Payroll Changes Due to Atmanirbhar Bharat Abhiyaan

Recently, the Atmanirbhar Bharat Abhiyaan package made headlines all across the country. The government announced major steps that will be taken to alleviate some of the impacts of the pandemic on the economy. 

The package involves fiscal policy and relief measures for various industries as the economic ramifications of the pandemic have left no sector untouched.

Read more: Highlights from the Atmanirbhar Package

How does Atmanirbhar prompt payroll changes?

As a part of the relief package, the government also introduced a few measures that will change payroll processing to an extent. Here are the major payroll changes in effect.

  • Reduction in EPF contribution
  • Minimised TDS rates 
  • Changes in Direct Tax (ITR filing deadline)
  • Selection of tax regime (Dual Tax Regime)

payroll changes atmanirbhar razorpay payroll

EPF contribution rate

Under the Atmanirbhar package, the EPF contribution rate of both employer and employee is reduced to 10% from the previous 12%. This is for all categories of businesses that come under the EPF & MP Act, 1952. 

This payroll change is introduced to aid both employers and employees of over 6 lakh businesses manage funds in a slightly relaxed manner.

As a result of the reduction in the EPF contribution rate, employees will have access to higher liquid funds because of higher take-home pay. This also helps lower the liabilities of employers to a certain extent.

This payroll change is applicable for the months of May, June, and July.

Note: The reduced EPF contribution rate is the minimum number for the period mentioned above. However, employers and employees can make higher contributions.

New TDS rates

During the Atmanirbhar package announcement, the government also called forth the new TDS rates. 

According to the announcement, there is a reduction in the tax deducted at source by 25% for all non-salaried payments. Dividend Income, interest on Fixed Deposit, and more fall under the category and the TDS rates are applicable at different levels. 

The new TDS rates have come to effect as of May 14th 2020, and will continue to be applicable for the financial year 2020-21. 

payroll changes atmanirbhar razorpay payroll

ITR filing deadline 

The Atmanirbhar relief package also pushed forward a change in filing Income Tax Returns. 

The government announced that there would be an extension for ITR filing deadline. Earlier, the ITR filing deadline was July 31st 2020, from which the due date is pushed to November 30th 2020. 

The extension in the deadline is a part of the earlier extension made for receiving Form 16 from March 31st 2020 to June 30th 2020. This is to ease some burden on the taxpayers for the financial year.

Tax regime selection (Dual Tax Regime)

Although not a part of the Atmanirbhar package, the Dual Tax Regime has also resulted in payroll changes. The regime brings prevalent changes in the way taxes are calculated from the financial year 2020-21. As opposed to the higher tax slabs with benefits and exemptions, the new tax regime is all about lower tax slabs, but without the benefits and exemptions.

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

Suggested reading: How to Choose the Right Tax Regime

Payroll changes – how to be compliant

Since there are multiple changes in payroll, it is absolutely important for businesses to be compliant. 

If you are dealing with payroll using spreadsheets or an outdated payroll software, it can set you back in more ways than one. Change management is one of the biggest troubles if you have to implement every single one of the payroll changes. This can limit your productivity since payroll processing is laborious and time-consuming. 

Next, your HR team will have to spend long hours every month to keep up. 

If you are wondering how you can manage payroll with minimum impact while being compliant, we have a solution for you.

Opfin is 100% compliant with payroll changes

Opfin is compliant with all the new regulations that have come about as a part of the Atmanirbhar relief package. You don’t have to worry about dealing with compliance ever again! 

It is also compliant with the Dual Tax Regime, allowing employees to choose their preferred regime during the time of their investment declaration for the financial year. 

Employees can see their projected taxes for the year based on their income and regime so that they can make an informed decision keeping their tax liabilities and savings in mind. Further, you completely automate your payroll process without any manual intervention.

Also read: Automate Your Payroll Process With Opfin

Don’t rely on outdated payroll software while you can carry out your payroll operations without any interruptions. Stay up-to-the-minute with changing regulations and compliance with Opfin while it does all the hard work for you.

How to Provide a Good Shipping Experience During the Lockdown

shipping orders e-commerce business india

The COVID-19 situation has brought in waves of change that have altered societal and consumer behaviour drastically. One of the industries that are currently going through a complete change in approach is the e-commerce vertical.

From shipping to tracking, e-commerce and hyperlocal business owners are now forced to re-evaluate their business models in order to adapt to the changing world order. Last-mile delivery, complete digitization, end-to-end sanitization, contactless delivery, etc. are a few methods that have been currently innovated in order to stay afloat.

On May 8th 2020, Razorpay Thirdwatch hosted a webinar with Shipway on “Ensuring the best post-shipping experience during the lockdown”, featuring Gaurav Gupta, co-founder of Shipway and Abhijeet Gaur, Product Lead at Thirdwatch.

During this session, we discussed a few important strategies that e-commerce businesses need to follow, in terms of ensuring a good shipping experience and keeping fraud at bay. In this article, we will be covering key takeaways from the session, just in case you missed attending it. Let’s begin!

Times are a-changin- A look at the trends in e-commerce

Most e-commerce companies have resumed operations, at least in part and we’re seeing a steady growth in shopping patterns. Changing customer preferences and shopping habits have given us many learnings. Here are a few trends that we have observed after the intervention of COVID-19:

  • According to McKinsey, e-commerce businesses will grow at least 3 to 6 times in the months to come
  • About 54% of consumers are expected to cut spends in malls while boosting spends on channels like e-commerce
  • During the first seven days of Lockdown 3.0, the fashion retail sector has recovered 30% of its pre-lockdown order volumes
  • Order volume for electronic appliances increased significantly, with a recovery rate of 35% in the first week of the Lockdown 3.0
  • There has been a 5-7% rise in the average order size compared to the week before the lockdown was announced in March.
  • Amazon has grown its overall sales amid the pandemic, with revenues rising 26% to $75.5 billion
  • E-pharma and online grocery sector witnessed a massive spike of 100% during the first two stages of lockdown, with the average order size increased by 20%
  • Snapdeal reached 50% of pre-lockdown volumes within 5 days of expanded operations. Compared year-on-year, the order volumes for the first 9 days of May 2020 was 52% of volumes  in the same period last year
  • Paytm Mall Senior VP Srinivas Mothey said the company has seen the demand for non-essential items pick up in all orange and green zones.

Changing customer expectations

Just like we stated before, the whole lockdown situation all over the world has brought in waves of change in customer behaviour online. We are observing new habits online due to shifting priorities. Here are a few key pointers on customer expectations.

Direct purchase from brands

Over the last two weeks, we have also spoken to many sellers who have seen an increase in customers purchasing products directly from brands. This can be attributed to the following reasons:

  1. Customers are beginning to value authenticity over everything else. This also plays an important factor in trust.
  2. Access to the latest collections, higher varieties and a consolidated platform is encouraging customers to directly purchase at brand outlets/official websites.
  3. Deep discounting provided by big brands such as Allen Solly and Louis Philippe at their franchisee outlets is also driving more customers to brands directly.

What are customers expecting?

Shipway is a popular e-commerce solution that specializes in post-purchase experience. They help e-commerce businesses by automating order tracking and NDR management. Shipway has collaborated with many e-commerce firms all over the country to list customer expectations that we can expect in the post-lockdown period. We can expect all of these factors to directly have an impact on customer satisfaction, too. Let’s have a look.

  1. Consumers expect quick, hassle-free order fulfilment from businesses. This can be done by collaborating with shipping companies that are well connected across Tier 1,2 and 3 cities.
  2. With hygiene and sanitization as a top priority, customers are now expecting timely updates at every step along the way. A seamless tracking mechanism can go a long way in ensuring customer happiness.
  3. Customers are also looking for an expected date of delivery during these uncertain times.
  4. The best way to a customer’s heart is through great return policies. After all, returns make a huge impact on both the customer and the seller.
  5. A flawless system in place for returns, pickups, refunds, exchanges and cancellations will also make a huge difference to customer perception and will keep customers returning for more.

What can brands do?

Here are a few tips that e-commerce brands can do to keep up with the rising levels of customer expectations:

  1. Set the right expectations around delivery and return policies upfront. 60% are more likely to purchase from a retailer who tells them the exact date a package will arrive. 2 out of 3 customers check the return policy before making a purchase.
  2. Send the right communication, at the right time, through the right channel. Choose wisely between channels like SMS, emails, WhatsApp notifications and IVR calls. A few examples of communication are shipment booked, in transit, delayed delivery due to COVID-19, etc.
  3. Keep customers in a branded tracking experience. Enable a personalized tracking page for your brand for providing timely updates.
  4. Communication for returns is very important and can make or break your relationship with the customer.  Make sure to draft a suitable return communication plan according to different use-cases.
  5. Keep track of your Net Promoter Score (NPS). NPS is a management tool that can be used to gauge the loyalty of a firm’s customer relationships. It serves as an alternative to traditional customer satisfaction research and is correlated with revenue growth. Find out your NPS here.

Importance of tracking and transparency

A large part of shipping operations in e-commerce works on a strong foundation of trust between the customer and the seller. A major enabler of trust is transparency and tracking throughout the entire process.

Companies like Shipway help e-commerce companies in providing a branded tracking experience to their customers. From a marketing perspective, too, this can be extremely beneficial for brand recall. Here are a few reasons why you should implement branded tracking for your company:

  • On average, a buyer tracks their package 7-8 times before delivery
  • Keep your customers coming back for more by cross-selling options and showing recommended products on tracking pages
  •  Reduce customer queries and improve the feedback loop
  • Bring down your RTO rates and returns with the help of branded tracking pages

Why is Net Promoter Score crucial?

The Net Promoter Score (NPS) is a relationship survey that helps you understand whether your customers would recommend you to others. You can trigger auto email alerts when an NPS drops below a certain level. You can also use the NPS as a standard to optimize your customer engagement plans.

Businesses use NPS to capture feedback and assess overall customer satisfaction. With its numeric scoring, management can easily calculate their average and see how content their customers are. Additionally, the system’s standardized scoring clarifies positive and negative reviews, and the comment section available with questions provides further details justifying the respondent’s score.

Ensuring a good post-shipping experience

In conclusion, we know that e-commerce companies must follow a basic set of hygiene methods to make sure that there are no loose ends in securing a good post-shipping experience. Here are some final takeaways for you:

  • A proactive, rather than a reactive approach, is essential for an effective post-shipping experience. Reach your customers before they reach you, that’s the key.
  • Experiment and adapt fast to new technologies and solutions as per changing trends.
  • Ensure that you provide a great post-shipping experience with methods such as status updates, branded tracking pages, reverse shipment tracking, etc.
  • Make sure to automate processes outside core business operations in order to save time and resources and focus on business.

We at Razorpay Thirdwatch, too, are helping businesses fight RTO and returns during a time like this by providing a wholesome e-commerce fraud solution. If you have any questions about how we can help your business, make sure to get in touch with us at thirdwatch@razorpay.com. Check out how we’re revolutionizing order confirmations and detecting suspicious orders here!

What Is eMandate and How Does It Work

emandate by razorpay

eMandate is a digital payment service initiated by RBI and the National Payments Corporation of India (NPCI).

Imagine it’s 2001. You are in need of money for some personal reason. The only option you have is to take a loan from a bank. You visit the bank with whom you have an account and enquire about the loan details. They handover a pamphlet that details out the interest rate, documentation and collateral requirements, terms and conditions and so on.

Now you visit two other banks to compare everything and finalize on one. Then begins the entire process of gathering and compiling documents, submitting them and further waiting for them to do a couple of verifications. The entire process sounds tedious, doesn’t it? 

The bottom line is, earlier all of the steps were done manually and hence it took months to get a loan amount approved and deposited. Infact, there were more rejections than approvals due to lack of data and bank account validation. 

Cut to 2018 when eMandate was introduced. Now, think about the time you approached a bank for a home loan or a car loan and realised that you can start availing the benefits without even visiting the bank? 

The service that is bridging the gap and making the process simpler between the service provider and the end customer is eMandate. Read this article to understand more about eMandate. 

What is eMandate?

eMandate is a digital payment service initiated by RBI and the National Payments Corporation of India (NPCI). It serves as an underlying infrastructure for businesses in India to collect recurring payments without any human intervention. A mandate is a standard instruction that you provide to your issuing bank and other institutions allowing them to automatically debit the mentioned amount from your bank account. 

eMandate is a convenient way for businesses and their customers to easily manage all the recurring payments like insurance premiums, SIPs, loan installment collections, etc. This eliminates the hassles of reminders and late penalty charges that eventually proves to be a win-win for both businesses as well as their customers. 

While recurring payments in India have been present for a long time, they were primarily authorized by a physical form that the customer had to fill, sign and submit. This was an operationally expensive and manual process which took days to process. API based eNACH more commonly known as eMandate, was introduced by NPCI around 5 years ago. 

Advantages of Razorpay eMandate 

Since its introduction, eMandate has come a long way, has added more than 30 banks, and introduced real-time authorization confirmation, which has helped more industries adopt the recurring business model. Listed below are some of the major advantages of eMandates:

  • Increase customer retention: One-time digital authentication allows you to auto-debit your customer’s bank account helping your customer enjoy uninterrupted service–in the longer run building customer loyalty and customer retention. No constant payment reminders to your customers
  • Reduces friction in payments: eMandate allows a business to auto-debit a recurring payment, thereby reducing the friction of a customer logging on to the website/app to make a payment. This assures the business of continuous cash flow that it can rely upon
  • Reduces administrative costs: As the amount is auto-debited, the business teams do not have to chase the customer to make the payment. This cuts down the operational effort,  invoicing effort and cost to the company
  • Auto-reconciliation: Most of the details are tracked and captured online, hence reducing the time, effort and money involved in buying and maintaining multiple tools
  • Simple and seamless process: The entire process is simple and just needs an active bank account and card details. One time enrollment for a lifetime of hassle-free service
  • Flexibility in plan: With eMandate, the ability to debit a customer in the hands of businesses. This allows them to change the payment cycle or skip a cycle if need be. This adds to good user experience

emandate and subscriptions in India

Which industries have adopted eMandate?

eMandate has steadily grown popular and has been adopted by multiple industries. Each industry has its own challenge and uses eMandate in a unique way. Let’s look at the industries that have benefited the most with eMandate.

Lending industry

Lending businesses have seen a drastic change in the way they operate. For the lenders, one of the benefits is the ease in the collection of loan repayment. They no longer have to go running behind an individual. The auto-debit feature of eMandate helps them deduct the said amount on a particular day each month. The customer on the other end does not have to go through multiple visits at the bank. The overall turn around time is also much lesser compared to the traditional method. Recurring payment model and eMandate in the said scenario have helped in reducing the operating costs to a large extent. This has also assisted a smooth money movement for both the ends. 

Wealth management platforms 

In recent times, platforms like Wealthy, Groww, PaisaBazaar have emerged, which have made it easy for an individual to manage their portfolio, meet their financial goals, have a retirement plan in place and a lot more. Usually, these platforms offer you to consult with a dedicated counsellor or to create a plan by yourself. The risk appetite of customers has also gone up, and they are willing to invest in instruments such as mutual funds, equities, ULIPs and more.

Once a customer has decided on the instruments they want to invest in and the amount they wish to invest, businesses ask for an authorization for recurring debits. This authorization can be given digitally, authorizing your bank account via netbanking credentials or debit card details.

That’s it! With a few simple steps, you are all set to make wise choices with your finances. The best part is, neither of the parties has to manually visit a brick and mortar building. Mandates make sure a hassle-free experience for an investor and an ongoing business, without disruptions for the business. 

Life insurance

Individuals have always made it a point to invest in life insurance policies so that they can make use of them in case there comes in some unseen disaster. Earlier either an individual was asked to pay the entire amount in one go or had to make sure they did not miss out on a single instalment. With the advent of eMandates, these life insurance providers have been able to ease the process. They can now sell a plan to the customer online. And the moment the customer signs up for a plan, they can set a particular date and an amount which will auto-debit without any manual intervention from the individual’s end. Hence, in the long run, easing the way life insurance companies used to operate so far. 

Sponsorship programs By NGOs 

We are living at a time where people have understood the value of CSR activities. A lot of people have started coming forward to help those in need. Some of the activities in which people are engaged to include sponsoring education for kids, taking care of the grocery needs of a household, bearing expenses of a pet in an NGO and a lot more. 

However, with so much to do, there are chances that an individual misses out making the donation for a month. Many NGOs have started using eMandates to ease the entire donation flow so that they can do the needful at the right time without reminding the payee a number of times. 

  1. Customer raises a request for a recurring mandate
  2. The business sends an authorization request on their own portal or via a link
  3. The customer gives the authorization via netbanking credentials or debit card details.
  4. Details are sent to the sponsor bank who forward it to NPCI
  5. NPCI sends the requests to issuing bank
  6. Issuing bank either accepts the authorization request.
  7. Issuing bank shares the status with NPCI, who in turn shares it status with the sponsor bank. This status is then shared with Razorpay who in turn informs the business. All this in real-time!
  8. Razorpay activates the mandate.

subscriptions and emandate statistics

How to integrate eMandate for your business 

API Integration of Razorpay Subscriptions is simple and easy. What’s more? There is a single integration needed to go live on all modes of recurring payments – cards, eMandate, PaperNACH and the upcoming UPI Recurring mandates. 

However, if you wish to use Subscriptions on any of these modes without any integration, you can easily use the Razorpay dashboard to send out subscription links.

Conclusion

eMandates are a step forward in the world of digital payments. Many business verticals have been able to adopt this business model and have seen significant improvement in metrics like customer retention, cash flow management and a steady decline in delinquency

What are you waiting for? Sign up with Razorpay and plan your business growth now! 

Recommended Read

Retain, Engage, Scale: Three Reasons To Build A Subscriptions Business 

The “Hype” is Real in Luxury Mobility

Hype Luxury Mobility

Fast, flashy and chic luxury cars, among all the other machines, are a part of our genetic make-up, which makes them unavoidable. 

I mean, who wouldn’t love to drop a gear and disappear, right? Most of us would, but the option of renting a luxury car was only available to only a few. 

Dealing with unknown vendors, non-transparent pricing, safety issues, and poor customer experience was a perpetual problem, says Raghav Belavadi, CEO, Hype – Luxury Mobility.

Hype – Luxury Mobility was founded in 2017 to eradicate the above problems faced by people. The company offers self-drive luxury car rentals, chauffeur-driven and long-term rental services.

With over 2,800 luxury cars in 7 cities of India, Hype provides the most extensive fleet size with the broadest range of selection to premium customers.

As a tech company selecting a competent tech-driven partner was our primary focus.

Razorpay offered excellent technological innovation, price model, security to Hype’s high-value transactions and customer management. 

The multi-level payment process, updated Github code, and the ability to choose many functions like security deposit, wallet partners, EMI, and Pay Later immensely helped Hype’s customers. 

Later, the company piloted it’s high-value transactions on Razorpay for 30 days and observed 100% efficient systems and 0% downtime on their national and international transactions. 

Razorpay payment gateway

The integration was flawless and boosted our transaction speed by 40%, POD efficiency by 23% and reduced the pricing overhead by 72%.

Hype has grown over 6X in 2019 and expects to expand its operations in two more countries by 2022. The company aims to become the largest luxury mobility company on land, water and air globally. 

Q&A with Raghav Belavadi, CEO, Hype – Luxury Mobility

What was the idea behind your company’s inception? 

Hype was founded in 2017, Bengaluru to address the perpetual problem associated with luxury car rental. People who wanted luxury cars for specific occasions got tangled with various issues like renting from unknown vendors, non-transparent pricing and zero customer service.

Luxury cars have always been eye candy for people, but everybody cannot own a luxury car. Also, there was no option for luxury car rental or self-drive. 

 Tell us about Hype’s offerings. 

Hype offers car rentals in self-drive, chauffeur driven and long-term rental options. With over 2,800 luxury cars in seven cities of India, Hype provides the broadest range of selection to premium customers.

We have started a new luxury yacht rental service in Goa and plan to expand to other regions like Mumbai and Kerala. One hundred twenty thousand hours of rentals, 465 crores of assets driven, and zero incidences reflect the supreme technology-driven operations management of Hype.

Why did you choose Razorpay as your payment service provider?

We are a technology company at the core, and selecting a competent and tech-driven partner is always the focus of our operations. 

There’s a small story behind it, too. One fine day, Harshil Mathur, CEO and Co-founder, Razorpay rented a sports car from Hype. And as a happy customer, he talked to me about the advantages of partnering with Razorpay. 

The timing was right! Excellent technology innovation, price model, customer management and easy integration made Razorpay our natural selection. 

Power your payments with Razorpay Payment Gateway

Razorpay ePOS App – Simplifying Digital Payments for Offline Businesses

payment app by razorpay

The issues that offline businesses usually face with accepting digital payments include ease of use, lack of expert knowledge, multiple apps for different modes and so on.

The fact is that while we have come a long way with the digitization of payments, there are still a number of businesses that are waiting for their perfect match when it comes to digital payment apps. We, at Razorpay, are glad to announce the relaunch of our new and improved ePOS app. Read this article to know what this payment app has in store for you.

Razorpay ePOS: Not just another digital payment app

During our research, we found that the current payment collection process is complex and time-consuming in the informal sector. 

With all of the technological advancements around us, no business should struggle to get paid by their consumers. They should rather be able to focus more on their business growth. They should be able to reach a wider audience spread across geographies.

And hence, we came up with Razorpay ePOS: the easiest way to accept digital payments instantly. One of the latest offerings from the Razorpay product suite, this product is custom-tailored to fuel the growth of growing offline businesses. 

Razorpay ePOS for businesses and beyond

Our aim with this payment app is to provide a real alternative to cash and deliver a hassle-free user experience without compromising on user data. Whether you are waiting to integrate a payment gateway or looking out for an alternative to door-to-door payment collection, ePOS is the solution for all of it. 

With this app, all growing businesses across sectors can create payment links within minutes. They can share these links via Facebook, Instagram, Whatsapp, email, SMS and any other social media platform. Your customers can then choose to pay via any mode of their choice, like credit/debit card, netbanking, UPI, wallets and more!

To make it the best experience for you and your customers, we offer no monthly limit, online KYC and a lot more- with zero maintenance charges!  

Use cases of Razorpay ePOS app

Before we dive deep to understand the offerings of Razorpay ePOS app, let’s understand who it is designed for.

Kirana store owners

Let’s start with one of the most prominent use cases. There are approximately 6.65 million kirana stores in India. Until 5 years back, all of these shops used to accept payments in cash. 

Cut to 2020 and almost everyone from a tea-stall owner to a supermarket owner is sticking a couple of QR codes to accept payments. How about collating all the payment modes in one place with one QR code? Or even better, train the cashiers at those stores to share a payment link real-time and accept payments. No POS machines, no QR code and yet the payment is done! 

Delivery based businesses

There are a number of tiffin service providers, bakers etc who provide on-the-go services. You place an order with them over a call or WhatsApp and they send an executive to deliver your items. Often, either the buyer is short of cash or the delivery executive has to spend a lot of time hunting for exact change. 

The ePOS app can be of great use to ease this process. The seller can send a payment link either when the buyer places an order or when a delivery executive departs. The buyer can pay the exact amount instantly, that too with a payment mode of their choice. 

Freelancers

Often when we hear the word ‘freelancer’, we think of the comfort they avail. But that’s not always the reality. Freelancers are often seen waiting for their payments. They are also used to hearing excuses like, ‘Its a bank holiday.’ 

Razorpay’s ePOS app can be a saviour to this struggling group of people since they can send the payment link via any channel with all the details and breakdown of the final amount. In fact, they can also send a payment reminder if needed, bringing in relief from those awkward follow-up calls. 

Homepreneurs & tutors

There has been a rise in home-based businesses in the last few years. There are a lot of people selling decor items, handicrafts, fabrics and so on right from their home. Often, they market those goods via WhatsApp, Instagram and Facebook. However, the only hurdle they face is accepting payments, due to which they also see higher drop-off rates. 

With the Razorpay ePOS app, they can create payment links for all of these products while sharing them with people. A potential buyer can choose to buy and proceed right away. The best part is that these homepreneurs can also manage their business right from the Razorpay dashboard and make better decisions. 

There’s a strong use case for teachers, trainers and therapists, who either provide in-person sessions or online sessions. They can create and send payment links via a platform of their choice and manage their funds in a much better way while avoiding the hassles of the in-cash payments. 

Features of Razorpay ePOS app

One of the most frequently asked questions to us during our launch was: How is this app different from the others? There are two things you can trust Razorpay with closed eyes: security and speed. Here are some of the features of this app:

Accept payments 24*7

Forget the hassle of visiting your bank or customer’s door a number of times to get your own money. Razorpay allows you to accept payments anytime, from anywhere. All you need is an active internet connection and you are set to accept payments directly from any of your social media channels. 

No mandatory business registrations

One of the issues that a lot of freelancers and unregistered businesses face with digital payments platforms is the requirement of a company PAN or documents alike. With Razorpay, it doesn’t matter if you are a private or a public limited company, LLP, kirana store owner, NGO, a contracted freelance service provider, a homepreneur, we have a working solution for you. 

Also, Razorpay offers 100% digital onboarding and KYC experience. All you need to do is, enter some basic details about your business and you are all set to accept digital payments! 

Go cashless

There’s a drastic change in the way people have started buying and paying. Both, the consumption habits and the way of paying have now turned online. And the fact is that this trend is here to stay. Make sure you cater to your audience their way by going cashless! 

Payment Links, the major offering of the Razorpay ePOS app is the easiest substitute for cash-on-delivery and point-of-sale payment methods for your business. The ease of use of this application empowers you to teach every member of your staff: cashier, delivery experts, account manager and so on to send a link within minutes. Not just this, they can also send a reminder in case the payment has not been made. 

100% safe and secure money movement

Razorpay’s security channel and risk detection work 24*7 to detect fraud, prevent hacking and cases like money laundering. Besides, we are also PCI-DSS compliant which makes sure that your money is in the safe hands. 

Accept payment via any social media platform

As mentioned earlier, after you create a payment link, you can choose to copy and paste the link to share it across through any social media channels like WhatsApp, Facebook, Instagram etc. Decrease the drop-off rates and convert potential customers in real-time.

Multiple modes of payment

Razorpay supports over 100+ payment modes including Credit and Debit Cards (Visa, Mastercard, Rupay, AMEX, Diners), Net Banking from top 50+ banks, UPI (Web Collect & UPI Intent), Online Wallets, EMI and NEFT/RTGS payments.

Easy tracking and reporting 

Analyze your earnings from the Razorpay ePOS app on the go & stay on top of your goals. Make better business decisions using insights from the real-time data and reports available on the dashboard. You can also choose to download the reports for your convenience! 

24*7 Support

One of our core aims is to provide our customers with the best-in-class service. Our customer support experts are available any time of the day through email, live-chat interface and call to ensure that you get answers to all your queries instantly. 

In conclusion

If you are a business owner and want to speed things up and keep a track of all the incoming payments even when you are away from your factory, office or shop, download this app right away. Give your business the digital push it deserves with the Razorpay ePOS app.

Download the Razorpay ePOS app.

Also Read

Money Movement Decoded for Online Gaming Companies

payment solutions for online gaming companies neobanking razorpay

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

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

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

The many forms of online gaming

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

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

Freemium games

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

Online real money games

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

Online gaming and digital payments

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

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

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

There are two segments of online real money games. 

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

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

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

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

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

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

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

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

RazorpayX Payouts

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

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

[ Read more: How to Simplify and Automate Payouts ]

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

Again, RazorpayX has a solution.

RazorpayX Payout Links

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

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

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

The verdict – RazorpayX for online gaming

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

Retain, Engage, Scale: Three Reasons to Build a Subscriptions Business

razorpay subscriptions

Here’s what a typical morning looks like for most people. After a few minutes of scrolling through the headlines on your preferred news app, you check how long it will take for your breakfast to be delivered. While you wait, you select your morning playlist on your favourite music app, and just like that, you enter the world of subscription services.

Today, most of our basic requirements are fulfilled by businesses running on the subscription model. Swiggy, Netflix, Amazon, BigBasket Daily, Spotify and most of the other big players are betting big on this model and it’s quite a shift from how we have started paying for just what we want, how we want!

But what has caused these companies to move from their traditional model? Subscriptions help these companies provide their users with the following:

1. An excellent experience to their customers by letting them enjoy the service seamlessly

2. Reduction in the friction of a consumer coming back to go through the checkout journey again

3. Affordability to customers, as they only have to pay for the services on a monthly basis versus a yearly lump sum amount. This, in turn, improves customer retention

Go ahead and check the trends of purchases on your website. Does 80% of your sales come from 20% of your existing customers? If yes, the retention of these customers is critical for your business and the subscriptions model allows you to do just that. 

Let’s deep dive and take a look at why subscriptions can make sense for your business.

What are subscriptions?

Subscriptions are the payments made to businesses in accordance with a predetermined schedule that customers sign up for. These types of payments are processed electronically, usually from a customer’s preferred mode of payment- credit or debit card, bank account, physical mandates and UPI.

Depending on the payment gateway that a business uses, they can give their customers the option to set up recurring payments using different payment modes. 

How did Razorpay subscriptions start in India?

Traditional modes of subscriptions like physical NACH and ECS have been prevalent in India for a number of decades. They have been helpful in allowing customers to invest money, borrow money and insure their assets.

However, with the increase in disposable income and opening up of digital modes of payments by the government of India, digital modes of recurring payments such as cards and e-mandate have become more popular. 

Customers have started trusting the subscription model not just for their financial needs, but for other necessities like groceries, rentals, online educational courses and more as well.

While businesses work hard on encouraging customers to go for the subscription model, a payment gateway plays a big role in helping them convert the customers. This includes:

  1. Clear messaging on the user interface which creates trust in the mind of the customer
  2. Wide number of payment options for the customer to choose from
  3. Easy to follow steps for the customer to reduce drop-offs

A number of gaps in the existing products on the market encouraged us to build something what we today call Razorpay Subscriptions. 

[Also Read The Secret Sauce Behind Running A Successful Subscription Business]

Razorpay Subscriptions

Razorpay subscriptions offer quick and easy integration for businesses. With a single integration, you can go live on all modes of a recurring payment, something that none of our competitors offer.

It is one of the easiest products to use and is designed for businesses of all types. 

It offers multiple modes of setting up recurring payments for customers such as recurring on cards, e-mandates, physical mandates and UPI mandates.

Go live instantly by using subscription links via the Razorpay dashboard or integrate our APIs to give a seamless experience to your customers.

What modes does Razorpay Subscriptions support?

With Razorpay Subscriptions, you can offer a number of payment options for your customers. These include recurring on using credit cards and debit cards. Recurring on bank accounts using e-mandate, physical mandates and UPI mandates.

How Razorpay is disrupting this space

Razorpay is building the future of payments with its robust product suite. Here’s how Razorpay is disrupting this space:

  • Avail industry best success rates on credit cards with Razorpay’s homegrown banking solutions
  • Beat the competitive pricing and get industry-best plans with Razorpay
  • Accept payments from across the globe with utmost ease
  • Our physical NACH product – Razorpay PaperNACH – reduces the traditional TAT of 2 weeks to just 5 days, at the same time cutting down extensively on your operational costs
  • Make the best of open APIs, easy and quick integrations and 100% online processes
  • 24*7 support by our payment experts
  • One-time sign up to avail all of the Razorpay products 
  • One point integration to offer multiple payment options to your customers

Which industries rely on Razorpay subscriptions?

razorpay subscriptions

All of the above-mentioned facts clearly state that the model of recurring payments is here to stay!

Advantages of Razorpay Subscriptions

Customer retention

It is not wrong to mark this as one of the most important benefits of recurring payments. The core idea of recurring payments is to accomplish the objective of the customer and keep providing value to them over time. It helps a business build a substantial level of trust and a higher number of your customers turn into what businesses call “sticky” customers.

Ability to scale

Often, customers’ needs change dramatically, depending on a number of factors like budgets, available resources, options etc. Recurring payments offers your business a way to adapt to changing needs and keep growing at the pace you want.

Stronger relationships

The recurring payments model is not about finding one customer and moving onto the next one. As a service provider, it allows you to build a relationship with your customers in a way that they value you as much as you value them.

Does Razorpay Subscriptions sound like a plan for your business? With all the changes in the ways customers behave, it has become important to bring about a change in the way you do business as well. Check out Razorpay Subscriptions and take your business a step ahead.

 

Healthifying Your Fitness and Weight Loss Goals

HealthifyMe

From being primarily a services company that provided access to nutritionists and fitness trainers anywhere-anytime, HealthifyMe has evolved into a pure-play product company.

With over 10 million users and a consistent 4.6-star rating, India’s largest and most-loved health and wellness app, HealthifyMe has continued to grow beyond the Indian subcontinent.

HealthifyMe needed a payment solution that made two things happen – seamless user experience and the ability to experiment fast. As a universal app, HealthifyMe has already proven to be successful in Singapore and Malaysia.

As we spread our wings across more countries, we are sure that Razorpay is going to be an integral part of that journey as well.

How HealthifyMe uses Razorpay

Razorpay enabled a flawless integration, and the growth engine of HealthifyMe now extensively uses Razorpay as the only gateway. The web vertical is a significant space for HealthifyMe. 

We went back to the web because we have a lot of users who we cannot reach through our regular channels of marketing. Razorpay powers 100 percent of our web payments.

HealthiFyme

Razorpay as the payment gateway powers purchases directly from HealthifyMe’s Facebook and Google ads. The company has noticed a massive increase in conversion rates and has been able to iterate and experiment to learn and fail quickly. 

We are hoping that Razorpay will power over 30% of our revenue by March, next year. We are sure that this is one partnership that will last for a long time to come.

Q&A with Anjaan Bhojarajan, VP, Growth and Head of Product, HealthifyMe

HealthifyMe is one of the largest and most loved health and wellness apps in India. Could you tell us more about your product and business model? 

In terms of product lines, HealthifyMe is a premium app. The business model can be compared with Tinder and Linkedin, who have done well in the freemium model business. 

If you go premium, you get access to fitness trainers, workout plans and many more. This is our core business model. We don’t run Ads in our app.

Generally, people work with a nutrition and fitness trainer for 6-12 months. The business has grown, we have built credibility around it over the last five years, probably the only app in India or around the world that has scaled to this level. 

The free version of our app has calorie counting. With our workout-tracking, you can check your calorie burns, intake, weight and water consumption, which makes sure that you are hydrated enough. 

Tell us about your AI nutritionist Ria. Do premium subscribers get access to this classic coach model? 

Ria is our knowledgeable AI nutritionist and has been in existence for the last three years. As part of the coaching plan, Ria helps us with real-time analysis. The feedback from Ria keeps our premium subscribers on track and makes sure they are eating healthy and stay fit. 

Meanwhile, Ria learned from the behaviours of trainers and became powerful enough to launch its plans. Courtesy of Ria, our Smart Plan is an AI-powered offering. 

We have 10 million users across the world and about 1 million from South East Asia because we went local in Singapore and Malaysia last year. 

Why did you choose Razorpay as your payment service provider?

Razorpay has helped us build a whole new business line. The payment service provider powers 100 percent of our web payments. 

Razorpay has a great checkout mechanism, helped us educate users about our plans, and the new conversion ratio has been through the roof after the integration. 

Integration was flawless. You have the best inline checkout page. Business point of view Razorpay has done wonders for us. 

Power your payments with Razorpay Payment Gateway today.

Why Are Payment Gateway Settlements Not Instant?

Every business or enterprise expects its customer’s transaction to reflect in their account directly. But even today, in the era of digital-first platforms, these settlements are not instant. To give you more clarity on the payment gateway settlement process, let us show you what happens behind the scenes. 

Settlement process: A business’s perspective

Settlements is a process through which a business receives a certain amount paid by their end-users via online transactions for a particular product or service.

In this case, an individual pays via a payment gateway on the business’s website or app, and that amount is transferred to the business’s account by the payment gateway. 

Here’s what a typical settlement process looks like:

Step 1: The cardholder inputs their bank account or card details on the Razorpay checkout form to pay for a product or service 

Payment Checkout

Step 2: After successful authentication via OTP or 3D secure, the money is debited from the cardholder’s account, and the individual receives a confirmation notification for the same

Payment Checkout

Step 3: The transaction amount is routed via the card networks to Razorpay’s acquiring banking partners

Payment Checkout

Step 4: Once Razorpay receives the amount, it is settled to the seller’s bank account after the deduction of a specific fee

Payment Checkout

Why don’t payment gateways settle instantly? 

Payment settlements may look like a very straight-forward process, but they are not. The primary reason why settlements are not instant is that money movement at every step of the process is not immediate.

Also, the underlying complexities of reconciliation is an additional challenge that stands in the way of instant settlements. 

Well, reconciling transactions can be a nightmare for accountants, and here’s why:  

  • Every bank has or offers a different settlement cycle. Hence, the time-frame for the acquirers can vary. For example, Bank A may usually settle within a day, whereas Bank B may take two days to pay. Keeping track of these timelines and consolidating it all in a single sheet does take time
  • Bringing along a whole new level of complexity are refunds and chargebacks. In case of refunds, a customer expects them immediately. But refunding the money without reconciliation puts the business at risk
  • The business owner can end up paying back an amount that was never received. Also, it would be a disaster when the bank statements and reconciliation documents would fail to show a clear picture

When does Razorpay settle a business?

For every business on the Razorpay Payment Gateway, we define a settlement schedule–the time from the date of payment capture to when the business should receive the due amount.

As per the schedule established for the business, the settlement is created only for captured payments and refunds requested for the captured payments. 

Earlier, the complete process used to consume T+3 business days for domestic transactions (T being the date of payment capture).

Today we are glad to announce that customers can unlock faster settlements at no additional costs. Yes, the settlement cycle has been upgraded from T+3 to T+2 by default. 

Note: Razorpay doesn’t schedule settlements on weekends.

Here’s the Razorpay T+2 settlement chart:

Razorpay Settlements

Note: Maximum settlement time – four days

To settle this

Settlements usually depend on the multiple intermediary hops. In the case of cards, the acquiring bank, card network and issuing bank are involved.

In case of a payment method like UPI, along with the acquiring and issuing bank, NPCI also plays a role. This is why the amount of time taken to process the settlements also depends on the mode of payment used to make the transaction. 

The entire money movement process in online payments happens via nodal accounts. This means that payment gateways cannot earn interest from the money they hold or move on behalf of their customers.

At Razorpay, we are genuinely devoted to providing the best payment experience, not just for the businesses that work with us, but also for their end customers.

We truly believe that if online payments have to replace cash, then it has to provide the same ease of use, which is what we strive to achieve. 

To make settlements even smoother, and to help businesses manage their working capital requirements efficiently, we also provide 24x7x365 On-Demand Instant Settlements. Read about that here.

Click here to accept payments with Razorpay Payment Gateway.

2020 – The Year for Neobanking in India

RazorpayX - neobanking platform

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

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

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

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

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

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

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

The expansion of neobanking platforms

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

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

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

[ Read more: Everything You Should Know About Neobanks ]

Neobanking in India 

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

Regulatory framework for neobanks in India

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

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

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

Business banking with neobanking platforms

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

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

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

With RazorpayX, businesses can

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

The RazorpayX story

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

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

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

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

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

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

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

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

The future of banking with RazorpayX

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

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

The year for neobanking

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

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

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

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