Bengaluru-headquartered Razorpay, a digital bank startup, has introduced its Instant Refunds product, which aims to enhance its clients’ online payments experience. The newly-launched feature activates refunds and credits the user’s source account across several different payment methods including credit cards, net banking and UPI within minutes.
Shashank Kumar, CTO & co-founder at Razorpay, said that Instant Refunds are the “new normal” and play a key part in providing an excellent customer experience. Many consumers don’t use digital payment methods because they think that obtaining refunds via an internet-based platform might be time-consuming, Kumar explained.
That’s why users tend to prefer cash on delivery (CoD), Kumar added.
He also mentioned:
“Given the technological advancements being made in the fintech ecosystem, its fair for customers to expect refunds as fast as possible. A solution like Instant Refunds will not only help build consumer confidence in digital payments but also reduce losses for ecommerce companies where CoD has become an expensive option with more than 50% online transactions made through cash.”
He further noted that the company’s Instant Refunds feature allows refunds to be handled at a “3600x faster pace” than the regular, or average, time of 5-7 working days.
“The team is focused on creating new technologies designed to make the entire payment lifecycle hassle-free. We believe this new feature will take customer experience a notch higher, help brands create a competitive advantage, and even make them more profitable.”
Last year, Razorpay announced its plans to hire 400 new staff members by the middle of this year in order to improve its technology and product offering. Regulatory filings with the Ministry of Corporate Affairs revealed that the firm’s operating revenues increased from around INR 0.9 billion ($12.6 million) in 2018 to INR 1.93 billion ($27.1 million) in 2019, for the time period ending in March. This notably represents a 2.14X growth in RazorPay’s operating revenues.
RazorPay confirmed that it secured $106.5 million in funding via Series A, B and C investments from established investors including Tiger Global, Matrix Partners, Y Combinator, Sequoia India, Ribbit Capital and MasterCard. By providing instant refunds, Razorpay will help businesses to retain more clients, offer a convenient payment experience and allow for greater transparency.