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Razorpay launches Instant Refunds product in India

RazorpayBengaluru-based Razorpay, a neo-banking company, has launched its Instant Refunds product thereby leading to improvements in the consumers’ online payment experience. The new feature activates refunds and, credits the customer’s source account across payment methods such as credit cards, net banking and UPI within a minute of the initiation.

Shashank Kumar, CTO & Co-Founder, Razorpay says, “Instant Refunds are the new normal and central to a great customer experience. A lot of consumers fail to use online payment methods as they feel getting refunds through an online platform is a very time-consuming task, hence they prefer CoD as the best alternative. 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 added, “Our Instant Refunds feature ensures that the refund is processed at a 3600x faster pace than the normal expected time of 5-7 business 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.”

In December 2019, Razorpay revealed its plans to employ an additional workforce of 400 staffers by mid-2020 to strengthen its technology and product domain, as reported by The Economic Times. According to regulatory filings with the Ministry of Corporate Affairs (MCA), the earnings of the company’s operating revenues increased from INR 0.9 billion in FY18 to INR 1.93 billion in FY19, ending in March. Thus, making the Bengaluru-based payment solutions company to register a 2.14X growth in its operating revenues, as per news reports.

The company has reported that it has received an investment of $106.5 million through Series A, B and C funding from investors such as Tiger Global, Matrix Partners, Y Combinator, Sequoia India, Ribbit Capital and MasterCard. The issuance of instant refunds by Razorpay will enable businesses to retain customers, provide a hassle-free payment experience and also transparency on the processes to both businesses and the end-users.

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