According to Razorpay's data, 5-15% of UPI transactions see friction due to pending status and its merchants lose their business in 30-40% of the cases wherein the customer is not comfortable making a double payment via UPI or paying through any other method. Using Razorpay POS device's fully automated system, the refund process now takes a maximum of 2 minutes compared to the industry standard of 5 to 6 business days
FinTech BizNews Service
Mumbai, January 22, 2024: A front-runner in driving constant innovations in UPI since 2017, Razorpay, India’s Leading Omnichannel Payments and Banking Platform for Businesses, today announced the launch of Instant Refunds on UPI transactions by Razorpay POS. This industry-first solution will allow merchants to provide a more seamless in-store payment experience to their customers by providing instant refunds for failed UPI transactions within 2 minutes, resulting in faster checkouts.
UPI payments have rapidly emerged as the norm for digital payment acceptance in India. In 2023, UPI platform transactions exceeded the 100 Billion mark, reaching around 118 Billion, marking a remarkable 60% growth from the previous year's 74 billion, as reported by the National Payments Corporation of India (NPCI). With a user base exceeding 300 million, the widespread adoption of this technology in just six years is evident among end customers. However, businesses are actively seeking solutions to address issues, particularly concerning delayed transactions made via POS devices. These delays result in a negative customer experience, leading to potential losses for merchants. When transactions are delayed, and funds are debited from the consumer's account but not received by the merchant, customers hesitate to retry the payment or opt for an alternative method, often abandoning the purchase. This not only hampers the consumer experience, causing confusion and frustration but also raises operational costs for merchants, impacting their overall business.
A survey conducted by NeoGrowth in 2023 revealed that 53% of MSME retailers identified internet issues and failed transactions as major demotivators for utilizing UPI transactions in their businesses. In this context, quick issue resolution becomes a key differentiator and the need of the hour. Razorpay, being a trailblazing force in the fintech industry has leveraged cutting-edge technology to address this challenge with instant refunds on UPI payments by Razorpay POS. Using Razorpay POS device’s fully automated system, the refund process now takes a maximum of 2 minutes compared to the industry standard of 5 to 6 business days. The process involves a swift attempt within 3 seconds, concluding if successful. In case of failure, the system persistently attempts thrice, each attempt spaced 5 seconds apart, sparing a merchant’s manual efforts altogether.
Commenting on the industry-first solution, Byas Nambisan, CEO, Razorpay POS, said, “With the increasing preference towards providing omnichannel payment experiences, businesses must have access to the right solution that can make this happen, end-to-end. According to our data, 5-15% of UPI transactions see friction due to pending status and our merchants lose their business in 30-40% of the cases wherein the customer is not comfortable making a double payment via UPI or paying through any other method. It was therefore critical for us to nip this in the bud by empowering our merchants to make these instant refunds happen, enhancing customer satisfaction, trust, and faster checkouts. This new offering reiterates our goal of simplifying money movement and demonstrates our innovation-first mindset as we continue to work towards shaping the future of payments.”
Razorpay POS has revolutionised the in-store payments landscape, opening a world of new possibilities for businesses of all sizes. In December 2023, Razorpay POS announced it achieved a remarkable 60% growth in FY’23, contributing to nearly 10% of Razorpay’s overall revenue. The platform’s holistic expansion has made in-store payments seamless and hassle-free, adapting to an evolving business environment where a hybrid approach is essential for engaging with customers.
