Razorpay, India’s leading omnichannel payments and banking platform for businesses, announced the debut of Instant Refunds on UPI transactions via Razorpay POS. This industry-first solution will enable retailers to give their consumers a more smooth in-store payment experience by issuing rapid refunds for failed UPI transactions within 2 minutes, resulting in faster checkouts.
UPI payments have fast become the standard for digital payment acceptance in India. According to the National Payments Corporation of India (NPCI), UPI platform transactions exceeded 100 billion in 2023, reaching over 118 billion, a remarkable 60% increase from the previous year’s 74 billion. With a user base of over 300 million, end users have clearly adopted this technology in just six years. Businesses, on the other hand, are actively looking for answers to concerns, particularly those involving delayed transactions completed through POS systems.
These delays have a negative impact on the consumer experience, potentially costing retailers money. When transactions are delayed and funds are debited from the consumer’s account but not received by the merchant, clients are hesitant to retry the payment or choose an alternate method, and they frequently abandon the purchase. This not only disrupts the user experience, generating confusion and annoyance, but it also increases operating costs for merchants, affecting their whole business.
A survey done by NeoGrowth in 2023 indicated that 53% of MSME shopkeepers viewed internet difficulties and failed transactions as major demotivators for implementing UPI transactions in their enterprises. In this scenario, swift issue response is both a strategic differentiator and a necessity. Razorpay, a pioneering force in the financial industry, has used cutting-edge technology to overcome this issue, offering fast refunds on UPI payments through Razorpay POS. Using Razorpay POS device’s completely automated system, the refund process now takes no more than 2 minutes, as opposed to the industry typical of 5 to 6 business days. The process entails a quick effort within 3 seconds, which concludes if successful. In the event of a failure, the algorithm repeatedly attempts three times, with each try spaced 5 seconds apart, saving a merchant’s manual efforts completely.
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% of UPI transactions see friction due to pending status and our merchants lose their business in 30-40% 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.”
Also Read | Razorpay acquires BillMe, a digital invoicing startup to strengthen its omnichannel play
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