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Razorpay POS boosts In-Store Payments with Instant Refunds for failed UPI transactions

By Gloria Mathias

January 25, 2024

  • Accounts
  • Digital Payments
  • FinTech

Razorpay, Accounts, Payments, Indian Merchants, Indian Exporters, Digital Payments, FinTech, MoneySaver Exports Accounts, Visa, Mutual funds Investments, Debit Card Investments, CBO, COO, Rahul Kothari, Instant Payments, Instant Refunds, Fintech News, Payments Technology, In-store Payments, Merchant Payments, UPI Payments, India Fintech news,  Razorpay, India’s Omnichannel Payments and Banking Platform for Businesses has announced the launch of Instant Refunds on UPI transactions by Razorpay POS.

This solution will allow merchants to provide a more seamless in-store payment experience to their customers by providing instant refunds for failed UPI transactions within 2 minutes, resulting in faster checkouts.

When transactions are delayed and funds are debited from the consumer’s account but not received by the merchant, customers hesitate to retry the payment or opt for an alternative method, often abandoning the purchase. This not only hampers the consumer experience, causing confusion and frustration but also raises operational costs for merchants, impacting their overall business.

Razorpay has leveraged technology to address this challenge with instant refunds on UPI payments through Razorpay POS. Using the Razorpay POS device’s fully automated system, the refund process now takes a maximum of 2 minutes, compared to the industry standard of 5 to 6 business days. The process involves a swift attempt within 3 seconds, concluding if successful. In case of failure, the system persistently attempts three times, each attempt spaced 5 seconds apart, sparing a merchant’s manual efforts altogether.

Byas Nambisan, CEO, Razorpay POS, said, “With the increasing preference towards providing omnichannel payment experiences, businesses must have access to the right solution that can make this happen, end-to-end. According to our data, 5–15% of UPI transactions experience friction due to pending status, and our merchants lose business in 30–40% of cases where the customer is not comfortable making a double payment via UPI or paying through any other method. It was therefore critical for us to nip this in the bud by empowering our merchants to make these instant refunds happen, enhancing customer satisfaction, trust, and faster checkouts. This new offering reiterates our goal of simplifying money movement and demonstrates our innovation-first mindset as we continue to work towards shaping the future of payments.”

Razorpay POS’s holistic expansion has made in-store payments seamless and hassle-free, adapting to an evolving business environment where a hybrid approach is essential for engaging with customers.

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