How Razorpay Became the Best Payment Gateway in India | 6 Strategies
Introduction
We’re well beyond the days when cash move was an intricate and dreary cycle. The technique would now be able to be embraced in a straightforward swipe of our fingers, inferable from the spread of stages that have been endeavoring to set up easy and safe online cash move benefits.
At the point when we consider such stages, one of the main names that enter our thoughts is that of Razorpay, an installment passage stage that offers a free from any harm installment framework for all clients in India. The stage has as of late been ascending the graphs to arise as a prevailing name in this area attributable to it as of late arising as a unicorn among the Indian new businesses this year.
Razorpay
Razorpay, you may use it for your business and payments. You may have done online payments through Razorpay. Razorpay is the best payment gateway for online payments in India. Razorpay has a valuation of $3 Billion and is used by small as well as many big businesses.
There are many online platforms today like Paytm, PayU but why did people choose Razorpay. There are many reasons and strategies of Razorpay which led Razorpay to India’s best payment gateway. Within a year, Razorpay processed $40 billion (roughly Rs. 2,93,944 crores) in total payments volume, and revenues grew 40–45 percent month-on-month throughout 2020. Today, over 8 million businesses use Razorpay which stands testimony to the growth and uptake we have seen for our services over the past year.
Razorpay permits its clients to get to various installment approaches through their foundation like net banking, check card, Visa, and even wallets like Ola Money or Airtel Money.
Through this blog, we will give you substance about the foundation of Razorpay, about its organizers, its plan of action, its subsidizing, its example of overcoming adversity, its starting point, just as its development.
How Razorpay Started?
Razorpay was founded in 2014, by Shashank Kumar and Harshil Mathur. Shashank Kumar and Harshil Mathur, are both Roorkee Alumni. And when they wined the Y Combinator’s startup program in 2015, they got the confidence that they can start their own startup. Then they quit their job and incubated their startup at start-up oasis, Jaipur.
Not only Razorpay founders had confidence in their startup but investors also had confidence in Shashank Kumar and Harshil Mathur’s startup which is Razorpay. That is why Razorpay Software Pvt, as the company is formally known, has raised a total of $366.5 million so far. And after this only Razorpay become the unicorn startup of India.
Business and Revenue Model
The Razorpay stage charges about 0.25–0.5 percent expenses for every membership assortment exchange which happens through their door. Through the setup of adaptation 2.0, the stage has provoked different income streams heading ahead. The organization charges however much two percent on each exchange completed through their installment door.
Razorpay’s estimated annual revenue is currently $145.2M per year. It is now the unicorn startup of India. The company revenue and profits are growing very fast. Razorpay, India’s leading Fintech Unicorn, today announced that it registered 3X growth in payment volumes over the past 12 months.
People have adopted digital payments because of covid. When Razorpay was started, Digital Payment Industry In India Reached INR 85,800 Crore. But today in 2020, Digital payments have increased from 1459.02 crores in FY 2017–18 to 4371.18 crores in FY 2020–21 in India.
Razorpay Products
Razorpay 2.0
Razorpay has a multi-item suite with the augmentations of the accompanying: Designed to control the progression of cash, Razorpay Route gives an effective start to finish answer for organizations to oversee commercial centers, split installments, and work with seller payouts.
Razorpay 2.0 was launched in Sept 2017. It provides services of multiple collections, reconciliation, smart collection, subscriptions, and disbursal. It has made online transactions with ease. It is a customized payment solution that can help businesses save up to 20% in cost and time. It provides many benefits to users. Razorpay 2.0 contributes 30% to the revenue of the company.
Razorpay Capital
Razorpay capital provides leading space to small & medium enterprises. This initiative is aimed at solving the liquidity and cash-flow challenges of SMEs. Razorpay Capital is designed to make it easier for Razorpay merchants to get financed and grow.
Razorpay X
RazorpayX is a neo-banking stage that helps entrepreneurs and money groups computerize manual, redundant monetary errands and give experiences into the cash stream. RazorpayX assists little and huge organizations with improving on sorts of payouts including Refunds for clients, Salary payouts with automated statutory payments such as PF and TDS, Vendor payouts with automated TDS payments. Razorpay Capital and Razorpay X contribute 35% of the revenue.
Razorpay Growth
Razorpay has shown an exponential growth rate since its inception. It currently powers more than 17.000 small and large businesses. Razorpay clients include Aditya Birla Capital, NSE, and Vogue India. It has shown a 15–20% growth rate on a month-on-month basis. And it plans to grow up to 30–35% on month to month basis. Razorpay, India’s leading Fintech Unicorn, today announced that it registered 3X growth in payment volumes over the past 12 months.
Covid-19 impact on Razorpay
Because of covid 19, Online payments: India sees 76% growth in digital payments in last 12 months | India Business News — Times of India. Now we can imagine how much percent Razorpay grew in the last 12 months. Razorpay, India’s leading Fintech Unicorn, today announced that it registered 3X growth in payment volumes over the past 12 months. Because of Covid, Razorpay has been benefited a lot. As e-commerce and online payments have grown exponentially.
In JFM’21, Tier-2 & 3 cities and towns continued to contribute over 50% of all online transactions. And according to JP. Morgan, 46% of transactions are done by mobile e-commerce. From this, we can know that company will grow exponentially in the coming future.
How Razorpay grew? (Strategies used By Razorpay)
#1 Let Your Product sell itself
This is one of the greatest strategies in marketing and is used by many companies including Amazon, Netflix, jio, and many others. The strategy is to give a free trial. Most businesses give a free trial, which is access to their premium features for 7 or 30 days. You may have seen it.
Actually what the company does is that they create their premium version so great that more than 60% of the users buy the premium plan after using the free trial. The same strategy was used by Razorpay. As I said earlier that its premium features are amazing. That is why the chance of buying it after using a free trial increases a lot.
You may have felt the same experience on Netflix and Amazon. This is one of the greatest strategies used by many businesses which you could also use.
#2 100+ Methods Of Payments
Razorpay has introduced 100+ payment modes including Credit and Debit Cards (Visa, Mastercard, Rupay, AMEX, Diners), Net Banking from top 50+ banks, UPI (Web Collect & UPI Intent), Online Wallets, EMIs (Credit/Debit Cards & Cardless), PayLater and NEFT/RTGS payments.
Razorpay has made it very convenient for its users. As it includes more than 100 payment methods, anyone can pay with whatever they have. Some methods like visa, MasterCard, Google Pay, and UPI are used by everyone. They can also have these 4 payment methods but for the convenience of its users, it has implemented 100+ payment methods.
This thing led Razorpay to be used by everyone. Every small and big businesses use Razorpay because they know that the client has many options to pay. Thus Razorpay did not focused on any one method of payment and introduced many methods so that there should not be any kind of disturbance in payment. It has gained a competitive advantage.
Razorpay provides support for multiple wallet options including Amazon Pay, Vodafone mPesa, JioMoney, Freecharge, Airtel Money, Ola Money, PayZapp, and Mobikwik. Razorpay also provides support for international transactions. Razorpay supports all major international cards and 92 currencies including USD, EUR, GBP, SGD, AED.
#3 Competitive Features
Razorpay has some amazing features with giving it the moat. Moat word is introduced by warren buffet, and it means that the business has some specialties which give a business advantage to stay ahead from its competitors. It provides businesses a barrier between him and his competitors.
And Razorpay has a moat of amazing features which not only let it be competent but also it increases its customer experience. Razorpay has some of the features like amazing visuals, easy to integrate checkouts, no restriction which increases customer experience as well as business experience.
The first feature is no restriction. This is an amazing feature for most of us. As you may have experienced that whenever you do the online payment on any external site or e-commerce site, you are redirected to the payment methods official site saying that the site is not secure. And often many gets irritated. The payment gateway redirects to their own site first, like in Paytm. But Razorpay does not do this, which is one of the key features of Razorpay.
The second is easy to pay or integrate checkouts. Razorpay has a very clean, practical dashboard. It is very easy to pay through Razorpay. Razorpay has great UI in its dashboard. As humans love visuals, it also contributes a lot to Razorpay success.
The third important feature is easily integrated with mobile apps and or any websites. Most of us who have websites know, how much hard it is to set up the payment gateways in our website both for mobile and pc users. But Razorpay makes it very easy as it can be easily integrated with mobile apps as well as in websites. That is why you may see Razorpay payment gateways on many websites.
There are lot more features of Razorpay, but the 3 features I listed I think was the most important features which give Razorpay a competitive advantage.
#4 Flexible Price Plans
Having a flexible price plan gives Razorpay a competitive advantage. We can divide this thing into 2 parts.
The first plan of Razorpay is the standard plan which is designed for Startups, Small and Medium Enterprises. It is literally designed for small businesses as it gives you many features for free. And also take a very low commission. Standard Plan gives you Email, Chat and Call Support Available and is completely online, paper-less activation. This is designed and can be used by small businesses, new startups, and also medium businesses. It also does not take any setup fee or annual maintenance fee which makes it more popular.
If small businesses can get online with many features, + secure payment and also with 0 setup fee and maintenance fee, this would be amazing for them. That is why Razorpay has today over 5 Mn businesses including the likes of Oyo, Cred, Facebook, Flipkart, Zomato and Swiggy, Byju’s, Zilingo, Yatra and Goibibo, as well as the telecom giant Airtel, Facebook, Airtel, BookMyShow, Ola, Zomato, Swiggy, Cred, ICICI Prudential among others and is all set to reach 10 Million businesses by the end 2021.
The second plan is the very great enterprise plan. It is designed for large-volume businesses. And it is so great that the client which used that will never leave it. It includes many features and advantages. It also gives control to many things. The reviews and feedbacks are very great. It let businesses have Early Access to New Features. Razorpay also gives many checkouts features in this plan. This strategy creates a barrier in front of customers. Which is if someone used this, will be here always and be a loyal and regular customer of Razorpay.
#5 Competitive Advantage
When on 11th April 2016, the UPI payment option came in India this payment system was not the trend as today. People had many other options to do payments. Many few people used the UPI payment method. But when this payment method came in trend, no other payment gateway accepted this payment system.
But Razorpay had. This gives Razorpay a competitive advantage. Razorpay does the things before the competitors did. Razorpay accepted UPI payment after it had launched. Though many people did not use it when someone in a trend many peoples started using it. And at that time if businesses had to accept payment through UPI, Razorpay was only the option.
Today as said earlier, Razorpay has more than 100 payment methods, but most frequently people only used 30–40 among them. But Razorpay today also adds many payments methods.
Razorpay does not follow the trend, but it does everything before the trend, which gives it a lot of competitive advantage.
#6 Identify and track the right subscription-related metrics
The company has been keeping enhancing customer experience to date. It has been analyzing the subscription-related metrics and updating them with time. Of course, if a company wants to progress, then it should definitely study the customer data and think of new services.
Razorpay has been keeping trying to bring some services which not only enhance the customer experience but also let Razorpay be the best payment gateway. If you also want to grow your company, you also have to identify the user experience and keep updating that because today customers have many other options.
Conclusion
Razorpay has been doing very well growth till now and hopes it will continue in the future. Razorpay has many future plans which will be making Razorpay the only great option in the market. Razorpay has been trying to do the following things in the future:l
· Company is planning to invest in Fintech B2B & Software service startup and expand it.
· As per razorpay team, the Indian finteech market will touch rs 6.2 lakh crore by 2025
· Company is planning to hire additional 500 employees buy FY21
Razorpay has taken growth of 3X growth in payment volumes over the past 12 months. The monthly growth of Razorpay is great. Pandemic has helped Razorpay in a very amazing way. As because of the pandemic, both businesses and customers are paying online.
Digital payments have grown by 76% in the last 12 months. Congratulations to Razorpay for coming to the list of unicorn startups in India.
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