Razorpay focuses on offline payments market in India
The $200 million acquisition of Ezetap, a payments platform, by Razorpay earlier this year, was the company’s largest to date and would aid in its entry into the offline sector. Ezetap allows all forms of physical payment, including cards, mobile wallets, biometric and QR code systems, as well as payments made through messaging apps.
After becoming established in the internet market since 2014, the financial platform is now looking at the offline market. “Our recent acquisition of Ezetap is in accordance with our very clear offline expansion strategy. It’s a major participant in the offline industry, which is entirely new to us, said Rahul Kothari, Chief Business Officer of Razorpay, in an interview with Business Today.
Although businesses like Pine Labs and Mswipe are fierce competitors in the offline payments market, he claimed that this doesn’t keep him on his toes. We are more concerned with how to develop a very serious omni-channel solution for our merchants than we are with the competitors. Because they want to have a 360-degree perspective of the consumer, it is not really practical for them to have distinct online and offline partners nowadays. When making both online and offline payments, customers also want to have a very similar experience, he continued.
According to Kothari, end users want to take advantage of the same advantages they receive online when making offline purchases. These are the new areas we’re focusing on with that plan, he added, in addition to having a very good omni-channel payments experience since that’s the way the entire payments industry will evolve.
Nearly 8 million merchants are registered on the fintech network, and 90% of them are small and medium-sized businesses (SMEs), with the remaining 5-7% being mid-market firms. In the future, Kothari continued, “we see more growth in the SME category than the enterprise segment.”
With a valuation of $7.5 billion in December of the previous year, Razorpay rose to the position of being India’s most valuable fintech start-up. It will continue to concentrate on its two-year-old neo-banking operation in addition to growing its offline offering. “In the neo-banking industry, we assist merchants in managing their finances, and this includes a variety of offerings, such as current accounts, payroll services, forex, foreign currency, payouts, and more. This is primarily about managing money, and we also have a capital business where we lend businesses operating capital. These new companies are mostly targeted at mid-sized and smaller companies, he said.