Full-Stack Payments and Banking Platform Razorpay on Thursday announced that it is joining the ONDC (Open Network for Digital Commerce) ecosystem, thus becoming the first payment gateway to launch payment reconciliation services for buyers, sellers, and logistic partners.
"The fintech major becomes the First Payment Gateway to launch a Payment Reconciliation Service for Network Participants (NPs) like buyers, sellers, and logistic partners, thereby streamlining the payment processes on ONDC, and providing them with an integrated single view of all their transactions," Razorpay said in a statement.
Through this solution, Razorpay aims to provide a seamless and efficient way for Network Participants (NPs) to settle funds and process transactions on the Open Network for Digital Commerce (ONDC). By routing settlement information for transactions and providing support for documentation and dispute resolution, Razorpay's solution helps to ensure that transactions are validated and secure.
Shashank Kumar, Managing Director & Co-founder, Razorpay said, “We at Razorpay have always envisioned a world rich of businesses of all sizes - help them leverage digital payment technologies to sell more and grow faster. And so we’re really excited to support the government in this shared vision of democratising e-commerce through the ONDC platform and helping Indian SMEs and Kirana store owners reap the benefits of digital commerce."
"I believe the possibilities the ONDC network provides are endless and I’m confident the Payment Reconciliation Service will only further strengthen the development of ONDC’s tech infrastructure and help the ecosystem grow seamlessly from a payments and compliance point of view," Kumar added.
One of the key benefits of the ONDC is its open network approach, which allows buyers and sellers to transact with each other regardless of the platform they are on. This means that small and medium-sized enterprises (SMEs) will have access to a larger buyer universe, which can help to expand their reach and grow their businesses.
Thampy Koshy, CEO, ONDC said, “We are thrilled to welcome Razorpay to ONDC. This is a significant step towards our goal of enabling seamless and secure digital commerce for everyone. With this addition, we continue to drive transparency and inclusion in the digital commerce space and we look forward to working with Razorpay towards achieving this vision.”
Razorpay is the second fintech to join ONDC this month. Last month digital payments giant PhonePe went live live on ONDC, making its big e-commerce foray with the hyperlocal commerce app – Pincode. PhonePe announced to launch the app in Bangalore in 150 pin codes. Bangalore will be the first city to go live with grocery and food; other cities and categories will be added soon, it said.
