Razorpay’s innovative Block Push Payments ensures that customers use payment options with the order ID attached to the transaction, adding an extra layer of security and efficiency to the transaction process. 

Understanding the Role of UPI in Digital Payments

The Unified Payments Interface (UPI) revolutionized digital transactions in India. Developed by the National Payments Corporation of India (NPCI), UPI seamlessly links multiple bank accounts to a single mobile app, allowing users to effortlessly transfer funds between individuals and merchants using their smartphones. With its simplicity and security, UPI has gained widespread popularity, offering both Push and Pull payment options.

• Pull Payments: Initiated by businesses and made by users.
• Push Payments: Initiated and executed by users themselves.

There are multiple methods through which push and pull payments can be made.

Push Payments to VPA: The Challenge Merchants Face 

When using UPI, a Virtual Payment Address (VPA) serves as the unique ID for transactions. Users can easily transfer money through UPI apps like GPay by entering the recipient’s VPA or Phone Number. Users can make future payments to the same VPA through the transaction history of UPI apps by clicking on “Pay again”. These payments are called push payments to VPA.

However, challenges arise when users make push payments to Business VPAs outside Razorpay’s checkout system. These payments do not have an order ID associated with them. Although the payment succeeds on the UPI app, in the absence of an order ID, payment aggregators treat these transactions as “unexpected,” and are refunded back to the customers. In a situation like making doorstep deliveries, since the UPI app of the user shows a successful payment, delivery executives are likely to deliver the product or service ordered by the customer. This results in money loss for merchants as the payments are sent back to the customers. 

Empowering Merchants for the Future with Razorpay’s Block Push Payments!

In summary, Razorpay’s Block Push Payments offer a game-changing solution, addressing the complex issues merchants encounter in UPI transactions. By dealing with the risks associated with push payments to VPA, Razorpay not only enhances transaction security and visibility but also prevents money loss for merchants.

To make this transformation seamless and smooth, Razorpay emerged as a game-changer with its innovative Pay on Delivery (POD) solution. A feature that helps businesses convert cash on delivery orders into online payments with the help of QR codes and Payment links, eliminating issues of cash unavailability for customers and sparing merchants from waiting days to receive funds in their accounts.

Cash Crunch: The Operational Toll of Delayed Cash Flow and COD Returns for Merchants

Merchants require a solution for instant cash flow into their accounts and to minimize delivery failures, which lead to additional costs. Let’s explore a few of the major issues faced by merchants below:

• Detained Payment Settlements

Money can take 2 to 14 days to be credited, introducing a delay in the financial flow businesses must navigate.

• Drop in Operational Efficiency

Operational efficiency in day-to-day business activities drops by at least 6% due to considerable time spent on collecting and depositing cash. This adds complexity to routine operations.

• High Return Volumes

Cash on Delivery (COD) makes up 60% of the total return volumes. The mix of cash transactions and customer unavailability during delivery highlights the need for businesses to use a more efficient payment approach.

• Delayed Refund Process

The detailed refund process for Cash on Delivery (COD) orders takes 14% more time, causing a delay that directly affects how satisfied and trusting customers feel. 

• Risk of Cash Pilferage

Cash Pilferage occurs when there is a breach in the security of the payment process often resulting in theft during delivery. Businesses need a solution to mitigate the risk of financial loss from theft or unauthorized access to cash.

Razorpay’s Pay on Delivery Solution: Digitising Cash Orders for Faster Revenue Realization

To address the above challenges, Razorpay invented a solution for businesses that enables faster access to cash inflow and eliminates logistics overheads – Pay on Delivery.

This is a solution that helps merchants digitize cash on delivery orders for faster revenue realization and reduced delivery costs by generating QR codes and Payments Links instantly.

• Incentivising Last-mile Payments

Using Pay on Delivery incentivizes customers to pay at any point during the last mile of delivery. This includes:

– In-transit Payments – The customers need not have to be physically present at the time of delivery and they can pay while their order is in transit. The customers can pay via a Payment Link sent via SMS/ WhatsApp/Email.

– Point-of-delivery Payments – The delivery agent selects the digital mode of payment and generates a QR code. Once the customer payment is successful, the delivery agent confirms the delivery.

• Instant COD via 3PL 

Razorpay is the First Payment Gateway to enable businesses with 3PL (Third Party Logistics) partners to get instant access to their Cash on Delivery (COD) payments.

• Reduced Delivery Costs

This groundbreaking solution enhances profitability significantly by reducing delivery costs by 42%. It eliminates cash handling costs, loss due to theft, delivery failures due to cash unavailability while improving operational efficiency.

• Faster Refunds

Razorpay Pay on Delivery also enables 14% faster refunds by automatically capturing customer account details while processing digital payments. This instils trust in first-time customers and encourages re-purchases.

• Higher Success Rates

With features like Status Check API, Block Push Payments and Multi-Bank Support, our QR codes are built to provide best-in-class Success Rates with payment confirmations within 5 seconds.

The Future of Last Mile Delivery Payments!

In conclusion, Razorpay’s Pay on Delivery Solution is a game-changer for businesses navigating the delivery landscape. By swiftly addressing challenges like delayed payments, and operational hiccups, and ensuring customer satisfaction, Razorpay transforms how post-purchase transactions are handled. The innovative Pay on Delivery, along with the 3PL model, not only speeds up revenue but also provides a smooth and secure payment experience. Offering quick refunds, varied payment options, and significant cost savings, Razorpay has become the key to increased efficiency and profits for businesses with all kinds of delivery models.

To kickstart this transformative journey, reach out to us!

All three of them have been relying heavily on digital payments to run their businesses smoothly. Recently, they were invited to a conference about the evolution and future of digital payments in India, where they chatted about work and their experience with online payments. Let’s join them: Let’s leave Ankit, Alok and Pritisha right there. Aren’t you curious about which QR code Pritisha has been using? Well, it’s the new QR code offering from Razorpay. The future-forward Razorpay Multi QR Codes are built to truly transform how you accept contactless payments. Here’s how: 

Meet Razorpay Multi QR Codes – the most robust one out there 

Generate as many static, dynamic, Bharat or UPI QR codes as you need

With Razorpay, there is no cap on the number of QR codes you can generate. Whether you need to collect a one-time payment or multiple payments, you can generate both static and dynamic QR codes and multiple ones of them. Similarly, you can either opt for a UPI QR code or Bharat QR code, depending on your requirements. Do keep in mind that UPI QR codes can be used for P2P (Person to Person) and P2M (Person to Merchant) transactions both, but Bharat QR codes can be used only for P2M transactions. 

Related Read: How to Generate GST-Compliant Dynamic QR Codes?

Offer multiple payment options to your customers

You needn’t just rely on UPI as a payment method for your customers. With Razorpay multi-payment method QR codes, you can even offer credit and debit cards as a payment mode. 

Integrate your QR codes with POS, billing system, and delivery app 

With Razorpay multi-functional QR codes, you can reconcile payments in real-time for all QR based payments using dashboard reports.  So, if you want to check your payments’ status at any time of the day, your Razorpay dashboard will have all the answers you need. 

Get your own multi-branded QR code with your company name, logo and custom merchant VPA

Now your QR codes will really stand out from the rest as we offer multiple branding options such as including your brand name and logo on the QR code. Even once the customer scans the code, your brand name will appear on the app screen while they make their payment. This helps you create better brand recognition and recall, and allows you to generate a QR code that is truly unique and has your brand presence on it.  Here’s what a branded Razorpay QR code looks like: 

UPI QR code 

Bharat QR code 

Generate QR codes for multiple stores and multiple customers 

If you happen to own multiple stores, you can generate unique QR codes for each of them, or if you want to create one for each customer individually, you can do so too, with Razorpay MultiQR codes. 

Create a QR code in less than 1 min from the Razorpay dashboard

No raising support tickets or filling in long forms to get access to Razorpay QR Codes. You can simply generate one from your Dashboard, print it, and start collecting payments immediately.  Here’s how easy it is to generate a QR code from your Razorpay dashboard: 

Real-time notifications so you can track payments 

Every time you receive a payment via your QR code, you get a notification so you can constantly stay updated with each transaction, without even having to log in to your dashboard. 

Cleaner, simpler, and easy to understand APIs

To make your experience with Razorpay QR Codes smoother, we have ensured that our new APIs are straightforward and easy to use. You only need a single API to create, close, and fetch your QR code. 

      Related read: Types of payment fraud and how to prevent them

So, when do Razorpay QR codes come in handy? 

To collect payments in physical stores 

Like Alok, if you run a retail store, there isn’t a better way to collect contactless payments. You can simply print and paste a QR code at multiple places in your store and invite customers to scan it to make their payment. 

To replace cash on delivery with contactless transactions 

If you run a logistics business like Ankit or an eCommerce one like Pritisha, your delivery agents can now collect payments with zero contact by simply sharing dynamic QR code with customers. These can also be printed on invoices/bills or product packaging to make it easier for customers to scan and pay. 

Related Read: What is eCommerce POS Integration & How to Streamline Offline & Online Sales?

For in-person collection of payments/fees

Alternatively, if you need to collect payments at an event, or for providing professional services, or at an office, or any other public place, you can simply print out your QR code and get people to scan and pay, without the hassles that come with exchanging cash. 

Want to experience the future of QR codes just like Pritisha, Alok, and Ankit? Sign up now to get started with Razorpay MultiQR codes.