New Delhi: Razorpay Software Pvt. Ltd, an online payment gateway for merchants, launched the unified payment interface (UPI) on its portal on Friday. The option will enable customers of merchants having Razorpay to make online payments through UPI, in addition to internet banking, virtual wallets, credit card and debit card.
“This will be the first large-scale roll-out on the merchant side and does not require the addition of any code to start offering UPI payment options to their customers. All of Razorpay’s merchants will have access to receiving payments via UPI starting today,” said the company in a statement
In a step towards cashless economy, National Payment Corporation of India (NPCI) with the support of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) created UPI and launched it in August.
The UPI technology allows a customer with a bank account to transfer money and make payments on a real-time basis that is available 24x7.
“Anyone with a mobile phone and a bank account will be able to benefit from UPI for transacting money online. This is a major change for online commerce as UPI will allow merchants reduce transaction costs and create a faster checkout experience,” said Harshil Mathur, chief executive officer and co-founder, Razorpay.
The UPI system will need just one virtual ID called virtual payment address (VPA), similar to an email address, for authentication without disclosing the user’s bank account details and users can send and receive money on a two-factor authentication.
“In keeping with our robust technology, our systems will automatically update this option for our entire merchant base. Merchants need not worry about integrating extra lines of code to offer UPI,” added Mathur.
Backed by MasterCard, Tiger Global Management and Matrix Partners, Razorpay was founded in 2014 by Mathur and Shashank Kumar. The company provides payment solutions for over 10,000 merchants such as Videocon, Nykaa, Zerodha, NestAway, Udacity and Chai Point, among others.
Razorpay enables these e-commerce businesses to accept online payments via credit card, debit card, net banking from their end customers.
Earlier in August, mobile payments start-up PhonePe Internet Pvt. Ltd, owned by Flipkart, had announced to launch its app based on the UPI platform.
As per a market research report published by Ken Research Pvt. Ltd, the Indian payments market is forecast to reach Rs.8,172 billion by 2019.