Razorpay POS introduces 2-minute instant refunds on failed UPI transactions

Razorpay, an omnichannel payments and banking platform for businesses, on Monday, January 22, announced the launch of instant refunds on UPI transactions by Razorpay POS. This development will allow merchants to provide a more seamless payment experience by providing instant refunds for failed UPI transactions within 2 minutes, Razorpay said.

UPI payments have rapidly emerged as the norm for digital payment acceptance in India.

In 2023, UPI platform transactions exceeded the 100 billion-mark, marking 60% growth from the previous year's 74 billion, as reported by the National Payments Corporation of India (NPCI).

A survey conducted by NeoGrowth in 2023 revealed that 53% of MSME retailers identified internet issues and failed transactions as major demotivators for utilising UPI transactions in their businesses.

Commenting on the industry-first solution, Byas Nambisan, CEO, Razorpay POS, said, “According to our data, 5-15% of UPI transactions see friction due to pending status and our merchants lose their business in 30-40% of the cases wherein the customer is not comfortable making a double payment via UPI or paying through any other method. This new offering reiterates our goal of simplifying money movement and demonstrates our innovation-first mindset as we continue to work towards shaping the future of payments.”