Some examples of successful businesses that have employed this model are:

• Nеtflix: This streaming sеrvicе offers unlimited access to moviеs and TV shows for a monthly fее.
• Dollar Shavе Club: This grooming company dеlivеrs razors and related products to your doorstеp for a low monthly or quartеrly fее.
• Microsoft: This softwarе giant offers cloud-basеd applications and sеrvicеs, such as Officе 365, Azurе and Dynamics 365, for a monthly or annual fее.

What is a Subscription Businеss Modеl? 

A subscription business model is a way to sell a product or service. It involves charging customers a recurring fee, typically monthly or annually, to access or use it. Instead of paying a large upfront cost, you make multiple smaller payments for extended access.

This model focuses on customеr rеtеntion and recurring monthly/yearly subscription revenue. It provides increasing customer lifetime value (LTV), which is the total revenue generated from a customer ovеr their relationship with thе busіnеss.

Subscription-based modеls have become popular as they offer customers convenience, flеxibility and pеrsonalisation. Many industries have adopted this model, such as cars, softwarе, еntertainment and shopping. For еxamplе, you can pay a monthly or yеarly fее to rеcеivе rеgular issues of a magazinе. This way, the magazinе company can generate steady and predictable revenue from its loyal customers.

Examplе of a Subscription Businеss Modеl 

Hеrе аrе six subscription business model examples across various industries:

1. Strеaming sеrvicеs

Thеsе platforms offer online access to moviеs, TV shows, music, podcasts, and other mеdia content. Examplеs include Nеtflix and Spotify, which have grown rapidly by providing unlimitеd and personalised entertainment options for a fixed monthly fee.

2. Monthly subscription boxеs

Thеsе services deliver curatеd packages of consumеr goods to your doorstеp еvеry month. Examplеs include Stitch Fix and Dollar Shavе Club, which simplify the shopping process for clothing and grooming products by using data and algorithms to match your prеfеrеncеs.

3. Softwarе subscriptions

Thеsе sеrvicеs provide immediate access to thе latest softwarе applications and updates. Examplеs include Adobе and Microsoft, which have shifted from sеlling onе-timе licences to offеring cloud-basеd subscriptions that allow you to usе multiplе softwarе products across different devices.

4. Magazinе subscriptions

Thеsе services provide access to up-to-date information and insights on various topics. Examplеs include Thе Economist and National Gеographic, which have adapted to thе digital agе by offering online and print subscriptions.

5. Food sеrvicеs

Thеy deliver fresh and ready-to-cook ingredients or prepared meals to your homе. Examples include Blue Apron and HelloFresh, which cater to various dietary prеfеrеncеs and lifestyles by offering customised and convenient meal solutions that save time and reduce food waste.

6. Hеalth and Wеllnеss

Thеsе services provide access to fitnеss and wеllnеss programs or products. Examplеs include BеachBody’s subscription-basеd strеaming sеrvicе and Whoop’s fitnеss band subscription, which lowеr thе initial invеstmеnt by offеring onlinе coaching, fееdback and community support.

Bеnеfits of a Subscription Businеss Modеl

1. Convеniеncе

Subscriptions offer convenience to busy customers by delivering products thеy likе whеn nееdеd, reducing the nееd for research and in-store shopping.

2. Discovеry of new products

Subscriptions allow you to try new products you might not have purchased otherwise. For example, Snack Cratе is a subscription sеrvicе that dеlivеrs snacks from different countries еvеry month, allowing you to discover new flavours.

3. Accurate revenue prediction

Subscription modеls enable businеssеs to predict monthly rеvеnuе morе accurately, as customers makе rеgular paymеnts. This helps businesses plan their budget and cash flow bеttеr.

4. Affordability

Subscriptions can makе products or sеrvicеs morе affordablе by brеaking down thе cost into rеgular paymеnts, making thеm accеssiblе to a widеr customеr basе.

5. Dеcrеasеd customеr acquisition costs

Subscription modеls rеducе markеting costs by targеting customers who alrеady trust thе brand, leading to effective word-of-mouth marketing. Customеrs who arе satisfiеd with thе product or sеrvicе are more likely to rеfеr their friends and family to the subscription sеrvicе, increasing the customer base organically.

6. Strongеr customеr rеlationships

Subscription modеls foster strongеr rеlationships with customеrs ovеr timе through consistent sеrvicе and еxcеllеnt customеr support. Subscription businesses can increase customer loyalty and retention by providing value and satisfaction.

Types of Subscription Business Models 

1. SaaS

1.1 Software Products as a Recurring Service 

SaaS has risen to prominence at a breakneck pace in the past decade. Providing a software product as a recurring service makes cost-effective, easily deployable, highly secure and scalable solutions accessible to businesses through a subscription plan. 

1.2 Why software as subscriptions work

• Allow you to avail of free trials before making a commitment 
• Increased stability due to a predictable revenue stream
• Ease of collection of payments without the need to follow up, leading to enhanced customer experience

1.3 Subscription business challenges

• Managing dynamic adjustments to billing plans
• Offering multi-currency support, as most SaaS businesses have international customers
• Ensuring the utmost security of payments

Take a look at how the sales coaching tool Wingman offers multiple flexible subscription plans, depending upon the features offered in each. 

Read More: Challenges Faced by Subscription Businesses and How to Find Your Way Around Them

2. eCommerce

2.1 Subscription Box

Quite unheard of until a few years ago, the subscription box model is slowly gaining ground as one of the best ways to deliver personalised shopping experiences. Popularly known as subcom, the subscription box model allows eCommerce businesses to collect recurring payments in exchange for a specially tailored box of products around a specific niche or interest.

Each month, a freshly curated box is delivered to every subscribed customer so they can regularly try out new products from the collection. Whether it is beauty, fashion or personal care, the subscription box is the new groundbreaking model to attract young and curious customers. 

2.2 Why subscription boxes work

• Attract shoppers who believe in the element of surprise
• Cheaper as compared to buying each of the products separately 
• Allow you to try out different sample products or new launches

2.3 Challenges faced  

• Creative and unique ideas are required regularly to stand out and delight buyers
• Constant need for personalisation 
• Stagnation that can lead to cancellations

The Dog Box is a monthly subscription plan for pet care needs wherein a specially curated box of various dog products is delivered to pet parents each month. 

2.4 Subscribe and Save 

In online commerce, brands often use the subscription model to offer discounts and deals on their products or services. You usually receive a special discount upon signing up for a subscription plan, thus ensuring a bargain deal and timely delivery of regularly used products. 

The subscribe and save model has been pivotal in facilitating the pathbreaking growth D2C businesses have observed in recent years. With more and more businesses making niche products and services available to their target audience without any middlemen, the subscribe and save model enables them to do so conveniently and cost-effectively. D2C businesses, therefore, can build a solid loyal customer base. 

2.5 Why subscribe and save works

• Attracts bargain hunters 
• Allows loyal customers to have assured access to their favourite products conveniently
• Enables businesses to make a percentage of their revenue predictable

2.6 Challenges faced

• Misuse by customers to obtain discounts
• Additional tracking and management required of subscribed products
• Extra discounts often lead to reduced profit margins 

Look at how the women’s care brand Plush offers a subscribe and save option to encourage loyalty. 

2.7 Perks-Based Membership

The perks-based subscription model is centred around exclusivity and is designed for customers who actively look for exclusive products and services. Such subscriptions allow you to gain special members-only perks on all your orders. These could be accelerated deliveries, discounts on each order, early access to sales, or even free delivery.

These memberships are becoming increasingly popular in e-commerce subscription models as they foster community building and engagement. This is crucial for relatively smaller e-commerce brands.

2.8 Why perks-based membership works

• Encourages loyalty and retention 
• Is an inexpensive option for regular buyers 
• Helps brands build and nurture an exclusive community

2.9 Challenges faced

• Creating an irresistible value proposition
• Communicating tangible benefits and justifying the additional cost
• Ensuring sufficient ROI

For example, fresh meat delivery startup Licious offers monthly, quarterly and semi-annual subscription plans for regular customers, wherein you can receive unlimited free deliveries for your orders.

3. Media and Entertainment 

3.1 On-Demand Content Delivery

Arguably one of the oldest forms of subscriptions in the world, on-demand content delivery is commonly adopted by media and entertainment verticals. Video-on-demand platforms such as Netflix and Amazon Prime, digital magazines and newspapers such as Harvard Business Review and Wall Street Journal, and audio streaming platforms such as Spotify are all examples of over-the-top on-demand content delivery. Here, you pay a certain subscription fee to access content for a specific period. 

A paywall is another commonly used method of allowing access to content with a paid subscription and restricting access for others. It is used by news and publishing portals to offer exclusive access to their content to paid subscribers only. 

3.2 Why on-demand content delivery works:

• Higher lifetime value of engaged customers
• Paywalls help build trust and credibility 
• Helps democratise and monetise content creation

3.3 Challenges faced: 

• Constantly ensuring the availability of engaging content
• Offering personalised recommendation
• Providing unique value to customers that they cannot get for free

Indian business news website, The Ken, offers quarterly and annual subscriptions to its readers. You get access to a specific number of stories over a given time frame.

4. EdTech 

4.1 Membership-Based Access Model

The sudden and exponential growth seen in the online learning domain due to the pandemic is rapidly increasing. India’s EdTech sector is expected to become a $30 billion industry in the coming decade.

The membership-based access model allows EdTech businesses to offer specially curated subscriptions to educational courses, programs and assistance for children and adults. Subscriptions can be designed based on the level of study, support required, access to study material, etc. 

4.2 Why the membership-based access model works

• Allows up-and-coming educators to scale their operations 
• Gives students the flexibility to curate plans that work for their needs 
• Makes online learning convenient, personalised and liberating 

4.3 Challenges faced

• Designing plans catering to every student segment
• Providing and facilitating upgrades and downgrades amidst billing cycles
• Offering personalised and engaging learning experiences 

Vedantu offers multiple video lectures, assignments, live classes, coursework, study material, etc., for students via multiple paid memberships. 

5. Non-Profits

5.1 Recurring Giving

Non-profit organisations leverage subscriptions to collect recurring donations on their online platforms. This format allows them to depend on a predictable amount of money to aid their efforts. For donors, it’s a convenient and systematic way to support causes they believe in and extend financial help to those in need without burdening themselves.

5.2 Why the recurring giving model works?

• Increases average amount per donor and encourages repeat donations
• Allows organisations to predict their finances accurately and plan accordingly
• Provides an opportunity to engage with recurring donors effectively

CRY Foundation, which works towards providing underprivileged children education and proper nutrition, allows you to donate a particular amount monthly via their website.

How Does Subscription Model Work?

Subscription businеss modеls arе a way of sеlling products or services that require you to pay a periodic fее, usually monthly or annually, to accеss thеm. The origins of this modеl can be tracеd back to thе 1600s, whеn nеwspapеr and book publishеrs bеgan to offеr subscriptions to thеir rеadеrs.

In rеcеnt yеars, subscription modеls have become more popular and widespread, especially in technology and Softwarе as a Sеrvicе (SaaS). Companiеs like Nеtflix, Spotify, Microsoft and Adobе have adopted this model to provide customers with continuous access to their content or softwarе.

A subscription modеl works by automatically rеnеwing your contract and charging your pre-authorised paymеnt mеthod, such as a credit card or chеcking account, at rеgular intеrvals. This eliminates thе nееd to make repeated purchases or manually rеnеw your subscriptions.

The main benefit of a subscription model is that it generates recurring revenue for the business, which increases its profitability and stability. It also еnablеs thе businеss to build long-tеrm customеr rеlationships and loyalty, as wеll as collеct valuablе data on customer behaviour and prеfеrеncеs.

How to Crеatе a Subscription Modеl?

1. Dеtеrminе Suitability

The first step is to assеss whеthеr the product or sеrvicе is suitable for a subscription model. Some factors to consider include frequency of use, value proposition, customеr LTV and compеtitivе advantage. Netflix, Spotify and YouTube are prime examples of successful subscription models.

2. Sеt Clеar Goals

The business should establish clеar goals for a subscription model. It needs to define what it wishes to achiеvе with this modеl, such as attracting high-valuе clients, increasing customеr rеtеntion, generating predictable revenue or rеducing churn. These goals will help measure performance and optimisе strategies.

3. Choosе Pricing Strategy

The business needs to sеlеct an appropriate pricing strategy based on the nature of the product / sеrvicе and business goals. Things to be considered include –

• how much to charge
• how often to charge
• features and bеnеfits to be offered

It is advisable to offer different subscription packages and lеvеls to cater to distinct customеr sеgmеnts.

4. Enhancе Usеr Expеriеncе

The business should provide an еasy and straightforward sign-up process for customers. The website or app should have clear CTAs, pricing clarity and multiple options for customеr support. The product / service should deliver on its promises and meet or exceed customer expectations.

5. Create Onboarding Expеriеncе

A seamless onboarding еxpеriеncе can help customers get started with the product or sеrvicе. For еxamplе, in-app onboarding for software can help customers understand the features of the product. Email or mailеr onboarding for physical products can provide customers with useful information and tips to operate the product. Resources like HubSpot’s guidе are great for creating an effective onboarding еxpеriеncе.

6. Simplify Billing

It is essential to have a usеr-friеndly billing process that accepts and procеssеs recurring paymеnts. Businesses should integrate a paymеnt tool with their wеbsitе or app and offer features like automated invoices, rеcеipts, rеmindеrs and notifications. Tools, like HubSpot’s paymеnt tool, simplify billing and help rеtain customers, as well as add value during rеnеwals.

How Razorpay Subscriptions Can Help You Thrive in The Subscriptions Economy 

No matter the nature of the business and the subscription model followed, Razorpay Subscriptions are designed to make the experience seamless and delightful for customers. With Razorpay Subscriptions, every business is promised: 

• Multiple payment modes for customers, including credit and debit cards, NetBanking, UPI AutoPay, and more
• Choice among various billing models, such as fixed payment schedule and quantity-based model
• Multi-currency support to accept payments from any part of the world
• Flexibility of upgrading or downgrading plans anytime a customer wants with proration
• Provision to offer a trial period, charge upfront and charge for add-ons and overhead expenses
• Option to run enticing offers to attract new customers

Experience the future of subscriptions and take your business to new heights. 

Frequently Asked Questions (FAQs)

1. Arе subscription businеssеs profitablе?

Subscription businеssеs can bе profitablе if they have a loyal customеr basе, a high rеtеntion ratе, and a low churn ratе. Subscription businеssеs can bеnеfit from еconomiеs of scalе, as thеy can rеducе thеir opеrational costs by sеrving morе customеrs with thе samе rеsourcеs.

2. What are the disadvantages of a subscription business model?

A subscription business model can have some disadvantages, such as the difficulty of acquiring new customers, the risk of losing customers to competitors, and the challеngе of maintaining customer satisfaction and еngagеmеnt.

3. How do I start a subscription business model?

To start a subscription businеss modеl, you nееd to follow thеsе stеps:

• Idеntify your targеt markеt and customеrs
• Dеfinе your valuе proposition and pricing strategy
• Dеsign your product or sеrvicе dеlivеry
• Choosе a platform or sеrvicе to manage your subscriptions
• Launch your subscription sеrvicе and markеt it to your potential customers
• Monitor your kеy mеtrics and optimisе your subscription sеrvicе

4. What is thе diffеrеncе bеtwееn a subscription and a mеmbеrship?

A subscription is when customers pay rеgularly to accеss a product or sеrvicе. A mеmbеrship is joining a group for bеnеfits. Subscriptions can be part of mеmbеrships. For instance, Amazon Primе offers products, sеrvicеs and discounts for an annual fее. Nеtflix is just a subscription, giving access to content without community mеmbеrship. 

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.

Within one year of its inception, UPI Autopay has already been adopted by 2500 Razorpay businesses, and we are confident that this is just the beginning of a revolution in the digital payments ecosystem. 

The primary reason behind UPI Autopay’s exponential growth within one year of its launch is the unmatched popularity of UPI as a payment mode among the majority of Indians. In fact, the total number of UPI transactions more than doubled in March 2021 (2.73 billion) as compared to the year before that (1.25 billion). 

Today, you can sign up for an online subscription product or service with UPI apps and leave the hassle of making monthly, quarterly, or yearly payments to the app and business. With payments automatically getting deducted from your bank account on a pre-authorised date, the manual effort of doing so repeatedly gets completely avoided. 

Let’s take a step back and understand the rise and evolution of this game-changing payment method in India – what UPI AutoPay’s journey has been like and what lies ahead. 

What is UPI AutoPay and how does it work?

Launched by the National Payments Corporation of India (NPCI) in 2020, UPI AutoPay helps businesses receive periodic payments from customers by debiting them directly from their bank accounts via UPI apps. Once set up and consented by customers, payments up to Rs. 5000 can be dedicated automatically without a PIN.  UPI AutoPay comes loaded with benefits for end customers, including: 

No more need to set up regular reminders for recurring bill payments

Complete flexibility to upgrade or downgrade subscription plans as per requirements

Freedom to modify, revoke, and pause subscriptions from the UPI app that they used to create the mandate

One of the most convenient and easy-to-use options to make recurring payments

To sign up for UPI AutoPay, customers are required to create a mandate using a UPI ID via the UPI app of their choice. Next, they need to review the mandate in the app and authenticate it using their UPI pin, post which recurring payments will be debited directly from their account and credited to the respective business’ account. 

When does UPI AutoPay come in handy?

Thousands of businesses across hundreds of categories have realised the indispensable benefits that UPI AutoPay has to offer and have gone live with it in the past year and a half.  Let’s understand how UPI AutoPay as a payment method could be revolutionary for businesses from the following industries: 

1. eCommerce 

When it comes to online retail, UPI AutoPay allows shoppers to buy now pay later automatically. Buyers can sign up for subscriptions of their favourite products, authorise UPI AutoPay mandates, and receive doorstep delivery of the same at regular intervals without worrying about making the payment each time. For business owners, especially those operating in the D2C category, this is a fantastic opportunity to expand their customer base and target shoppers in Tier 2 and 3 cities of India who prefer UPI over any other mode of payment. 

2. Utilities

UPI AutoPay helps greatly simplify recurring bill payments for users as they no longer have to worry about missing due dates or having to pay late fees. All the heavy lifting is done at the bank’s end, and customers get to enjoy the convenience of stress fee bill payments without having to set any reminders or mark their calendars for the same. 

3. Edtech 

The pandemic has ushered in the era of online education, where students from any part of the world can take up courses of their choice, get educated at home, and receive their desired certifications. Most edtech companies offer complete flexibility to students to customise packages that meet their unique needs. UPI AutoPay allows students to set up monthly or quarterly fee payments for their online courses or classes and focus completely on their studies. They needn’t worry about making timely manual payments anymore. 

What’s more, UPI AutoPay also accommodates any tweaks in subscription plans due to changes in study requirements. Students can simply request to modify their plans, and the change will be reflected in their next payment cycle.  For recently established edtech businesses, UPI AutoPay can help improve the conversion rate of their customers by making plans significantly more affordable to students, and also ensuring that they stick around for longer durations. 

4. Financial services 

When it comes to making EMI payments for loans, insurance premiums, mutual fund SIPs, UPI AutoPay is simply the most convenient mode of payment out there because of the amount of trust that users have placed in UPI. Since missing due dates isn’t something that people can afford to do, UPI AutoPay ensures that they are always on track with their most important EMIs, while taking away all their worries and effort of doing so manually. UPI AutoPay ensures that all financial payments are made on time in a safe and secure manner, without the need for any paperwork, waiting in long queues, or the risk of penalties. 

5. Media and entertainment 

Subscriptions have always been abundantly in use when it comes to OTT platforms, publishing platforms, weekly newsletters or magazines. However, the greatest difference that UPI AutoPay makes is improving its reach. With UPI being widely accepted and used even in remote parts of India, such platforms have a mammoth opportunity to target these audiences and nudge them towards signing up for their subscriptions.

Their target audience pool need not be limited to enthusiasts who are always looking to sign up for OTT subscriptions but can also be expanded to potential users who aren’t exposed to the medium yet but are interested in exploring new forms of entertainment, and most importantly – trust UPI as a mode of payment. 

6. Healthcare 

The pandemic has reminded the whole world that we need to constantly monitor our health, get regular checkups done, and take all precautions to stay fit. With more and more healthtech startups being set up, doing so has become easier than ever. Most of such online healthcare startups offer valuable subscription plans so that people can avail diagnosis, consultation, fitness, or even mental health services at regular intervals as per their needs, thus offering convenience at their fingertips. 

UPI AutoPay as a payment method is a great way to ensure that such facilities are available to more and more Indians at inexpensive rates and in a hassle-free manner. People who wish to opt for recurring healthcare services without having to worry about payments every so often can opt for UPI AutoPay to pay their monthly subscriptions so they can focus on what matters most – their health. 

Related Read: What is UPI Lite? How Does it Work, and its Benefits

Banks and apps that are live on UPI AutoPay 

Since its launch, 37 banks and 3 apps are live on UPI AutoPay: 

What does the future look like for UPI AutoPay? 

UPI AutoPay is going to bring about a radical change in how small businesses operate by empowering them to retain customers with a one-time debit authorisation that allows them to charge users periodically. As more and more small businesses jump the UPI AutoPay bandwagon, they are likely to scale at a pace never seen before by reaching audiences that might not have been targeted previously. 

100 million monthly active users trust UPI as of 2021, and this number is projected to hit 500 million by 2025. With such promising growth numbers by its side, there is no doubt that UPI is here to transform digital payments for good. 

Let’s take a look at how the top banks and UPI apps performed in August 2021: 

Source: NPCI 

UPI AutoPay has made a revolutionary stride towards democratising digital payments by giving customers more control over their recurring payments and at the same time reducing their manual effort. Given the strong, loyal user base of UPI in India, we are more than confident that UPI AutoPay is not just here to stay, but also pivot how customers and businesses view subscription payments. 

Related Read: What are Payment Banks? Features & List of Payments Banks

Razorpay UPI AutoPay for subscriptions

The Razorpay Subscriptions engine powered UPI AutoPay is easy to integrate for businesses and offers multiple features that make it best-in-class. 

Inbuilt scheduler to track and manage subsequent debits, trigger pre-debit notifications, and send out invoices

Absolute flexibility to add a trial period, upfront amounts, or additional amounts in the middle of billing cycles 

  Option to modify subscriptions in case of upgrade or downgrades during the cycle 

Automatic retries in case of failed transactions to allow customers to change the authorised amount

Here’s what some of the fastest-growing brands in the country who’ve tried and tested Razorpay Subscriptions UPI AutoPay have to say about it:

We saw several NGOs, small businesses, as well as large corporations step forward to extend help to those fighting the deadly disease and their families in the form of readily available medicines, hospital beds, oxygen cylinders and concentrators, home-cooked meals, and financial aid. 

How Razorpay joined hands to help amplify Covid relief efforts 

At Razorpay, we were moved by the unwavering spirits and tremendous efforts of businesses and NGOs working tirelessly to help save lives. We wanted to help amplify their efforts and make them accessible to those in need as well as those who wanted to donate to their cause. 

To enable NGOs and corporations to collect donations via digital payments, Razorpay allowed them to quickly create relevant Payment Pages and start accepting donations in no time. We not only expedited the activation process for any new NGO that signed up for Razorpay payment pages but also ensured they could accept donations as seamlessly as possible. 

All NGOs and businesses using Razorpay Payment Pages to accept donations were eligible for: 

We created a publicly accessible Covid relief page that featured all verified Razorpay partner NGOs that were collecting donations at the time so that anyone who wished to donate could simply do so from that page. We encouraged businesses using Razorpay to help spread the word and urge their customers to donate to any of the NGOs looking for support by linking their customers to our Covid relief page once they completed a transaction on their platform. 

Very often, people want to support and help NGOs so they can continue their good work, but in unprecedented crises like these, they are not aware of how they can connect with organisations that need their support. With our initiative, we wanted to make sure that anyone capable and willing to donate to help Covid affected families should be able to do so without a second thought. 

How India came together to extend help to those in India

It was a difficult time for all Indians, to say the very least. However, it gave us hope to see the overwhelming support that our partners received in the form of donations in a short period of time. Razorpay’s Covid relief initiative was active from 30th April to 30th July 2021, and within a span of these 3 months, various not-for-profit organisations collected over Rs. 100 crore in the form of 6 lakh+ donations. 

Also, over 10,000 Razorpay partner businesses joined hands to help these organisations raise funds. Customers that made any successful purchase from such businesses were encouraged to make a donation to one of the Razorpay partnered NGOs via the Covid relief page.

The NGOs we partnered with extended help to fellow Indians by:

• Supplying critical life-saving equipment such as oxygen cylinders and concentrators, and inaccessible and expensive medicines to patients 
• Helping with access to hospital beds, ambulance services, medicines, and treatment to patients who weren’t able to get proper medical care or couldn’t afford it
• Providing PPE kits, masks, sanitisers, oximeters, steam inhalers, and other essentials to front line warriors and anybody else in need
• Offering ration to the daily wage workers who lost their source of income 
• Providing home-cooked meals to affected patients and families 
• Collecting funds to provide for a safe home, education, and food for orphaned children
• Gathering funds for families who lost their sole breadwinners so they could meet their short-term expenses 
• Offering mental health services to those undergoing emotional distress and trauma to promote overall well-being 

As we look back at those stressful days, we feel endlessly grateful towards our front line heroes as well as organisations and people who made it their lives’ mission to help India fight this mammoth catastrophe. While we are not completely out of the pandemic yet, we hope the situation continues to improve so we can all return to the old normal very soon. 

Businesses across the country were forced to pivot their operations and strategies in almost no time. Just like every other sector, digital payments wasn’t immune to the setback and witnessed a decline in the initial days of the pandemic. However, it was only a matter of time before businesses bounced back and evolved with the changing times. As businesses adapted to the new normal, they embraced online payments as a means to thrive in this era of digitisation. 

The last 250 days have been transformational for the digital payments ecosystem. From gaming to utilities, eCommerce to healthcare – each and every sector has shown growth during this period. This goes on to show how effortlessly Indian businesses have championed digital payments and are willing to go the extra mile to ascertain their place in the new world. With tier 2 and tier 3 businesses continuing to contribute 50% of the total transactions on Razorpay, we are in no doubt that they are ready to lead the fintech disruption in India. 

Digital payments have made it possible for up and coming freelancers and homepreneurs to turn their passions into businesses and scale their services from any part of the world. The D2C sector has achieved era-defining growth fuelled by digital payments, and we are confident that it is only going to amplify further. 

At Razorpay, we couldn’t be more excited to be a part of this incredible growth story and witness how India has collectively grown in the past 250 days. 

In the 9th edition of ‘The Era of Rising Fintech’ report, we bring to you a comparison of how digital payments fared in the first 250 days of the lockdown (March 25, 2020, to November 29, 2020) vs the next 250 days (November 30, 2020, to August 6, 2021). 

All findings in this report are based on transactions held on the Razorpay platform from March 25, 2020, to August 6, 2021.

The subscription-based model has slowly risen to become the holy grail among businesses who want to win over customers for the long haul by providing convenience at their fingertips. 

Up until a few years ago, subscriptions were predominantly limited to the media and entertainment industry. However, today, subscription businesses are just as prevalent in eCommerce, edtech, SaaS, and many more budding verticals. 

In fact, the top 5 sectors that made up 74% of all Razorpay subscription transactions in the last 6 months were the following:

However, offering a subscription product or service and collecting recurring payments isn’t as straightforward as it sounds. There are multiple unprecedented roadblocks or simply layers of complexities that subscription businesses need to be prepared for to provide a memorable experience and a hassle-free journey to their customers.

Let’s dissect some of those challenges and how subscription businesses can work their way around them.  

Offering multiple subscription billing models 

Since subscription plans are all about flexibility and catering to each and every customer’s unique needs, there is no one size fits all pricing model that you can opt for. Based on the nature of your business, there are multiple categories of billing models you need to consider so you can offer abundant choice and freedom to your customers. 

Freemium

• A subscription plan that allows customers to get started for free and pay when/if they wish to upgrade
• For example, a customer opts for a software tool that allows them to use it for free for the first 30 days, post which they will be billed

The SaaS behemoth, Zoho offers its customers a 30-day free trial before they have to pick a plan and start paying: 

Fixed schedule and pricing 

• Customers are charged a fixed amount at a fixed interval for a pre-decided quantity of product(s)
• For example, a customer opts for prescribed medicine to be delivered to them at the beginning of each month. Both the frequency and bill amount are fixed. Or, a non-profit organisation could offer fixed support plans for donors. 

Here’s an example of the fixed monthly and yearly support plans offered by The Wire – an independent, non-profit journalist organisation:

Fixed schedule and pricing + add-ons 

• Customers are billed at a pre-decided frequency. However, the billing amount varies depending on the additional goods/services opted for 
• For example, a customer subscribes to a hair care product to be delivered at the beginning of each month. But, this month, they change the quality required to 2 instead of 1 bottle, thus changing the billing amount 

Amazon makes it extremely easy to opt for such a subscription plan: 

Tiered/pay-per-unit pricing 

• Customers are charged based on the volume or quantity purchased as per the pre-defined tiers
• For example, a SaaS company could create tiers based on the number of users that sign up for the tool from a single account. 10-20 users ($10 each), 20-50 users ($8 each), 50+ users ($5 each)
• Similarly, eCommerce subscription businesses can also use this pricing model based on pre-decided brackets of product usage 

Here’s an example from RO renting company, Livpure Smart: 

Usage-based pricing

• Customers are charged for exactly what they use. No fixed billing amount, no tiers, no initial commitments 
• For example, cell phone subscription plans wherein users pay for the number of minutes consumed or texts sent, etc. 

The pay as you go pricing model that Twilio offers is an excellent example: 

The model you opt for will directly impact your revenue, so make sure you finalise the one best suited for your target audience, business requirements, and category. 

Offering flexibility and real-time modifications to subscription plans

Even after putting a whole lot of thought into selecting the right subscription plan, your customers might want to upgrade, downgrade, cancel, or change their plan a few days into their billing cycle. For example, soon after opting for a basic plan of an edtech platform, a student realises that the courses offered are quite helpful and hence decides to upgrade their plan to include mock tests and live exams. Now, they must be provided with the flexibility to upgrade their plan without having to wait for the next billing date. Otherwise, you not only end up with a frustrated customer but also leave money on the table. 

Moreover, if you also need to think about issuing refunds in case a customer downgrades their plan in the middle of their billing cycle. Customers are going to be impatient at this point, and you cannot keep them waiting or expect them to understand complicated messaging or navigate complex user flows. 

Real-time modifications to subscription plans are something you need to be prepared for by allowing customers to make adjustments to their ongoing plans as and when they wish to and having provision for prorated invoicing. All such changes need to be properly accounted for, communicated to the customer, and cause no hindrance to the overall user experience. 

Providing a seamless end-to-end customer experience 

Subscriptions offer convenience, but can also lead to poor customer experience if your:

• Communication lacks clarity
• Cancellations are not seamless
• Timely notifications aren’t sent out
• Billing details are not provided with transparency, and so on. 

Due to ever-increasing competition between subscription businesses, you can only stay ahead of the curve if you ensure that your customer experience is delightful and absolutely seamless. You don’t want to leave your customers in doubt, have them reach out to support over and over again to pause a subscription, not be reminded of their upcoming payment, or have no proper control and visibility into their subscription plans. 

The bottom line is that you must choose a subscriptions tool that manages the entire backend so smoothly that the customer journey on your platform is always commendable. 

Offering the right payment modes 

Cards, UPI, Net banking, International cards – there’s a whole range of payment methods that you need to consider and evaluate (based on your audience demographics) to zero in on the ones you need to offer to your subscription customers. Only then can you choose a subscription tool for your business depending upon whether it offers the payment methods you need. 

For example, if your target audience is based majorly out of tier 2 and tier 3 cities, you would want to consider UPI payments, since it is the most popular payment method in those parts of the country. On the other hand, if you own a SaaS business and your customers are based out of different parts of the world, you would need to have international cards as a payment option on your subscription plans. 

Sending out timely reminders and managing missed payments 

Once signed up for a subscription plan, your customers are more than likely to forget about it. Therefore, you need to ensure you are sending out timely payment reminders to customers well before their payment deadline, so they don’t miss out. They would also need to ensure that their linked bank account/card has enough funds for the payment well in advance. Even then, you can expect certain failed or missed transactions that you would need to track and manage. 

Allowing customers to pause and resume their plans 

Your customers might change their minds after opting for a plan or would want to put it on hold when not in use. You need to have a provision for pausing and resuming a subscription plan so that they don’t end up cancelling it in case the product or service is not required for some time. This would also allow you to reduce churn and increase your customer lifetime value. 

Providing enhancements or add-ons 

If at any point while using your product or services, if a customer wants to add enhancements to their existing plan, they should be able to do so without having to completely upgrade to a different one. You need to have the provision to modify the quantity of a certain product so that the customer can continue the same subscription plan instead of cancelling it and signing up for a new one.

For example, if a customer subscribes to a jar of coffee from your eCommerce store to be delivered to them in the second week of every month, you should have the provision to allow them to opt for 2 jars in a particular month instead of one without having to sign up for a whole new plan. 

Offering enticing discounts and promotions

Very often, you might want to make subscription plans available to your customers as a means of offering a discount on bulk or recurring purchases. However, there are tonnes of questions you need to ask yourself before creating and running an offer. Which or how many billing cycles would the offer run for? Will it be a limited time offer or an always-on one? Which cohort of customers will it be applicable for? Will it be a flat discount or a percentage of the billing amount? Will it be applicable on a specific payment mode or all of them?  Once you have clarity on each of these parameters, you can create offers for your subscription plans and leverage them to increase your sign up and retention figures. 

Take a look at how women wellness brand, Nua Woman offers discounts on their subscription plans: 

Generating automatic invoices

With great flexibility, comes great complexity! As subscriptions allow you to offer numerous customisation options, enhancements or add-ons, convenience to pause and resume a plan, choose payment frequencies and even upgrade or downgrade in the middle of a billing cycle, managing invoicing can be a challenge if you are just starting out.

Manual billing is completely out of the question as it is impossible to keep track and stay on top of so much data. You need to automate your billing system so that no invoices are generated and sent out to customers based on their chosen plan, usage, or tier on their respective due dates. 

Overcoming challenges and riding the subscriptions wave 

Sure, there are some added nuances to running subscription businesses and managing recurring payments. However, in the larger scheme of things, the benefits that subscriptions bring to the table are absolutely incomparable and game-changing, both for end consumers and businesses.

To make it big as a subscription business, think of the challenges we discussed above as merely tiny bumps in the road that you need to navigate through or a few checklist items that you need to ensure are in place. As long as you focus on optimising your user experience and improving your customer happiness and customer satisfaction, you are sure to give your competitors a run for their money.

If you are confused about picking the right subscriptions tool, you needn’t look any further. Razorpay Subscriptions is a robust tool that provides you with the complete flexibility of offering a delightful experience to your end customers. Whether it is pausing and resuming their plans as per their requirements, upgrading and downgrading plans, choosing from a range of payment methods, or opting for enhancements, your customers can do it all and more seamlessly.

Razorpay Subscriptions is designed to tackle all challenges discussed above and many more that might arise so you can direct all your efforts towards growing and scaling your business. 

At Razorpay, we’ve been on a mission to empower the Indian subscription economy. However, up until now, we had only been solving for businesses and end customers. As part of our aim to build an end-to-end recurring payments stack for India, we have now created a solution for banks that allows them to enable recurring payments for their customers while complying with RBI’s directive and guidelines around doing so. 

The RBI has announced a set of guidelines for banks on the collection of recurring payments on cards, with an aim to make them more secure and transparent. To that end, Razorpay has partnered with Mastercard to create a solution called MandateHQ that helps banks comply with these guidelines and facilitate subscription payments. 

What is MandateHQ? 

MandateHQ is an API-based, plug-n-play recurring payments interface that allows banks to seamlessly enable recurring payments on cards following the new RBI guidelines. The reason the solution is named so is that the term “mandate” refers to the standing instructions given to a bank to process recurring payments and HQ is short for headquarters, which essentially represents that MandateHQ is a one-stop solution that helps in managing the entire card-based mandate lifecycles.

Banks don’t have to worry about building a completely new solution from scratch to enable recurring payments on cards. Instead, they can simply integrate MandateHQ into their existing payments infrastructure and quickly go live.

We have already partnered with India’s three leading banks and are in talks with 20 other banks to help integrate this technology into their existing payment infrastructure in the coming weeks. 

Here’s a look at the new RBI guidelines that MandateHQ helps comply with: 

RBI’s directive on recurring card payments 

These regulations are applicable for all issuing banks, to process mandates on credit cards, debit cards, and other prepaid instruments, and have come into effect on 1st April 2021. The deadline to comply with the said guidelines is 30th September 2021. 

As per the RBI guidelines: 

• Cardholders need to authorise through OTP (technically known as Additional Factor Authentication) while signing up for an auto-debit facility with any website or service provider
• Banks must send cardholders a pre-debit notification at least 24 hours before the actual debit with an option to cancel/pause the auto-debit
• Banks must provide an online facility for the cardholder to cancel/pause/ manage auto-debits signed up using the card
• Banks must send post debit notification to the cardholder once the auto-debit is processed
• For auto-debits greater than Rs.5,000, banks need to ensure that customers are provided with an OTP to approve every such auto-debit 
• Banks should set up a redressal system to address customers’ grievances

Related Read: What is Recurring Billing? – Types, Advantages, and Examples

How does MandateHQ help banks? 

MandateHQ is built with an aim to enable banks to manage complete subscription lifecycles from a centralised dashboard. Once integrated, banks will be able to: 

• Comply with RBI’s directive without making any infrastructural changes 
• Have access to an admin dashboard which they can customise as per roles and permissions
• View detailed and customised reports on mandates and customer actions. 

How does MandateHQ help your business? 

Owing to the convenience, features, state-of-the-art interface, and seamless user experience that MandateHQ offers, your customers can opt for subscriptions more easily now. 

This is an opportunity for businesses like yours to build trust and credibility among potential customers who might have been apprehensive about signing up for subscription products or services. 

Today, we have 900 million debit cards in India (projected at 40% YoY growth), which makes them far more popular than credit cards (especially in Tier 2 and Tier 3 cities). However, up until now, very few banks offered recurring payments for debit cards. But upon integration with MandateHQ, banks can start opening up this option for debit cardholders as well, given the convenience and added level of security that it promises. 

It is a massive opportunity for businesses like yours to make your subscription products and services available to a wider audience. Businesses can now reach untapped geographies and make recurring digital payments more accessible to customers from non-metro cities too. 

How does MandateHQ help your end customers? 

RBI’s guidelines are a huge step towards making recurring payments safer and more convenient for consumers. With MandateHQ, customers will be able to:

• Receive pre and post debit notifications for all recurring card payments 
• Have a unique customer account that facilitates multi-factor authentication
• Control and manage their subscriptions better and have increased visibility into their recurring payments
• Have access to a self-serve portal to view and manage (pause/resume/cancel) mandates across all apps/ service providers 

MandateHQ has powered the following banks to comply with the RBI guidelines. Cardholders of these banks can use their cards to sign up for auto-debits/ standing instructions.

1. HSBC
2. Equitas Small Finance Bank
3. OneCard
4. Karur Vysya Bank

In the coming weeks, the following banks will also be going live with MandateHQ to comply with the RBI guidelines.

1. SBI
2. ICICI Bank
3. Axis Bank
4. HDFC Bank
5. YES Bank
6. RBL

The way forward 

From being dominated by the media and entertainment industry to being prevalent in almost all types of online businesses, subscriptions have come a long way. At Razorpay, we are confident that the future for the subscription economy in India is brighter than ever, and we are excited to be a part of this promising growth journey. We are positive that the adoption of MandateHQ will nurture our collective vision of taking the subscription economy to greater heights by making recurring transactions more secure and transparent. 

Also, regardless of the nature of one’s business, most teams today are virtual and distributed owing to the pandemic. Thus, it’s all the more important for you and your teams to stay connected and have access to information, in-depth insights, and approvals while on the go. 

At Razorpay, we’ve made it even more effortless for you to track and manage digital payments for your business from the palm of your hand. 

Meet the Razorpay Mobile App. 

With our mobile app, you can sign up for Razorpay, complete the activation process within minutes, and get started with accepting payments using Payment Links. Once onboard, you can access your Razorpay dashboard in seconds and track, manage, view transactions while on the go. You get to stay on top of every transaction by viewing it in real-time, so you don’t miss out on important updates. 

You get to now manage payments for your business from the comfort of your smartphone. So, no matter how busy you are, accepting and tracking payments, receiving settlements, accessing detailed insights or reports, or fetching updates on successful/failed transactions is no longer a tedious task. 

Why you need the Razorpay Mobile App

The Razorpay Mobile App is built for the futuristic, tireless business owner who’s all about efficiency and needs to be able to run their business using a smartphone. Here are some of the major reasons you should consider signing up for the Razorpay Payments Mobile App: 

Seamless onboarding with minimal documentation 

With the Razorpay Payments Mobile App, you are promised a hassle-free onboarding experience that involves minimal documentation. All you need to do is provide your contact and bank information and business details, and upload your KYC documents, and voila! You are ready to start accepting payments. 

Here’s a step by step guide on how you can sign up for a Razorpay account or access your existing one via the Razorpay Payments Mobile App. 

Manage all transactions from a real-time dashboard via your smartphone 

The mobile app allows you to access the robust Razorpay dashboard, which is updated on a regular basis. It enables you to view transactions, analyse earnings, track sales, and much more. Managing the entire payments lifecycle for your customers and business anytime, anywhere, was never this convenient. Every possible action you need to take to facilitate or manage payments is now available at the tap of a button via our mobile app.

Accept payments while on the go with Payment Links 

With our mobile app, you can create and share payment links with your customers via email, WhatsApp, SMS or any other social channel in real-time. It’s really that simple. By simply entering customers’ mobile number and/or email id, you can create a payment link at the click of a button, set the expiry date, and share it with them. Since this won’t take you more than a few seconds, you can do it in the middle of any other task, even on your busiest day. You can also allow your customers to make partial payments against large orders or advance payments with Payment Links. 

Moreover, you don’t even need a website or app to accept payments via links. You can simply create links from the Razorpay app and share them with customers via messaging channels. 

Avoid delays by issuing refunds instantly 

By always having access to your Razorpay dashboard, you can monitor captured payments, successful payments, failed payments etc., in real-time and take the required actions immediately. For example, as soon as you get to know about a failed transaction, you can issue the refund instantly, with a single click. This helps you drastically improve the user experience and reduce customer complaints pertaining to failed transactions. 

Instant access to detailed payment insights 

Using the mobile app, you can get access to analytics and insights to monitor your business health and goals, and ensure you stay on top of them. By analysing sales and business earnings over a particular period, you can keep a track of your short-term and long-term goals, from wherever you are. 

The Razorpay Mobile App is ideal for you if: 

You own a small business 

As someone responsible for managing digital payments for your company, you constantly need to stay on top of the transactions being made, payment links to be sent out, and refunds to be issued, even when you don’t have access to a computer. And such requirements can come at any time of the day, no matter where you are. The Razorpay Mobile App ensures you can track payments, review payment links, issue instant refunds, conveniently from your smartphone, while on the go. Also, if in any case, your team sends out payment links with the incorrect amount or details, you can cancel it or if the payment has failed, you can go ahead and issue the refund. 

You hold a leadership position at an organisation 

As a manager at an organisation, you need complete visibility into the health of your business at all times. From tracking payments received and monitoring chargebacks and settlements to analysing business goals and performance, you can do it all using the Razorpay Mobile App. 

You are a solopreneur, freelancer, or a self-employed professional 

As most of the client payments you receive are based on the scope of work, differ from project to project or order to order, collecting payments is almost like an ongoing task that you need to be on your toes for. As an entrepreneur or self-employed individual, you probably have your hands full at all times as you multitask your way through the day. And collecting payments is not something you should have to worry about. 

Whether you need to receive payments for custom orders or accept advance or partial payment for your work, you can do it all by creating and sharing payment links yourself using the Razorpay Mobile App, while managing other aspects of your business. 

In conclusion

With the Razorpay Mobile App, managing and tracking digital payments is going to be a breeze. No matter where you are and what time of the day it is, your intuitive Razorpay dashboard is only a single tap away. Accepting payments is far more accessible and convenient than it has ever been, and we cannot wait for you to try it out and experience it for yourself.

Even if you have an aggressive strategy in place, executing it requires access to a not-so-secret ingredient – working capital. Since customer payments are the most important source of working capital for small businesses, accessing them should be as seamless as possible. 

The birth of digital payments transformed how businesses had traditionally operated by making payment collection more transparent, convenient, and secure. However, come to think of it, digital payments have actually made it slower for business owners to access their revenue. As compared to cash transactions, which give business owners instant access to their money, digital transactions take 2-5 days to settle and reach the owner’s bank account. This often leads to working capital constraints, especially for small or new businesses. 

Well, not anymore. 

At Razorpay, we wanted to make your digital payments immediately accessible to you so you don’t have to face working capital constraints anymore. 

With Razorpay Instant Settlements, you can receive digital payment settlements in your account within 10 seconds at any time of the day, even on bank holidays. You can now transfer the payments made on your site to your bank account in real-time, so you can immediately reinvest it in your business and use it to unlock growth opportunities.

You no longer have to worry about shortage of working capital as you get access to regular cash flow that can constantly fuel growth for your business. 

How Razorpay Instant Settlements can be a game-changer for your online business

With reduced payment settlement cycles, you can run your business with far more convenience and flexibility and take it to greater heights. Here’s how: 

Pay bills and creditors in due time owing to increased liquidity 

It’s always dreadful to see vendor invoices and bills piling up, eagerly waiting to be cleared. With Razorpay Instant Settlements, you will never be short on working capital to pay bills, creditors, and vendors as and when you need to. With a reliable source of cash flow, you can plan and manage your expenses better and pay dues well in time, without having to wait for days for payments to be settled so you can access your money. 

Gain access to working capital to invest in business growth 

As a business owner in today’s day and age, a significant part of your day goes into strategising for growth. Imagine how you can fast-track your growth journey if you have regular access to working capital. Whether it is expanding your online presence, diversifying your inventory, exploring untapped markets, or conducting thorough user research, a regular inflow of cash will ensure your plans do not get bottlenecked because of lack of cash. You can rely on instant settlements to maintain a streamlined and systematic revenue cycle that is required for smoothly running and scaling your business. 

Regularly update your inventory 

With instant access to your customer payments from day 1 of signing up with Razorpay, you can always use the money to restock your inventory more frequently and regularly. You can ensure that your shelves are fully stocked at all times, and no customer leaves due to not finding the desired product. You no longer have to wait for days to get access to your own money to be able to use it to keep your product catalogue up to date. 

Affordable pricing that wouldn’t hurt your budget 

Since instant settlements is built with the aim to empower small businesses, affordability is one of the key aspects of the solution. With pricing starting at 0.3% and decreasing with more usage, we’ve ensured you that opting for instant settlements doesn’t hurt your pocket. 

Razorpay Instant Settlements is ideal for you if: 

You own a bootstrapped business

For bootstrapped businesses, cash flow uncertainties and budget constraints are very common as there isn’t any investor money to rely on for day to day operations or growth plans. However, with Instant Settlements, those challenges can be done away with.

With a consistent and credible source of revenue, you can rest assured that you will always have access to working capital for operational requirements and to unlock unanticipated growth opportunities. 

You are just starting out

Getting started can be extremely daunting, regardless of the industry you are operating in or the nature of your business. Not being sure of the entire payments lifecycle or not having access to cash when you need it the most only makes things worse. With instant settlements, we are here to take care of that challenge by providing real-time access to your customer payments.

No more waiting to receive settlements so you can use the money to invest in stabilising your business. You can immediately access your hard-earned revenue and put it to work. Therefore, if setting up your own online business is something you have been holding off, you don’t have to anymore. You can rely on Razorpay Instant Settlements to keep monetary crises at bay while you are busy making a place for yourself in this competitive market. 

You are planning to take your business online 

If going online is something you have been considering for a long, now is the time to take the plunge. With Razorpay Instant Settlements, liquidity isn’t going to be an issue as you can access your customer payments within seconds.

Digital payments are now as good as cash with instant settlements, no matter which payment mode your customers opt for. With the fastest payment gateway at your disposal, setting up your online business isn’t something you need to think twice about, as you don’t need to rely on an investor for working capital for your regular expenses. 

How to get started with Razorpay Instant Settlements 

Once you have signed up for Razorpay, submitted all the KYC documents, and completed the activation process, you are all set to start collecting digital payments on your site or app. 

To get instant settlements for your payments: 

• Click on the Settlements tab on your Razorpay dashboard
• Click on Settle Now button which you will find in the top right corner of the dashboard
• Enter the amount you wish to receive immediately and click on Confirm

To sum up

Instant settlements can provide a huge boost in helping supercharge growth for your business by ensuring you always have cash in hand to allocate resources towards important activities. You can settle operational expenses in time, replenish your inventory, expand your short term marketing budget, and so much more, with consistent access to working capital. Get started with Razorpay today and bid adieu to cash crunch for good. 

In 2011, Mandar decided it was finally time to quit his IT job and fulfil his long-cherished dream of building a career in art. He organised his first full-blown workshop in the same year. Very soon, he started gaining attention from aspiring artists across the globe. Mandar then went on to record his first course for the world’s most popular e-learning platform, Udemy.

Today, Mandar’s website hosts 37+ beginner and intermediate level courses that students can take up from any part of the world. Some of the most common ones include drawing, watercolour painting, oil painting, acrylic painting, and Ganapati idol making. 

So, what was the challenge?  

More than 90% of Mandar’s students are either working professionals, homemakers, or retired people from tier 1 and 2 cities who are passionate about art. Mandar’s live and recorded courses have made learning art accessible to everyone. 

But, up until recently, Mandar’s students were not able to use their preferred payment mode to pay the required fees and sign up for the workshops and courses hosted on his website. This was because Mandar was using another digital payments solution, which only accepted payments via debit or credit cards. However, just like the majority of the Indian population, Mandar’s students too preferred UPI over other payment modes. Thus, Mandar was repeatedly losing out on bookings as students would drop off due to the unavailability of their preferred payment mode.  

Personalised online courses became unimaginably popular during the pandemic, especially those created by dedicated artists such as Mandar. However, due to the lack of a robust online payments solution, Mandar was unable to reach his desired target audience, which severely impacted his business and revenue. Moreover, this led to a broken user experience on his site, and he noticed a significant drop in customer happiness as well. 

Mandar turned to Razorpay Payment Button to accept fee payments 

Being a one-person army, Mandar needed a payment solution that was easy to integrate and go live, so he could do it all by himself. He was also looking for one that offered a great range of payment modes, so his students always had a choice. 

Here’s how Razorpay Payment Button helped Mandar streamline payments on his online platform: 

Mandar went live on his own

Mandar found Razorpay Payment Button to be a handy solution that offered a no-code, do-it-yourself way to collect payments on his website. He embedded the Payment Button on his online portal within minutes and started collecting fees through multiple payment methods, including the most requested – UPI, with an integrated checkout from his website. 

He conducted  25+ live online workshops

Up until the pandemic hit, Mandar had conducted face to face workshops in his studio for more than 8 years. Once that got disrupted, he moved his classes online and started offering both recorded and live courses through his website. Between April 2020 and March 2021, Mandar conducted more than 25 online live workshops that people across time zones could attend together. 

Razorpay Payment Button allowed him to make the digital transition seamlessly, without having to worry about accepting and managing payments. 

He offered a wide range of payment modes

Since Mandar’s typical class profile consisted of adults from different corners of the country, you’d expect everyone to have their own preferred mode of online payment. Razorpay Payment Button allowed Mandar to accept his course fee in all of those commonly preferred modes. This ensured lack of enough payment options was never a concern for students signing up for Mandar’s courses online. 

He taught students from all over the world

Due to the popularity of his courses, many students from other countries also showed interest in attending Mandar’s live workshops. He could now teach students from any part of the world as Razorpay Payment Button allowed him to accept payments in more than 100 currencies. 

Today, Mandar mentors a large number of aspiring and passionate painters, illustrators, and sculptors via online courses and workshops. He has inspired over 20,000 students across 119 countries.