Razorpay Joins Forces with ONDC to Empower Indian SMEs
Razorpay joins ONDC to revolutionize India's digital commerce space
27 April 2023
In order to provide network users with a payment reconciliation service, Razorpay became the first payment gateway to join the Open Network for Digital Commerce (ONDC) ecosystem.
The solution would simplify payment procedures and give network users a comprehensive overview of all of their transactions.
Small and medium-sized businesses (SMEs) and Kirana store owners will be able to conduct smooth and safe digital commerce thanks to the cooperation between Razorpay and ONDC.
India's top fintech business, Razorpay, has declared its intention to join the Open Network for Digital Commerce (ONDC) ecosystem. By this action, Razorpay establishes itself as the first payment gateway to offer a payment reconciliation service to ONDC network users such as buyers, sellers, and logistic partners. The program simplifies payment procedures and gives network users a comprehensive overview of all of their transactions. Razorpay will allow the timely transmission of settlement information for transactions and help network members with fund settlement through the payment reconciliation solution. This will make sure that transactions are verified and keep track of audit trails in case of disagreement or discrepancy.
Using the open network concept known as ONDC, buyers and sellers may do business without necessarily being on the same platform. Small and medium-sized enterprises (SMEs) may reach a wider audience of buyers thanks to this strategy. In the retail sector, ONDC recently surpassed the 5,000 daily orders threshold, primarily in the food and beverage (F&B) and grocery sectors. In the last two months, the platform has increased 25-fold.
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ONDC's technological foundation will be strengthened by Razorpay's payment reconciliation solution for network users, which will also enable the ecosystem's smooth expansion in terms of payments and compliance. Using the ONDC platform, the service will also "democratize" e-commerce, enabling Indian SMEs and Kirana shop owners to benefit from it. The network's addition of Razorpay, according to Thampy Koshy, CEO of ONDC, has sparked his enthusiasm and represents a big step towards allowing safe and convenient digital commerce for all users.
When Walmart-backed PhonePe launched its hyperlocal commerce service, Pincode, on ONDC, Razorpay is the second fintech to join. Now, there are 85,000 merchants on ONDC, up from about 800 in December. Razorpay has established an advisory board and chosen NS Vishwanathan, a former deputy governor of the Reserve Bank of India, to serve as its chairwoman in order to ensure compliance, client safety, and risk management. Industry leaders like as Arijit Basu, Chairman of HDB Financial Services, and Aruna Sundararajan, Former Secretary of Ministries of Steel, IT & Telecom, GoI, are also part of the group.
In conclusion, Razorpay's choice to become a part of the ONDC ecosystem represents an important turning point for Indian digital commerce. It will democratize e-commerce, provide SMEs and Kirana store owners access to a wider range of potential customers, and expedite payment procedures. The payment reconciliation service for network users will check transactions, keep track of audit trails, and make sure there are no controversies or discrepancies. Ultimately, the collaboration between Razorpay and ONDC will greatly facilitate safe and smooth digital transactions for all users.