Razorpay, an online payments platform, announced today the launch of its flexible Payments solutions that opens the market for SaaS businesses to start accepting recurring payments from India and abroad. The ‘Recurring Payments’ feature auto-debits transactions from the customer’s account without the need for any manual intervention from the customer.
With the recurring Payments feature, companies will now be able to reduce significant hours spent in collection of recurring invoices for online businesses. The feature also makes it easier for customers to schedule payments for products or services rendered by online businesses automatically and increase the efficiency of Payments systems.
Razorpay’s API driven service also provides greater control over payment collection by helping merchants charge customers in real-time, therefore, the timing and the amount need not be specified at a predetermined date.
Payments is a major reason for stunted growth for SaaS businesses and Razorpay’s ‘Recurring Payments’ feature will go a long way in solving these issues.
Currently, SaaS businesses take either of two approaches. Use an international payment gateway for recurring transactions month-on-month. This option is only supported for Indian cards which have International transactions enabled and the fees are exorbitant.
Businesses opt for a payment model which has a 6-months payment plan or an annual payment plan for easier collection. This model hinders customers from trying out the service for a shorter duration – meaning potential loss of customers for SaaS businesses.
The feature has already been rolled for a number of clients including Zoho, a leader in the SaaS applications space. With the integration, Razorpay will offer its developer friendly payment solution and superior technology to Zoho’s products – Zoho Invoice (online invoicing solution), Zoho Books (online accounting solution), Zoho Subscriptions (online subscription management solution) and Zoho Inventory (online inventory and order management solution).
“Saas businesses find it extremely difficult to manage all the hassles that come with recurring payments from customers. We’ve had existing clients and customers reach out to us and ask for options to circumvent this complicated process. There are also companies who register outside of India due to these payment related issues. We are also glad to be the preferred payment gateway for Zoho’s bouquet of finance products in India. Globally, Zoho has partnered with major players like Paypal. The integration with Razorpay in India, is indeed a proud achievement for us”, said Shashank Kumar, Co-Founder, Razorpay.
Zoho’s customers from India can now offer a seamless checkout experience for one-time and recurring payments with a host of Razorpay’s payment options including card payments, multiple wallet offerings and net banking with over 50 banks.
“We were looking for an India-based payment gateway that is not only flexible but also provides the best processing rates to our merchants and onboards them easily. Razorpay fitted in perfectly. With Razorpay’s integration, we can now help our Indian merchants get paid faster”, said Sivaramakrishnan Iswaran, Director of Product Management, Zoho.
Razorpay is the second company from India to be selected by the world’s most prestigious startup accelerator Y Combinator, with over 10,000 merchants including the likes of Papa John’s, Knowlarity, Runnr, Chai Point, Nestaway, Eatfresh, among others.