Razorpay has announced the launch of Instant Refunds on UPI transactions by Razorpay POS. The solution will allow merchants to provide a more seamless in-store payment experience to their customers by providing instant refunds for failed UPI transactions within 2 minutes, resulting in faster checkouts.
UPI payments have rapidly emerged as the norm for digital payment acceptance in India. According to the National Payments Corporation of India (NPCI), in 2023, UPI platform transactions exceeded the 100 Billion mark, reaching around 118 Billion, marking a remarkable 60% growth from the previous year’s 74 billion.
However, businesses are actively seeking solutions to address issues, particularly concerning delayed transactions made via POS devices. These delays result in a negative customer experience, leading to potential losses for merchants, a release by Razorpay stated.
“When transactions are delayed, and funds are debited from the consumer’s account but not received by the merchant, customers hesitate to retry the payment or opt for an alternative method, often abandoning the purchase. This not only hampers the consumer experience, causing confusion and frustration but also raises operational costs for merchants, impacting their overall business,” the release stated.
As per the information, using Razorpay POS device’s fully automated system, the refund process will now take a maximum of 2 minutes. “The process involves a swift attempt within 3 seconds, concluding if successful. In case of failure, the system persistently attempts thrice, each attempt spaced 5 seconds apart, sparing a merchant’s manual efforts altogether,” Razorpay stated.