Razorpay POS, India’s leading omnichannel payments and banking platform for businesses, has launched a revolutionary feature that will enhance the in-store payment experience for customers and merchants alike. The feature, called instant refunds, will allow customers to receive refunds for failed UPI transactions within 2 minutes, instead of the industry standard of 5 to 6 business days.
Why instant refunds matter
UPI payments have become the norm for digital payment acceptance in India, with over 300 million users and 118 billion transactions in 2023, as reported by the National Payments Corporation of India (NPCI). However, businesses face challenges with delayed transactions made via POS devices, which result in a negative customer experience and potential losses.
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.
A survey conducted by NeoGrowth in 2023 revealed that 53% of MSME retailers identified internet issues and failed transactions as major demotivators for utilizing UPI transactions in their businesses. In this context, quick issue resolution becomes a key differentiator and the need of the hour.
How instant refunds work
Razorpay, being a trailblazing force in the fintech industry, has leveraged cutting-edge technology to address this challenge with instant refunds on UPI payments by Razorpay POS. Using 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 thrice, each attempt spaced 5 seconds apart, sparing a merchant’s manual efforts altogether.
Commenting on the industry-first solution, 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. We are constantly innovating to offer solutions that can simplify payments for both businesses and consumers. With instant refunds on UPI transactions by Razorpay POS, we aim to revolutionize the in-store payment experience by eliminating one of the biggest pain points of delayed refunds. This will not only enhance customer satisfaction and loyalty but also boost business efficiency and growth.”
How to avail instant refunds
To avail instant refunds on UPI transactions by Razorpay POS, merchants need to sign up on Razorpay’s website and order a POS device. The device is compatible with all major UPI apps such as Google Pay, PhonePe, Paytm and BHIM. The device also supports other payment modes such as cards, QR codes and wallets.
Razorpay POS is India’s first omnichannel payments platform that enables businesses to accept payments online and offline through a single integration. Razorpay POS also offers features such as GST-compliant billing software, inventory management system, analytics dashboard and loyalty programs.
To know more about Razorpay POS and instant refunds on UPI transactions, visit https://razorpay.com/pos/