Razorpay has introduced Instant Refunds for UPI transactions on its POS platform. Merchants can now offer a smoother in-store payment experience with refunds processed within 2 minutes, enhancing checkout speed.
In 2023, India witnessed a 60 per cent growth in UPI transactions, surpassing 100 billion. Despite a 300 million user base, businesses, especially in Point of Sale transactions, encountered delays affecting customer experience and operations. The newly introduced solution aims to improve checkout speed and overall customer satisfaction.
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 per cent of UPI transactions see friction due to pending status and our merchants lose their business in 30-40 per cent 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.”
A survey conducted by NeoGrowth in 2023 revealed that 53 per cent of MSME retailers identified internet issues and failed transactions as major demotivators for utilising UPI transactions in their businesses.
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, the company added in a statement.
Razorpay POS offers Android Smart POS, Android Smart Mini POS, and soundbox. The company said that it achieved a 60 per cent growth in FY’23, contributing to nearly 10 per cent of the company's overall revenue.
founded in 2014, the company provides technology payment solutions to over 10 million businesses. Founded by alumni of IIT Roorkee, Shashank Kumar, and Harshil Mathur, Razorpay is the second Indian company to be a part of Silicon Valley’s largest tech accelerator, Y Combinator.
Investors such as Lone Pine Capital, Alkeon Capital, TCV, GIC, Tiger Global, Sequoia Capital India, Ribbit Capital, Matrix Partners, Salesforce Ventures, Y Combinator, and MasterCard have invested a total of $741.5 million through Series A to F in funding. A few angel investors have also invested in the company's mission to simplify payments and business banking and redefine how finance works in India.