Razorpay- The FinTech success

What is Razorpay

It is a one stop destination for all your payment needs. Razorpay is the only payments solution in India which allows businesses to accept process & disburse payments with its product suite. It gives you access to all payment modes. Including credit card, debit card, netbanking, UPI and popular wallets including JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money and PayZapp. Manage your marketplace, automate NEFT/RTGS/IMPS bank transfers, collect recurring payments, share invoices with customers – all from a single platform.

Razorpay Logo

Initial Thought

Harshil & Shashank are IIT Roorkie alumni of 2013 batch. Bored of their well paying jobs and having free time they decided to do some side projects. For one of those side projects they had to accept online payments. They talked to all the large players. But they figured out that nobody catered to startups at that time. Reason behind is most of the online payments at that time were dominated by large enterprises.

Razorpay Founders

Gap in industry

Most of the products were build up for large enterprises. To get on board with these companies was tough job and a lengthy process. They asked for huge paperwork, proper office setup etc and the on-boarding time was at least a month. Even if one was able to get onboard the technology stack was very outdated. All the then existing companies were catering to large enterprises because they controlled majority of the market.

Idea behind RazorPay

It was early 2014 both of the founders had to face this difficulty. At the same time so many startups were budding. So they thought why not build something for these startups and they will also be able to grow with them.

Reason behind success

There are many reasons that contributed to the success of razor pay. Some of them are Reducing the fees/percentage and making sure having the lowest in the market. Very high retention rates because of maintaining the quality of services throughout. Being very first to introduce UPI & bharat pay support in a B2B company also being a only dedicated B2B payment company. Best in the industry support available via email, phone and chat based support to help you in your every step. Bagging some of the large merchants like Zomato, Indigo Airlines, Airtel , OYO and many more. More than these giving very less time for approval/get onboard was the real Key.

Some of Razorpay Partners

Expansion

Razorpay has expanded its business from payment & gateway pages to Lending, Risk&Fraud and Banking buisness with the Razorpay Capital, Thirdwatch & Razorpay X. Seeking the Demands from the market and Converting them into oppertunities is What have been the Objective of Razorpay from beginning. We will explain These three.

Razorpay Capital

Usually the time of business owner is wasted in getting bank approvals for loans and often banks don’t provide short term small loans. We have to pledge something as security. Razorpay on the other hand gives you loans base on your transactions on razor pay. It is a great thing for entrepreneurs who are trying to raise working capital. Another really cool feature they offer is on demand instant settlement which offers getting your payments settled within an hour at any time even on holidays. That is really a game changer.

It has another very useful feature called as Flash Credit its like Banking limits customers have in Banks holding Current Account. It help customers manage payment and even withdraw cash(up to credit limit) if needed and return later. Plus pay interest on amount withdraw for the duration of withdrawal. However this feature is currently in its beta stage. Company also offers Corporate Credit card customized according to the company. It has a 50 day interest free policy. Available only for Razorpay customers. It has a dynamic credit limit which grows with the customer’s Business. Offers Tracking of spending and lets you set a limit. This feature has a long waiting list.

RazorpayX Corporate Credit card

Razorpay X

RazorpayX is Business Banking built for disruptors. Bring effectiveness, efficiency and excellence to all your financial processes with the best tech Razorpay has to offer, coupled with everything you could ask of your bank. RazorpayX Current Accounts come with all standard banking features like cheque book, debit card, and account statements plus great tech capabilities like API Banking, Approvals Workflow, and Insightful Reports.

RazorpayX lets you manage cash flows with ease weather it be accepting payment from your customers or your employ payout. Offering 24*7 payouts via NEFT/RTGS/IMPS/UPI. With very nominal charges starting from.

  • ₹4 for IMPS/UPI below Rs.1000
  • ₹6 for IMPS/UPI transfers between ₹1000 – ₹25,000
  • ₹9 for IMPS/UPI transfer above ₹25,000
  • ₹5 for all NEFT/RTGS transfers
  • All above prices are for per transaction and GST extra

RazorpayX also offer penny testing which lets you validate bank account details by performing sample transactions, before making large transfers. Get your payment links to accept payments worldwide. Links are easy to generate and process instant payouts. Razorpay smart payroll software can be integrated with your RazorpayX account in which you can schedule any payments it help you pay salaries and reimbursements with ease.

Thirdwatch

IT is a software which was developed to Reduce RTO losses and fight COD fraud with AI. Detect fraud orders, risky orders, impulse purchases, non-deliverable addresses and save up to 30% of your business costs. It uses Artificial intelligence and machine learning to do so. Machine learning helps to capture fraud across a wide database with advance ML engine.

Thirdwatch Logo

Artificial intelligence Mini models, global signals and an ensemble of AI algorithms to accurately profile fraud. It uses real time systems i.e. Robust systems to immediately flag risky transactions as and when they happen. this solves the major problems of majority drop-shippers that they face with COD orders.Thirdwatch lets you review non deliverable address by identifying incorrect of incomplete address entered accidentally.

Managing frauds

Detects fraud orders by flagging fake orders by analyzing multiple parameters like junk details & historical pattern. Identify impulse purchases Detect irregular purchase patterns to signal a high probability of return or cancellation. Thirdwatch is available as a plugin on Shopify and WooCommerce. Plugins make the integration process very easy that it takes very less time to setup.

It helps in preventing many frauds like fraud losses Losses due to fraud spread multiple dimensions forward and reverse logistics cost and merchandise money getting stuck for round trip time plus merchandise getting obsolete in case of RTO fraud. Cost of item loss in case of duplicate item return fraud and chargeback fighting cost in case of payment fraud.

keepin you safe!

It prevents lost sales due on inability to fight fraud. Companies sometimes use very broad rules to block whole genre of customers. Like blocking use of international credit cards and blocking whole states hence losing genuine users and potential sales.

Minimizing the fraud review cost. This is usually not calculated but fighting with fraud can consume huge bandwidth of top management team and takes their attention away from other strategic matters. Internal review team cost is another cost item of fraud which should be taken into account while calculating fraud losses.

Razorpay is a one stop destination for any entrepreneur , startup, B2B company or even for B2C. Startups are the major benefited from this platform because it cater most of the startup needs. Either you are into drop-shipping or freelancing it has all your payment solutions.

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