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Razorpay partners with Axis Bank, NPCI to launch turbo UPI
May 30, 2023
Fintech unicorn Razorpay on May 30 launched Turbo UPI in partnership with Axis Bank and the National Payments Council of India (NPCI). Turbo UPI aims to make UPI payments faster and reduce potential payment failures.
Merchants can integrate Turbo UPI at the payment gateway, which eliminates the need for customers to go to third-party UPI payment apps. This will allow customers to pay directly from their UPI-linked bank accounts within the merchant app. The additional step of switching apps is estimated to cause almost 5-10 percent of payment failures.
Last week, Paytm, which also has a payment gateway solution, launched a similar product called “UPI SDK”. Paytm’s product supports UPI payments through UPI Lite, as well as Rupay Credit Cards linked to the UPI account. SDK stands for software development kit, or a software plug-in that a merchant can integrate with their payment gateway.
“This is a one-click process and the payment is completed much faster. Here no PSPs (payment service providers) are required, the merchant app will itself become a UPI App. The merchant will install a Razorpay Plug-in and the customer can directly link their bank accounts to the merchant app,” said Shashank Kumar, cofounder and Managing Director of Razorpay, in an interaction with Moneycontrol.
The additional steps involved in using a third-party app like Google Pay or PhonePe can make the payment process cumbersome. Sometimes, messages or notifications for the payment prompt may be delayed, which could result in customers missing the payments. This is one of the reasons why some large digital merchants prefer to build their own UPI payment solutions. For example, Amazon has Amazon Pay UPI, while Zomato recently launched Zomato UPI. Flipkart also has plans to start its own UPI payments solution.
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