Razorpay Eyes $50 Billion Digital Payment Volume By End Of 2021
Fintech major Razorpay on Friday said it has seen a strong growth in business over the past few months and aims to clock $50 billion in total payment volume by the end of 2021.
The company also announced a slew of solutions, including offering a multilingual checkout page that will help non-English speaking customers to complete transactions in vernacular languages.
"We are going through one of the biggest digital transformations in the history of fintech and the adoption has been accelerated further amid the pandemic," Razorpay Chief Executive and Co-Founder Harshil Mathur told PTI.
He added that the number of online sellers coming on board has been growing but in the past few months, many offline retailers have gone digital and adopted our solutions to complete transactions.
Currently, the company processes payments worth $30 billion, and this number is set to touch $50 billion in the next one year, he said.
Mathur said the company has been working on introducing solutions that can help businesses, especially small and medium businesses.
These solutions bring in agility and flexibility in business's financial operations and cater to their payments and business banking needs, he added.
The first solutions will help deliver a localised payment experience to customers with a multilingual checkout page for completing financial transactions.
Mathur said India already has nearly 700 million internet users, of which more than 300 million prefer to interact in local languages.
The new solution will help thousands of non-English speaking merchants and customers from tier-III and -IV cities view the checkout page in languages including Hindi, Kannada, Tamil, Telugu, Marathi, Gujarati, and Bengali, he added.
Razorpay is also introducing a 'trust badge' that will help customers know that the merchant is genuine and credible.
"Due to lack of trust, new merchants usually see 30% higher cart abandonments on the checkout page as compared to established merchants; and over 90% of overall orders are typically COD, which in turn hurts the merchant's profits," Mathur said.
The Razorpay Trusted Badge helps customers know that the business is credible and trustworthy, and can have a drastic impact on customer's payment experience, in turn, leading to higher conversions for the merchant, he added.
This badge will be displayed on the Razorpay Checkout and will be available to select businesses who are deemed trustworthy by Razorpay and its customers.
RazorpayX (its neo-banking platform) has partnered with Plum and ICICI Lombard and will offer health insurance to companies with teams as small as two employees. Mathur said businesses using Razorpay Payroll can now avail benefits and affordable premiums under this offering.
To foster innovation, Razorpay has also set up a business-to-business app store for the financial technology industry.
"This will empower the developer community to build solutions beyond fintech. With Razorpay's network of 5 million SMBs, developers can create flexible solutions and target a million businesses through Razorpay's developer-friendly APIs," Mathur said.
He added that the company has also established a Rs 1-crore fund to give as grants to developers encouraging them to build unique solutions that will further strengthen the fintech infrastructure.
The products launched on Friday will further empower it to grow alongside small and medium businesses, he said.
In the past six months, Razorpay has witnessed a 40-45% month-on-month growth.
In October, the company announced raising $100 million (about Rs 731 crore) in a funding round co-led by Singapore's sovereign wealth fund GIC and Sequoia Capital India. With the infusion, the company joined the coveted unicorn club of Indian startups with a valuation of over $1 billion.
Currently, Razorpay powers payments for over 5 million businesses, including Airtel, BookMyShow, Ola, Zomato, Swiggy, Cred, and ICICI Prudential, and aims to reach 10 million businesses by 2021.
A key area of growth for Razorpay is business banking. Through its neo-banking arm RazorpayX, the company has been disbursing working capital of Rs 250 crore per month and aims to increase it to Rs 500 crore a month by 2021.