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Online Payment Gateway Razorpay Unveils Series Of New Products To Impact 100 Mn Customers By 2020

Online Payment Gateway Razorpay Unveils Series Of New Products To Impact 100 Mn Customers By 2020

The Four New Products Will Equip Razorpay 2.0 To Facilitate Automated Digital Payments

The year 2017 has certainly been going well for Bengaluru-based online payment gateway Razorpay. After making it to Nasscom’s League ten companies and a sassy office space, the company has unveiled Razorpay 2.0. The online payment gateway has launched four new products. The list includes Razorpay Route, Razorpay Smart Collect, Razorpay Subscriptions and Invoices, all aiming to facilitate automated digital transactions to its clients.

Founded in 2013 by IIT Roorkee alumni Shashank Kumar and Harshil Mathur, Razorpay claims to be India’s first converged payment solution. With the new list of products, the fintech startup is expecting to increase its merchant count from the current 40,000 to 90,000 by end of next fiscal year.

As shared in an official statement by the company, the newly launched products will help the company penetrate India’s under-served business community and increase its market share in cash-rich traditional sectors such as education, government, insurance and ecommerce companies.

Commenting on the launch, Harshil Mathur, CEO and Co-founder, stated, “We now manage the what, when, where and how of payments, right from the moment a payment is initiated to the point it is fully reconciled and disbursed to the final destination.”

Razorpay To Razorpay 2.0: The USP, Milestones Achieved And More

India’s digital/online payment landscape has been poised to touch $500 Bn by 2020. However, when it comes to doing traditional banking functions online, key issues have been identified in processes such as digital transactions, managing cash flows, disbursement of money, automating NEFT and bank wires and collection of scheduled payments among others. Razorpay, with its one-stop payment solution, aims to address these issues.

Shashank Kumar, CTO and Co-Founder, said, “We are looking to solve all pain points related to the flow of money for businesses in India. We aim to marry intelligent technology solutions with the payment needs of businesses to deliver a sound, cohesive and comprehensive payments experience.”

The online payment gateway was also picked up by Y Combinator back in 2015. Since then, the online payment gateway has raised a total of $11.6 Mn from two funding rounds in 2015 and from another undisclosed round closed last year. In a short span, the company has successfully made to the portfolio lists of esteemed investing companies, MasterCard, Tiger Global, Matrix Partners. Being the first Indian fintech to provide converged digital payment solutions, Razorpay 2.0 expects more than 10x growth in volume & revenue by next fiscal year and predicts the newly launched product suite to contribute 30% of its revenue. As per its claims, the company has clocked in a healthy growth rate of 40-50% month-on-month and aims at impacting lives of 100 Mn end consumers by 2020.

The Ongoing Online Payment Fad In Indian Landscape

Despite all the criticism around demonetisation, the move was widely seen as a kickstart to Cashless India campaign by India Inc. There’s a storm coming in digital payment space. The cash-friendly market, post sudden disappearance of 86% of cash, was forced to adopt digital payment way, making startups like Paytm and Razorpay 10x profits in short span. Big companies, Google, HDFC, ICICI, Amazon and more have also launched their own e-wallets.

While the government of India launched UPI-based mobile payment app Bharat Interface for Money (BHIM), WhatsApp is reportedly going to launch peer-to-peer payment gateway, similar to what WeChat has done in China. As reported by Inc42, in the last year, several startups launched their mobile apps based on UPI such as Trupay, Razorpay and Flipkart-owned wallet PhonePe. This week Google also rolled out its mobile payments app Tez.

According to a case study by KPMG in India and Google on India’s digital payment market, the current 325 Mn Internet user base is estimated to be double by 2020. The Indian Fintech segment is expected to touch $2.4 Bn in 2020. With its offering of one-stop solution for digital payment, Razorpay is expected t an gain early lead in the space.

Update 1: 23rd September, 2 PM
The number of consumers the company looks to reach has been updated from 25 Mn to 100 Mn.