Digital payments firm Razorpay CEO and co-founder Harshil Mathur on Tuesday said the fintech is one of the sectors where India is way ahead and matured that other markets in the world. The significant growth in digital payments in India over the past 7-10 years has been impressive and noteworthy.
"In fintech, India has established a lead and it is way ahead than many markets. The growth in last 7 to 10 years has been mind blogging. When I tell people at global stage that 50% of real-time payments is happening in India, it is hard for them to believe. Even today in most markets, real-time payment and settling payments on the spot are something unheard. We do this on daily basis," Mehta said.
UPI (Unified Payments Interface), which was introduced in 2016 by the National Payments Corporation of India (NPCI), allows users to easily make payments and transfer money between accounts using a smartphone.
In discussing India's dominance in the UPI sector, Mathur noted that while the US is attempting to develop a comparable real-time system, it falls short in comparison to India's UPI system. Other countries such as Thailand with PromptPay and Malaysia with Paynet have systems that closely resemble India's UPI, yet they lack the widespread adoption that India has achieved.
Mathur said: "Though the US is trying to build a similar real-time system, but not even closer to ours. Thailand has launched PromptPay, and Malaysia has its Paynet. And if you look at them, they look exactly the same as our UPI system, but still, they don't have as much penetration as we have."
Talking about Razorpay's comeback plans to India, Mathur said: "10 years back, it was hard for foreign investors to put their money in India or India-structured company as they didn't understand the regulations, complicacies of the market. Besides, there was no other public tech market in India. However, in the last 3-4 years, that sentiments have completely changed. India is now one of the best markets for IPOs. There are many success stories in the last few years plus there are visible efforts of the government where they have simplified the ease of doing business. Also, there is a trust in the regulations, legal systems and policy continuity in India that's a big driver."
Razorpay is a financial platform that simplifies transactions by offering a user-friendly payment gateway for businesses and merchants. It enables online payments through credit cards, debit cards, net banking, UPI, and digital wallets, and charges a minimal transaction fee of 2-3%. The platform also supports popular Indian wallets like JioMoney, Mobikwik, Airtel Money, Freecharge, OlaMoney, and PayZapp.
The decision sets the stage for Razorpay to potentially become a publicly-traded company by 2026. Despite facing substantial tax implications estimated at around $300 million, Razorpay has begun the process of restructuring its corporate setup. This move is seen by industry experts as a strategic step towards its anticipated IPO. As part of the process, the company is currently awaiting approval from the RBI, which is expected to streamline procedures and alleviate the burden on the NCLT.