Mastercard, an American multinational financial services corporation headquartered in New York made an announcement in a press release stating that it is partnering with Indian FinTech Razorpay to advance digital payments for small and midsized businesses (SMBs). Razorpay is a financial technology headquartered in Bangalore, India that was founded by Harsil Mathur and Sashank Kumar in 2014. The company provides payment solutions that allow businesses to accept, process, and disburse payments. It is the only payments solution in India that allows businesses to accept, process, and disburse payments with its product suite. It gives you access to all payment modes including credit card, debit card, net banking, UPI, and popular wallets including JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money, and PayZapp. It also recently launched a new business-to-business tool in multiple languages to connect customers with third-party companies.
The merger will enable Indian startups and SMBs not only to inculcate technology into their operations but also speed-up digitalization while also maintaining business continuity and preparing for alternatives to cash payments. Moreover, both companies are determined to work to advance the acceptance of digital payments in India to help merchants and payment aggregators grow their businesses. One of their initiatives of both the companies would be making recurring payments more accessible to businesses and onsumers by creating seamless onboarding solutions for bill payments, digital content platforms, and other subscription services
Before the pandemic took hold, Mastercard said some 90 percent of India’s retail payments were conducted in cash.
Amitabh Tewary, chief innovation officer at Razorpay believes that through this tie-up they are going through one of the biggest transformations in Indian financial history. The FinTech revolution will significantly change the payment and banking experience of consumers and businesses now and in the years to come. “New businesses are evolving every day with different payment and banking needs and catering to a different set of consumers and markets,” he mentioned in a press release.
One of the goals of this partnership is to intended to surge digital adoption in Tier 2 and Tier 3 cities including Ahmadabad, Kanpur, Chandigarh, Patna, Dehradun, Pondicherry, Pune Madurai, Baroda, Nashik, and Trichy. Tewary said that technology will help SMBs better develop resiliency.
Mastercard is excited to extend its partnership with Razorpay, India’s youngest unicorn, on a strategic level,” said Rajeev Kumar K, senior vice president of market development for South Asia at Mastercard. The company aims to make merchants across India digitally equipped and welcomes the fresh thoughts and technology that Razorpay will bring to help achieve this goal. Mastercard is committed to developing safe, secure, and more convenient ways to make payments with its technology and expertise and is confident this partnership will deliver that and more,” he added.