Razorpay’s Mandate HQ is an API-based plug-n-play solution that reduces the go-live time for any card issuing bank that wishes to enable recurring payments for its customers. MandateHQ will also enable businesses, especially subscription-based businesses, to get access to a wider customer base, who use debit cards, as recurring payments were mostly supported via credit cards previously. Razorpay’s MandateHQ solution can be fully integrated with any bank within 7 days, as opposed to other solutions which normally take a few weeks.
In addition to its association with Mastercard, Razorpay has also partnered with the country’s three banks and is in talks with over 20 banks to help integrate this technology into their existing payment infrastructure in the next few weeks.
To further the adoption of digital payments in a safe and secure manner, the Reserve Bank of India (RBI) has issued a framework for processing of e-mandates on recurring online transactions. RBI has made AFA (Additional Factor of Authentication) mandatory for all recurring transactions below USD 67 on debit cards, credit cards, even UPI and other Prepaid Payment Instruments (PPIs). All stakeholders are required to ensure full compliance with the framework by September 30, 2021.
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