Expected to benefit over 50,000 businesses across E-commerce, Gaming and Rental Furniture Sectors amongst others, payouts to customers can be made through UPI, IMPS, NEFT & RTGS
COVID-19 is writing a new world order and gaming businesses are reaping significant benefits as demand for online games increases by 30% during the last three months of lockdown. With increased demand, businesses are struggling with their manual financial processes to get instant access to customer’s bank account details to transfer rewards and winnings immediately. A delay in processing payout winnings/prize money ruins the gaming experience for the user and impacts brand trust. E-commerce companies face a similar struggle for CoD (Cash on Delivery) refunds and rental furniture companies wrestle with handling returns for security deposits to customers as well as insurance companies settling claims of customers.
Designed to automate and process instant payouts to customers and vendors without bank account details, RazorpayX, the neobanking arm of the fintech giant Razorpay, announced the launch of Payout Links for businesses in Gaming, E-commerce, Rental and other sectors.
Traditionally, businesses have been following manual processes and undertaking multiple follow-ups to collect customer’s bank account details to initiate payment to the customer. Lack of an automated process has cost customers a waiting period of 5-7 days after being contacted, and impacted businesses with a 40% increase in operational cost.
RazorpayX Payout Links help businesses reduce this friction by automating and centralizing the process with minimal human intervention, empowering businesses to process payouts instantly in under 5 minutes via UPI, IMPS and within 1 hour via NEFT, RTGS to customers. Rental & E-commerce businesses stand to gain from this offering, as it helps them eliminate time and effort required to process payouts by 95%, without any human intervention required to collect bank account details; and further reduce 30% of customer support tickets arising from such delays.
The link shared via sms and email requests customers to fill in their bank details or UPI handles. The payout to the customer is processed instantly once they submit the details. If the customer shares invalid account details or UPI handles, the link notifies the customer to re-enter details, and automates processing the payment without any additional overhead or delay for the business. While RazorpayX Payout Links can be implemented through an API integration, businesses can also generate and share Payout Links via the RazorpayX platform without any integration.
Commenting on the launch, Shashank Kumar CTO & Co-founder, Razorpay said, “Businesses typically do not have their customer’s bank account details to initiate refunds and hence they need to set up manual processes to collect this information. With increased demand in a COVID-era, businesses don’t have the time for tedious manual processes resulting in errors and delays. Lack of an automated process also leads to higher lead time and multiple customer follow-ups resulting in a subpar customer experience. We hope to solve these worries in a major way with the launch of RazorpayX Payout Links. This product will help ecommerce businesses reduce the time taken to make payouts such as CoD refunds by 95%. We believe with a simple solution as this, businesses will eliminate upto 50% of effort and coordination required to make these payouts.”
He added, “In the last two months, demand for business banking apps and solutions from RazorpayX, our neobanking platform, has increased by 3x. We will continue to help businesses with new solutions to make business banking simple, flexible and efficient for SMEs & Startups who are starving from an intelligent tech infrastructure.”
Varun Krishnakumar, Head of Products, Furlenco said, “With RazorpayX Payout Links, Furlenco has been able to automate and streamline our payouts and refunds process. The product is extremely user friendly and intuitive and is among the best in its class. Integration was super easy and the pre and post integration support from Razorpay has been awesome.”
RazorpayX foresees an increased demand for Payout Links, especially in this Covid-era and expects over 10,000 businesses to integrate the product in the next 4 months.
RazorpayX’s growth has followed an upward trajectory, particularly in the last few months. The neobank has grown by 20x in the last 6 months and hit a TPV (Total Payment Volume) of USD 3bn annualized. Banking solutions of RazorpayX have enabled businesses to reduce over 30% in time and costs. Contributing to over 15% of the company’s revenue, RazorpayX is expected to grow to 30% by 2021.
