups for the increase in turnover limit for tax exemptions, from Rs 25 crore to Rs 100 crore. The eligibility to claim this exemption has also been hiked from 7 years to 10 years. What this means is that startups with turnover below Rs 100 crore will not have to pay tax on profits up to 10 years.

Coming back to the MSME sector, it was heartening to hear the FM say that 5 lakh MSMEs have so far benefited from the restructuring of loans. I am happy that the Finance Ministry has asked the RBI to extend this debt restructuring window by one more year. This, along with the proposals to introduce an app-based invoice financing product and a new logistics policy, will make MSMEs more competitive and ease their working capital issues

Among the other notable Budget highlights that caught our ear were on the lines of encouraging entrepreneurship within the country. The single investment clearance cell that will aim to expedite the process of setting up a business by merging all required licences into a single hub is great news. In a similar vein, the digital platform for seamless application and capturing of intellectual property rights will help startups protect their original ideas. India is already moving up in the Ease of Doing Business index and both of these endeavors will further help. 

Overall, I can only say that the traditional bahi-khata wrapped in a red cloth, which has replaced the corporate briefcase, seems to be bringing good news for the economy. India needs a clean, reliable and robust financial sector to pull the economy out of the slump. And Budget 2020 was a step in the right direction. There is spirit, there is hope and now, there is also a clear roadmap. 

This article was first published in Financial Express.

budget 2020 highlights startups msmes

Razorpay Partner Program: Earn Commissions by Becoming a Reseller

razorpay partner program

The payments landscape in India is at its most evolutionary path. Digitization of payments is a win-win for everyone involved, after all.

Having already offered digital payment solutions to over 8,00,000 businesses in India, we believed it was time for us to build an affiliate program for partners to bring more businesses on board the digital payments ecosystem. 

We had opened the doors to the Razorpay Partner Program a few months back with that in mind.

With the Razorpay Partner Program, not only will you have a channel to earn a sizable side income but also assist growing MSMEs in combating one of the biggest challenges – hassle-free and secure online payment systems.

What is the Razorpay Partner Program?

The Razorpay Partner Program is a referral program through which you can offer the Razorpay product suite to your clients or customers and get rewarded for the same. The program then becomes a source of additional income for Razorpay partners.

razorpay partner program

This affiliate program is not just limited to agencies and companies alone. Even individuals, freelancers or unregistered businesses can be a part of this program and earn commissions by referring businesses to Razorpay.

Who can be a part of the Razorpay Partner Program?

Simply put, anyone from a student to an e-commerce consultant can partner with Razorpay for the affiliate program. Here’s some of the popular categories amongst existing Razorpay partners:

  • Web & app developers
  • Digital marketing service providers
  • Web hosting services
  • Bloggers and influencers 
  • Freelancers & unregistered businesses
  • E-commerce consultants
  • Individuals & students

Anyone ranging from an enterprise business to an individual with a client base that needs online payments solutions for their business can be a part of this referral program.

Here are the primary reasons to help you understand why should you become a part of the Razorpay referral program:

  • Fast & seamless onboarding: Get started with Razorpay in less than 5 minutes with 100% paperless onboarding
  • Lucrative rewards for all: Earn commissions for every transaction carried out by your affiliate accounts
  • Extensive partner support: Get features like bulk email, chatbot support, refund tracking system along with a dedicated account manager
  • Powerful dashboard: Take better business decisions by analysing detailed reports about payments, settlements and refunds
  • API driven products: Save on time by using our ready-to-use integration kits for leading service providers like Magento, WooCommerce, Shopify and so on
  • Multi-currency support: Razorpay supports over a 100 foreign currencies 
  • Robust product suite: Get a solution to all your payment issues on one platform: Payment Links, GST-compliant invoicing, Payment Gateway, subscriptions and a lot more

We are trusted by thousands of partners coming from all across India.

Here’s what Shashwat Swaroop from Marmeto has to say about the Razorpay Partner Program:

The suite of products Razorpay has is just amazing. They are easily integrable, super user-friendly and highly reliable. The Partner Program has pushed the horizons even further with an amazing support and handhold approach. We now have more power to build secure and scalable solutions for all our merchants. Kudos to the team!

How to get started with the Razorpay Partner Program

The process to start referring and earning is as simple as it could be. Just follow these steps:

Step 01- Visit https://razorpay.com/partners/ and enter your details 

Step 02- Once the signup is complete, you will get access to the Partner dashboard 

Step 03- Add your merchants’ details and invite them to complete their KYC 

Step 04- Earn a fixed commission the first time a merchant transacts and continue earning a variable commission right through his journey with Razorpay 

What makes the Razorpay Partner Program different from others?

While there is a list of affiliate programs that are up and running, there arises a question: What makes the Razorpay referral program better than the rest? Here’s your answer:

  • Widest range of payment methods, ranging from credit cards, debit cards, netbanking, EMI, wallets, UPI, BharatQR. You name it, we have it
  • 100% online onboarding for merchants across any line of business
  • Dedicated account manager for each partner
  • 24*7 assistance by our team for a hassle-free experience
  • Personalized dashboard for every partner for easy tracking and better decision making

What’s in it for your customers to onboard?

No more worries about collecting online payments! While you as a business will earn awesome incentives, the customers you onboard enjoy a list of perks like:

  • No setup fee, no annual maintenance charges
  • 24/7 fraud protection via Razorpay Thirdwatch
  • Wide range of products
  • Frill-free solutions like Payment Links and Payment Pages
  • Easy and quick integration kits 
  • Industry best success rates 
  • Subjective free credits

The Razorpay Partner Program is a win-win for partners and their customers. While partners earn commissions by providing the most trusted payments solutions at special prices, their customers are able to grow their business & earn their trust.

Become a Razorpay Partner today!

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

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

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

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

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

Here are a few nuggets:

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

Growth of digital payments in India

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

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

The Era of Rising Fintech – Delhi edition

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

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

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

What we can expect in 2020

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

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

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

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

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

End of the line

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

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

fintech report razorpay delhi

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

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

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

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

Here’s the circular for your reference.

Source: IncometaxIndia.gov.in

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

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

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

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

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

How to accept B2B payments in UPI and RuPay

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

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

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

Features of Razorpay Payment Gateway:

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

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

Features of Razorpay Payment Pages:

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

razorpay payment pages

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

Features of Razorpay Payment Links:

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

razorpay payment links

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

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

Data Engineering at Scale – Building a Real-time Data Highway

At Razorpay, we have data coming into our systems at an extremely high scale and from a variety of sources. To ensure and enable that the company can operate by placing data at its core, enabling data democratization has become essential. This means, that we need to have systems in place that can capture, enrich and disseminate the data in the right fashion to the right stakeholders. 

This is the first part of our journey into data engineering systems at scale, and here, we focus on terms of our scalable real-time data highway. 

In the subsequent articles, we will be sharing our ideas and implementation details around our near real-time pipelines, optimizations around our storage layer, data warehousing and our overall design around what we call a “data lake”.  

Understanding data classification

The idea of building a data platform is to collate all data relevant to Razorpay in every way possible in a consolidated place in its native format, that can be later processed to serve different consumption patterns. 

And, in this regard, the data platform needs to handle a variety of things (included but not limited to) like data governance, data provenance, data availability, security, integrity, among additional platform capabilities. 

In order to do any of the above, we need to understand the nature of the data. At a bird’s eye level, data within Razorpay, will broadly fall into 2 categories: 

  1. Entities: Capturing changes to our payments, refunds, settlements, etc will happen at an entity level where we maintain the latest state (or even store all the states) of each entity in our storage in multiple manifestations that can serve all kinds of consumers later
  2. Events: Applications (internal, external, third party) sending messages to the data platform, as part of any business processing. And by this, we broadly mean any and every system that ever interacts with the Razorpay ecosystem, which can potentially end up sending data to the data platform. As much as the respective databases can only answer the final state, the events help us understand, how each system/service reached its final state

Evolution and need for a scalable real-time data highway

To understand why we need to build a real-time data highway, and with the explosive growth we have seen, we have constantly been in the quest to answer some of the following questions:

  • What has been the result of some experiments we do?
  • What is the success rate of different gateways, payment methods, merchants etc?
  • How do we make our internal business metrics available to all the respective business and product owners?
  • How can our support, operations, SRE and other teams monitor and setup alerts, around the key metrics across different products and services?
  • Ability to slice and dice all our products, across 100s of different dimensions and KPIs

What was before?

Before we jump into solving some of our above asks, let us briefly look at what we used to have to answer some of these. We built a traditional ETL pipeline, that queries our application database (MYSQL) on a batch interval and updates an internal elasticsearch cluster. 

Not only does this power our customer facing analytics dashboard, but also was fronted by an authenticated kibana dashboard for doing all the above activities. For a certain set of business folks, the data was piped into tableau over s3/athena. For managing the ETL pipeline, we had written a framework on top of apache beam to pull the respective tables, with the joins and transformations, in a composable  ETL pipeline. What this meant was simply a matter of updating a few configurations for a new pipeline. 

At a very high level, the architecture of such a system, looks like the following: 

data engineering razorpay

  1. Input data is read through MySQL in a window period and make a PCollection of payments with payment ID and details as <K-V> pair
  2. In the next transform, we fetch key merchants and use payments formatter to get output data PCollection
  3. In the final step, we write the PCollection to elasticsearch.
  4. Kibana is used as a BI tool to monitor the payment success rates, dashboards

And to serve our customer facing analytics dashboard, we wrote an internal python framework and an API layer that translates an SQL query to an elasticsearch query. As of today, elasticsearch versions 7 and above support built in SQL query. We have, however, been running this framework, successfully in production for over 2 years(much before such a feature was available on elasticsearch) and is serving all our merchant analytics, straight, using the above.

Even with the recent versions of elasticsearch, some our aggregations cannot be directly translated into elasticsearch SQL query format. So, in essence, the merchant/customer dashboard, queries our internal analytics API, using a rest endpoint with the SQL like query, which is converted internally into an elasticsearch query, with the respective aggregations run and presented back to the front end layer for building the visualizations. 

This only solved the need for physical database related changes. In addition to the above, our applications, also emitted events specific to different use cases. 

To initially get this working, after trying several expensive tools, we settled at using newrelic insights to power all our events use cases. We have been using newrelic for all our APM use cases and we ended up powering our events and other metrics using insights. 

As much as it worked for over 2 years, it started becoming quite expensive. In addition, detailed funneling and long term queries became extremely difficult. More than all, it couldn’t be easily correlated to our database changes, primary due to the fact that the events were real time, while the data capture was in batch mode. Also, joining visualizations across newrelic and kibana was turning out to be painful. In essence, the architecture for this system looked like the below.

data engineering razorpay

The following were some of the additional issues we saw with newrelic:

  • Data is locked with newrelic, not easily exportable, data retention for 3 months only (retention is calculated based on usage)
  • Some of our funneling queries, produce incorrect results for old data
  • Subqueries are not possible
  • The number of results capped at 1000 rows max
  • Negative funnels are not possible
  • Reference to a property from a top-level query in a bottom-level query for the funnel is not possible
  • Order of events is not regarded in funnels. While creating funnels, if your funnel says A -> B -> C, even those sessions will be counted for the funnel when the actual order of events was C -> A -> B
  • Since newrelic is an external system, any data enrichment(e.g.: key mappings, customer mappings etc) cannot be applied on the fly. Data enrichment cannot be done, post facto. This poses a heavy challenge when multiple services want to enrich a request that spans across different services
  • In addition, we cannot maintain any specific lookup tables(if needed) to enable custom enrichments(e.g.: geo ip lookup, mobile device mapping, user agent mapping etc)

What was the problem with the above?

While the above system has been serving all the above needs, it presented us with the following challenges:

  • As it is a traditional batch system, we will have delays in terms of being able to slice and dice in real time
  • Scaling elasticsearch for heavy business queries was challenging. As a result, we had to setup multiple elasticsearch clusters(for internal and customer facing use cases). In addition, tuning elasticsearch for our needs became a constant challenge
  • Data governance: We had to build a whole lot of access control mechanisms on top of kibana to ensure role based access control. Elastic search only supported search guard, which came with its own performance issues
  • Joins: Some of our dashboards required us to join across a variety of databases and tables. Elasticsearch, inherently does not support joins. So, the above means, we had to make constant modifications to our ETL pipelines, to ensure we are able to keep our indexes, upto date, based on these every growing needs
  • Schema Evolution: In addition to the above, our internal application schema is constantly evolving and for every such evolution, we had to rely on elastic search index versioning and aliasing strategies to ensure data correctness. In addition, this required us to backport data across different indexes
  • Cross join events with db changes: As mentioned above, we couldn’t easily do causation-correlation analysis at any given point easily. We had to export reports from each of the above systems(newrelic, tableau, elasticsearch) and needed manual intervention to understand any issues at hand
  • Availability: We also wanted all of this data, in some fashion, to be available to our data scientists and that also was turning to be cumbersome. This again, needed multiple different kinds of exports. In addition, the data governance rules become worse to deal with, for all these situations

In addition to the above, we had multiple BI solutions being used internally for different stakeholders:

  • Engineering wanted to query through SQL like interface
  • Product Analysts preferred custom dashboards
  • Business analysts wanted richer visualizations
  • Marketing wanted other integrations around Hubspot, Google Analytics etc

In essence, there was a strong need to converge all our BI use cases into a single unified platform. The above issues, were inhibiting us, in terms of exploring and analysing the data within the entire ecosystem. Earlier this year, our product team arrived at a single BI tool, to which all data will be tied to.  

Evolving to a real-time data pipeline

Sometime early this year, post the decision on unifying the BI tool, the data engineering team was given the task of building a real time pipeline, served through the unified BI tool for handling the above issues. 

The data engineering team was already building a scalable data lake for resolving some of the above issues. However, with the need to handle some of our peak load transactions and improve our operational excellence, the product team prioritized having a real time capability that needed to be exposed to all our internal stakeholders, within the lake. 

The long-term idea is to expose these capabilities to our customers, on a real time basis, thereby eliminating our older version of the analytics dashboard. The data engineering team started having a close look at the scale of the problem to be handled. Here is a high level summary of our findings:

  • We do several million transactions per day(~100M)
  • With just a small fraction of our application stack integrated into the data engineering platform, we are generating close to 0.5 billion events a day
  • The compressed size of our data within the lake, at this point was close to 100+TBs.

All of the above, just within a few months of building the data lake!

Lets understand the above in a little more detail, before we present the solutioning here:

  • We have a variety of micro services that run as part of our core payment gateway system to handle a single successful payment
  • Post a successful payment, there are a variety of other services that handle different post payment processing activities like refunds, settlements etc
  • In addition to the above, we have other products that directly and indirectly use the core payment gateway services like subscriptions, invoices etc
  • Our front end and mobile SDKs emits a variety of events into our system. We cannot use third party systems like google analytics etc, as per PCI norms and other CORS issues. So, all these events have to be piped into the lake
  • Over and above these, our internal micro services also emit events during different stages of their processing lifecycle

To solve all the above issues, we divide our discussion into real time entities and real time events. 

Real time entities

Writing to a database is easy, but getting the data out again is surprisingly hard. If you just want to query the database and get some results, that’s fine. But what if you want a copy of your database content in some other system like data lake for real-time analytics?

If your data never changed, it would be easy. You could just take a snapshot of the database (a full dump, e.g. a backup), copy it over, and load it into the data lake. This poses 2 different kinds of problems:

  1. Most of the data goes through a state machine and hence, the state of the data changes rapidly
  2. Getting the up-to-date view of this data is challenging in real time.

Even if you take a snapshot once a day, you still have one-day-old data in the downstream system, and on a large database, those snapshots and bulk loads can become very expensive, which is not great.

So, what does the above mean?

  • We will need to incrementally load data into a real time streaming pipeline that directly manifests into the lake
  • We cannot expose our internal primary database to our BI tool as it stores a lot of sensitive information
  • We want our real time stream to be as performant as possible
  • We do not want to keep the data in our real time stream for eternity, as its primary use case is around instantaneous monitoring, visualization and alerting

Keeping the above in mind, the data team had made the following assumptions:

  • We do not need all of this data for eternity, unlike our traditional OLTP store. So, we decided to store the data as a rolling window update over seven days(1 week)
  • We will still want to maintain some basic governing facts loaded here for eternity(e.g. Merchants, customers, card bins etc)
  • We will want this system to be extremely performant and being able to query as fast as possible
  • Some of the rolling aggregations are fairly complex and needs to be computed with as much data as possible to achieve the desired latency
  • We will want the change data to be captured here, as soon as possible
  • In essence, all operations on this store will only be upsert operations, as we do not want to keep a copy of any older/stale data

At a very high level, our architecture for solving this problem looks like the following:

data engineering razorpay

 The flow of data will look something like this:

  • MySQL Read Replica instance used to pull the data
  • We use maxwell to handle the CDC(change data capture) and also ensure, we filter out sensitive information before reading the bin log
  • A Maxwell daemon detects change data capture (CDC)  to this DB and pushes them to a Kafka Topic
  • A spark consumer will now keep reading from the kafka stream and keep batching updates every few seconds(note: the minimum batch duration available in spark is 100 ms)
  • Finally, Change data is pushed to the real time data store, where the queries can be executed from the BI tool.

Choice of real-time data store

We did a variety of evaluations on some of the existing data stores for the real-time use case. In essence, we wanted SQL capabilities to be used by the unified BI tool. Most folks within the organization are comfortable with SQL and hence, we wanted something that fits the bill. 

After evaluating a bunch of OLAP engines, we arrived at timescaledb as a choice of this engine. Timescaledb is an underlying postgres engine with a timeseries extension. This gives us the ability to not compromise on the SQL like capabilities and also gives some of the advantages over rolling aggregate computation etc.  In addition, we will want the operational cost to be extremely lesser with self-healing and auto-scaling abilities possible. 

We didn’t want to spend large amounts of money investing in a paid solution like memsql etc to solve these problems. Considering all the above, TimescaleDB seems like a reasonable place to start, simple enough to set up and maintain and seems to meet all the respective criteria.

Real time events

As mentioned above, as of today, only a small fraction of all our workloads(front end systems, mobile SDKs and a few core transactional apps) are pushing events into the data lake. Despite this, the data lake is receiving close to 0.5B events per day. 

As you would’ve guessed, with all the existing services pushing events, this number is only going to grow significantly. For a long while, we had an internal event ingestion pipeline(codename: lumberjack), written in go,  which primary relays incoming events from multiple producers into desirable targets. 

In essence, all that is needed for any app, to tie its events into the lake, just needed to register itself through a configuration. The reason for choosing go over java or others, is to achieve an extremely high level of concurrency, with minimal operating metrics(cpu, memory etc). In addition, this was designed as a heavy I/O bound application, as most work was simply processing, doing minimal validation/enrichment and transmitting events. 

We already discussed some of the challenges we had with events being pushed to newrelic. So, we wanted to move all of the events, into a central store, from where we could query using our unified BI tool. 

We started making minor architectural changes to our event ingestion pipeline to arrive at the following:

data engineering razorpay

Lumberjack workers: We were originally pushing to aws SQS. We wanted streaming capabilities and SQS was only supporting long poll. So, we decided to move this to Kafka streaming. Kafka streaming gave us the ability to replay and manage offsets effectively. 

Consumer : We completely removed the task of pushing events to newrelic. This way, we got rid of the Kafka consumer, which was running on the lumberjack side. We moved to this operation to a spark streaming job, which will read messages from kafka in order of appearance and stream this to an S3 bucket. 

Sink – S3: Spark streaming job will sink data for every micro-batch interval, which is configurable. Currently, we have set it to 1 min. Every micro-batch is accumulated in memory, so we can configure the sink interval based on data size. Again, the minimum micro batch interval supported by spark is 100ms

Query execution: We are using presto for query execution. The advantage we get here is sub second responses for a few million records. 

S3 – Partition: In order to further speed up the query execution of the events across multiple days, we create daily partitions(msck repair) to ensure the users can query using the created_date as the primary partition key. This has been configured into our BI tool. 

Infrastructure setup

Our entire infrastructure for all of Razorpay has been deployed and operated via kubernetes. In essence, except for the spark setup, we run and manage all the other aspects via kubernetes. 

So, in essence, maxwell has been running as a deployment, kafka is running as a kubernetes daemonset, exposed to the spark pipelines and timescaledb also has been setup using a kubernetes daemonset backed with a remote AWS EBS volume. Connectivity from the BI tool is enabled to the timescaleDB over NLB and the AWS Security group associated with timescaledb, ensures security over the setup.

 The above aside, the spark cluster has been exposed to our BI tool, controlled again via AWS security group and only allows presto queries to be executed. We use prometheus for all our internal metrics. 

Currently, since spark doesn’t support out of the box metrics to be injected into prometheus, we have funneled the metrics to lumberjack from spark, which is directly scraped by prometheus and exposed on our dashboards. 

Databricks has an upstream patch on spark, but that’s not yet merged into spark core, for pushing prometheus metrics into a push gateway. (TBD: we might need a separate section around metrics here and also add diagrams for infra).

The major challenges

Real-time data challenges:

  1. Since Pipeline has to handle DDL and DML both logs, so the order of committing the statement to the data lake is very crucial which was a major challenge for pushing data in the same order as it was generated. We have implemented custom logic to create the order by considering the bin log file name and offset of that file. We have an internal schema registry deployed again on kubernetes, to manage the same. This allows us to track schema evolution over a period of time and also ensures we can keep multiple copies of the data, on the lake
  2. Kafka has slowed down periodically due to limited partitions. This leads to a lag in the data lake, which was fixed by partitioning on unique IDs 
  3. The Dashboard queries performance is bad so we implemented a custom user defined function which aggregates the data in a rolling time window and caches the old aggregate data
  4. Because high transactions happen in the DB system for humongous tables such as payments, orders, etc. and how transaction happen in small tables like marchent we can not distribute load uniformly across partitions. This leads to Data write performance skew
  5. Mysql GTID also cannot be used around sequencing in certain cases, and we have built custom sort and de-duplication mechanics to handle out of order events
  6. Replication delays: In order to avoid AWS inter AZ data transfer cost, and to avoid pressure on the primary databases, we have designed maxwell to read from the replica. As a result, at peak times, if there is a replication lag, our real time pipelines expect the same delay on processing and transmission
  7. Scaling challenges around timescaledb: At the moment, timescaledb inherently dosen’t support clustering options. We plan to move this layer either using kubedb into a clustered mode, or perhaps use other mechanisms to ensure we have better clustering / MPP kind of execution
  8. In addition, we can cut down the spark processing time, by moving this pipeline into flink, which can directly stream kafka to timescaledb endpoint

Real-time entities challenges:

  1. Since the events are pushed in small micro batches, this leads to a lot of cost overhead on S3. In addition, during query execution, we were bitten by hadoop’s small file problem. We are still balancing the right micro batch interval
  2. In addition, we wanted to have a unified way of keeping this data. So, we plan to move the immediate events into the real time data store and eventually sync up into the partitioned tables, on a daily basis
  3. With the above change, we can quite simply move the spark processing to flink processing, where the flink jobs can directly stream to the timescale db endpoint and spark process the daily batches with partitioning.

Learnings and pitfalls

  1. To replicate MYSQL DB transaction in the correct order on a Non-MySQL datastore, for ordering the DB transactions and replay the events a combination of GTID, XID, event types (commit start and end ) need to be used
  2. Spark streaming has a lot of overhead and doesn’t play well when used with small batch sizes (millisecond level, that’s why we moved to seconds level batch)
  3. Running SQL queries from spark carries a lot of overhead. We need to instrument the right metrics, analyze queries in a timely fashion and enable the right kind of caching for optimizing the queries
  4. A large portion of our data lake is built on aws s3. This comes at a significant cost, if not tuned well. For instance, the s3 data transfer cost, bit us quite badly a few months back. As a result, we had to go through significant infra optimization, enable vpc endpoints among others. Cost optimization, continues to be an ongoing exercise
  5. Optimizing S3 by itself, has posed enough challenges for us. As we mentioned earlier, in the subsequent posts, we shall enlist our learnings, observations and the work we have done to optimize these

The road ahead

As much as we have been able to build some of these things at an extremely efficient scale and operationalize it, our journey doesn’t stop here. 

It has in fact, just begun. 

In the subsequent posts, we shall talk around the journey of our data platform, data lake, non real time use cases, optimization techniques adopted among a variety of subjects. 

Our journey thus far, on the data side, hasn’t really been that smooth. We have failed, learnt and recovered. On the other side, some of the most challenging problems we have faced, has been a lot of fun to solve too. We wish to learn and share our learnings through these.

If you are interested in working with us or solve some exciting problems, please reach out to hiring@razorpay.com or visit our careers page.  

Authors: Birendra Kumar (Head of Data Engineering, Razorpay) and Venkat Vaidhyanathan (Architect , Razorpay)

Installing Razorpay Thirdwatch for WooCommerce in 5 Simple Steps

WooCommerce is one of the biggest platforms in the world for setting up an online store and rightfully so, owing to its seamless functionalities and ease of use. Thirdwatch from Razorpay is a plugin designed to detect fraudulent orders and reduce RTO for e-commerce businesses. If you haven’t been aware of Razorpay’s entry into the e-commerce industry, allow us to explain to you what we’ve been up to and how to install Razorpay Thirdwatch in 4 simple steps.

What is Razorpay Thirdwatch?

Razorpay Thirdwatch is a first-of-its-kind solution for fraud prevention for e-commerce businesses. Thirdwatch is an AI-powered platform that enables online sellers to prevent Return-To-Origin (RTO) orders and reduce losses up to 30 percent. Thirdwatch’s AI engine evaluates every order in real-time and provides actionable results to weed out orders likely to result in RTO. 

One of the small, yet significant components of Thirdwatch is Buyer Action, a feature that automates confirmation from customers. This can significantly reduce manual intervention while keeping fraud at bay. Read more about Buyer Action and how it impacts business here.

How does Thirdwatch’s AI-engine work?

Once integrated, the solution captures 200+ parameters from your online store analytics. It leverages an ensemble of AI algorithms and graph algorithms to flag an order with a high risk of RTO and enables the seller to either cancel or take corrective actions.

What happens to the processed orders?

The processed orders transition into the following two states –

  • Red: If the order is marked red, then the seller can either decline the order or take corrective actions like updating the address or getting a confirmation from the customer on order quantity, etc
  • Green: If the order is flagged green, then the sellers can go ahead with the usual flow and ship the order

What is the basis of screening orders?

There are a variety of parameters used to judge whether an order is risky or not. Following are the key parameters that play a critical role in screening the orders:

  • Shipping Address Profile
  • Device Fingerprint
  • IP Address Profile
  • Buyer’s History
  • Buyer’s Navigation Behaviour
  • Network Effects

Are there any customization options available?

Razorpay Thirdwatch comes with a horde of options for easy customization. You can also customise the Thirdwatch plugin at the time of integration by accessing the open-source project, available here

What are the steps to install Razorpay Thirdwatch for WooCommerce?

To make it easier than ever for merchants to install Thirdwatch, we’ve made a step-by-step guide to make your installation process quick, easy and hassle-free. Let’s get started!

Type 1: Direct Installation

Step 1: Download WooCommerce plugin from WordPress store using this link.

Step 2: On your WordPress dashboard, click on “Plugins” on the left tab, and search for “Thirdwatch” on the search bar on the right side.

Step 3: Step 3: Install the Thirdwatch plugin and click on “Activate”. Once you’ve activated, register your business account on Thirdwatch Dashboard from here. If you’ve already created an account on Thirdwatch, log in to your account using your email address and password from here .

Step 4: On the Thirdwatch dashboard, click on “Settings” to get your API Key. To generate an API key, enter your online store’s URL. 

razorpay thirdwatch woocommerce free installation

razorpay thirdwatch woocommerce free plugin install

Step 5: Head over to WordPress dashboard–>Thirdwatch and enter your API key–> Check “Enable Thirdwatch Validation”–> Click on “save changes” (details of API key given below as well)

Type 2: Custom Installation

Step 1: Download the Razorpay Thirdwatch plugin from the WordPress Store, unzip the package and place the folder in the wp-content/plugins

Step 2: Now, click on the Plug-ins option in the left-hand bar on the WordPress dashboard. Under the Thirdwatch tab, click on activate.

Step 3: After successful installation of the plugin, click on the Settings button and check on Enable Thirdwatch Validation.

Step 4: To enter your API Key, you can sign up on the Thirdwatch dashboard for free. Upon signing up, you can find the API key in the Settings tab. Here’s a guide to fill the following details:

  • 🏁 Approve Status (Change order status when an order has been approved by Thirdwatch)
  • 🚩 Review Status (Change order status when an order is flagged by Thirdwatch)
  • ⛔️ Reject Status (Change order status when an order is rejected by Thirdwatch)
  • 💬 Fraud Message (Choose a custom message to be sent to the customer if their order has failed validation)

Step 5:  Head back to the WordPress dashboard–>Thirdwatch. Click on save changes, and you’re good to go!

Yes, it’s that easy to install Razorpay Thirdwatch! With all-new features like Buyer Action on Thirdwatch, it’s easier than ever to keep a check on fraud and the losses that come with it. 

Install Thirdwatch for WooCommerce today and supercharge your business like never before Start saving money by optimizing your e-commerce operations with Thirdwatch. If you have any questions, make sure to get in touch with us here, and we’ll be happy to help you with them. 

Understanding the New Age Ways of Business Banking

business banking

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

What is business banking?

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

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

Methods of business banking

Business banking can be carried out in a few ways.

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

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

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

What is neobanking?

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

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

How does neobank help with business banking?

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

Business banking via neobanks helps solve all these problems.

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

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

Read more: Everything You Should Know About Neobanking

What is open banking?

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

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

How can you improve your business banking with open banks?

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

Use cases for API banking

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

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

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

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

Open banking provides solutions for all your business banking needs.

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

RazorpayX – business banking experience like never before

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

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

Conclusion

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