SUMMARY
Razorpay will launch a payment reconciliation service for ONDC’s network participants including buyers, sellers, and logistic partners
Razorpay said that it will facilitate transacting on ONDC by timely routing settlement information for a given transaction and assisting network participants with settling funds
The development comes a day after the Centre asked ecommerce firms to join the ONDC with their primary platforms and not with subsidiary apps
Fintech unicorn Razorpay has boarded the Centre’s ONDC (Open Network for Digital Commerce) platform to streamline payment processes.
After joining the network, Razorpay will launch a payment reconciliation service for ONDC’s network participants (NPs) including buyers, sellers, and logistic partners, to streamline the payment processes on the platform. Razorpay said it will also offer an integrated view of all transactions to network participants.
It further said that it will help network partners in transacting on ONDC by timely routing settlement information for a given transaction and also, assisting them with settling funds. It will validate transactions and maintain audit logs to support documentation, thus, informing any dispute or discrepancy that may arise.
“We are thrilled to welcome Razorpay to ONDC. This is a significant step towards our goal of enabling seamless and secure digital commerce for everyone. With this addition, we continue to drive transparency and inclusion in the digital commerce space and we look forward to working with Razorpay towards achieving this vision,” said Thampy Koshy, CEO of ONDC.
With ONDC’s open network approach, buyers and sellers do not need to be on the same platform to perform a business transaction. The platform also enables small and medium-sized enterprises to access a large buyer universe.
The development comes a day after the Centre asked ecommerce firms to join the ONDC with their websites and not with any network-specific app.
In March, the ONDC entered the mobility segment by onboarding auto booking app ‘Namma Yatri’ on the network.
Razorpay, founded by Shashank Kumar and Harshil Mathur in 2014, offers a multitude of payment solutions including SME payroll management, banking, payments, lending, and insurance.
“I believe the possibilities the ONDC network provides are endless and I’m confident the Payment Reconciliation Service will only further strengthen the development of ONDC’s tech infrastructure and help the ecosystem grow seamlessly from a payments and compliance point of view,” said, Shashank Kumar, managing director and cofounder of Razorpay.
In April, Razorpay formed an advisory board with former RBI deputy governor N.S. Vishwanathan as the chairperson, to expand offerings and ensure better corporate governance as well as compliance in India’s fintech ecosystem.
The advisory comprises members including Arijit Basu, chairman of HDB Financial Services and former MD of State Bank of India; Aruna Sundararajan, IAS (Retired) and former secretary of Ministries of Steel, IT & Telecom, GoI; and K. P. Krishnan, IAS (Retired) and former secretary of Ministry of Skill Development and Entrepreneurship.
Razorpay claims to be offering payment and business banking solutions to more than 10 Mn businesses.
In the financial year 2021-22, its standalone net profit grew by 20% to INR 7.3 Cr, from INR 6.1 Cr in FY21, on the back of strong growth in the business. Its revenue from operations climbed up by 76% in FY22 to INR 1,481 Cr from INR 841.2 Cr in the previous fiscal year.
