The company claims this to be an 'industry-first solution,' aiming to expedite the refund process for failed UPI transactions. The conventional industry standard for such refunds is reported to range from 5 to 6 business days.
The new functionality initiates a refund attempt within 3 seconds of a failed UPI transaction. In the event of a failure, Razorpay's POS devices automatically make three transaction attempts, spaced 5 seconds apart. According to the company, this technology addresses challenges faced by micro, small, and medium-sized enterprise (MSME) retailers, as identified in a survey from the previous year, which highlighted internet issues and failed transactions as significant obstacles in using UPI for business transactions.
Officials from Razorpay POS cited by inc42.com stated that their data indicates 5-15% of UPI transactions experience friction due to pending status, leading to a potential loss of business for merchants. They also emphasised that the new offering aligns with Razorpay's goal of simplifying money movement. The startup's POS offerings include Android Smart POS, Android Smart Mini POS, and soundbox.
The same source reveals that, in December 2023, Razorpay reported a 60% growth in its POS business for the financial year 2022-23 following the acquisition of Ezetap. The acquisition, completed in 2022 with a valuation of approximately USD 100 to USD 120 million, contributed to Razorpay's portfolio, which includes payment gateway, SME payroll management, banking, lending, payments, and insurance services.
Founded in 2014, Razorpay has secured over USD 700 million in funding at the time of writing, with investors such as GIC, Tiger Global, Peak XV, Ribbit Capital, and Matrix Partners. In December 2023, Razorpay obtained final approval from the Reserve Bank of India (RBI) to operate as a payment aggregator, facilitating the onboarding of new customers.
In October 2023, Razorpay expanded to Malaysia by obtaining a licence to acquire merchants through Curlec, the new non-bank member of PayNet. Following this announcement, Curlec by Razorpay was made a non-bank member of the national payments network and infrastructure, Payment Network Malaysia Sdn Bhd (PayNet).
This membership allowed Curlec to drive nationwide adoption of real-time payments through DuitNow, a Malaysian payment solution that was designed to enable real-time payments between locally registered bank accounts.
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