Razorpay Unveils Turbo UPI, a Seamless Payment Solution for UPI Network
- ByStartupStory | May 30, 2023
Razorpay, a fintech unicorn, has recently unveiled ‘Turbo UPI’, a convenient one-step payment solution for the UPI network. This announcement comes just days after Paytm introduced their UPI SDK. With Turbo UPI, users can make payments seamlessly without being redirected to external apps during the checkout process. Razorpay collaborated with the National Payments Corporation of India (NPCI) and Axis Bank to bring this service to market.
Last week, Paytm introduced its UPI SDK (Software Development Kit), enabling customers to make UPI payments directly within the app of online merchants, without the need for redirection to the Paytm app. In an official statement, Razorpay announced the launch of Turbo UPI, emphasizing its ability to provide a quicker payment experience by eliminating the redirection to external payment apps. The fintech unicorn also stated that businesses utilizing Turbo UPI on their platforms could potentially witness a substantial 10% boost in the success rate of UPI payments.
“Turbo UPI also offers granular insights into the end-users drop-off pattern and enables merchants to control the entire payment experience of their customers, end-to-end,” the statement said.
Razorpay has introduced a new service called Turbo UPI, which aims to capitalize on the growing popularity of UPI as a digital payment method. The rationale behind this new offering is to provide businesses with an alternative to third-party apps and address the issue of limited visibility into customer drop-offs during the payment process. Turbo UPI has already been integrated into various apps and platforms, including Tata StarQuik, ixigo, Trainman, Ferns N Petals, and Dhan, among others.
Commenting on the launch, Shashank Kumar, cofounder and MD at Razorpay, said, “We wanted to build a solution that not only made the end-users’ UPI payment experience fast & frictionless but will also help businesses with a significant increase in success rate by 10% for UPI transactions, empowering businesses with higher revenue potential in the evolving digital landscape,”
According to Kumar, implementing a streamlined one-step solution can effectively minimize non-technical errors that often result in drop-offs and enhance UPI transactions. Recent data from the NPCI indicates that UPI transactions reached a new peak in April 2023, with a 2.45% increase from March, totaling 889.81 Crore transactions. The NPCI has set an ambitious objective of achieving 1 billion daily UPI transactions. In April 2023 alone, approximately 296.60 million transactions were recorded, which is nearly 30% of the desired target. Given the significant potential for UPI payment growth, fintech platforms have been leveraging this instant payment system to develop innovative offerings.
In the previous year, CRED entered the UPI market and managed to capture a modest portion of UPI payments. As of April 2023, CRED facilitated 4.57 Crore transactions, accounting for 0.5% of the total transaction volume, with a combined value of INR 20,729 Crore, representing 1.5% of the total transaction value. Additionally, under the leadership of Kunal Shah, the fintech unicorn introduced peer-to-peer (P2P) UPI payments on its platform in April.
During April 2023, the dominant players in UPI transactions were PhonePe, Google Pay, and Paytm, collectively responsible for nearly 97% of the total UPI transactions, amounting to 862.54 Crore transactions. Recently, PhonePe followed in the footsteps of Paytm by introducing UPI Lite, a convenient feature that enables no-PIN payments for transactions under INR 200. Additionally, as a result of its foray into cross-border UPI payments earlier this year, PhonePe’s parent company Walmart has prompted Paytm to announce its own plans for international expansion.
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