The e-commerce industry in India has really taken off in the past few years, but with that growth has come to its share of headaches for online merchants. One of the biggest issues is accepting payments, as many websites and online stores struggle to find reliable payment gateways that aren’t too expensive, don’t take forever to get set up, and are simple to use and manage. Razorpay aims to make all of this much easier by providing an affordable, easy-to-use payment gateway that can be integrated with most shopping carts on the market today.
What is a Payment Gateway?
A payment gateway is a company or website that links your customers to your account for processing payments, including credit cards, debit cards, Wallet, and bank account transfers. The most popular method is Razorpay. Payment Gateways allow you to store customers’ credit card information, which is then forwarded to a processor who processes payments based on whatever pricing structure they have in place with their merchant accounts (i.e., banks). This can all be done automatically and easily, as it’s just another button at checkout. For more complex transactions, you can connect third-party applications like Shopify Payments or Recurly – but these aren’t free!
Why should you use it if you are a business owner?
Using a payment gateway when you start out can often be beneficial because it will be easier to get your customer’s credit card information in an encrypted form. Most people try to be wary of giving out their credit card information over email, but Razorpay has a lot of great features that make collecting payments as easy as sending an email. For example, if you are already using Stripe or another platform for accepting payments through websites, then setting up a similar system on your website shouldn’t take too much time at all! Furthermore, what differentiates Razorpay from most gateways is that it does not require fees upfront – so if you have been looking for a more affordable solution for collecting online payments, then look no further.
How does it affect your business profitability?
Every small business owner knows how important it is to charge customers fair and reasonable prices. Once a customer leaves, it can be difficult to get them back. So, knowing which payment gateway will benefit your business’s profitability most is essential when making your decision. Of course, every situation and type of business is different. That’s why you need to consider these five factors: Speed: Whether you have very few customers or multiple sales happening at once, speed matters. The more complicated or lengthy a transaction takes, the less likely it will happen again in future transactions with that customer; if they are willing to wait minutes for their service or product delivery just once, they may not be willing to do so in future orders.
How does Razorpay stack up against them?
Today, more and more businesses are migrating to online-only models. As a result, they need to find some way of accepting payments online. This has led to a surge in payment gateway providers. There are literally dozens of such companies that provide you with software allowing you to accept online payments. That’s great for users as competition always means better services at lower costs. However, it also poses an information overload problem for entrepreneurs wanting to know which one of these services is best for them specifically.
How to sign up for Razorpay, and get started with it on your website?
If you’re looking to accept online payments, you have many options. PayPal, Stripe, Braintree, and Square are just a few of them. But in my opinion, one company stands above them all: Razorpay. At its core, Razorpay works much like any other payment gateway; it stores your customer’s card information, processes their credit or debit card payments, and then transfers that money into your bank account. The difference is that more and more businesses are choosing to use PayPal for e-commerce transactions because it already comes built into millions of websites around the world.
How to create an account on Razorpay Payment Gateway?
This was my first time trying out Razorpay and I found that it’s very easy to create an account. You can create your account online using their website. To do so, you need to click on Sign up now which is displayed prominently at the top of their home page. As you scroll down, a section dedicated to new users will be presented where you can select a plan as well as fill in details about your business.
1. Click on the Signup Button.
2. Fill in the details
3. Verify Email Address
4. After that submit the required document
5. In 2-3 Working days your account will be Activated
Razorpay Pros
Not only does Razorpay have an incredible user interface, but it also comes with plenty of features and capabilities. Because of its advanced security system, for example, you don’t have to worry about fraudulent payments. Also, its detailed reports let you know how much each customer spends on average so that you can create effective marketing strategies based on their buying habits. Finally, because it integrates seamlessly with Shopify and your other favorite platforms—as well as a host of developer-friendly APIs—you won’t have any issues getting up and running quickly.
Transactional Charge on Razorpay
One of Razorpay’s major USPs (unique selling proposition) lies in its low transactional charges. On every transaction, a merchant can have only a 1% charge irrespective of whether it’s an offline or online store. It works on a Pay-Per-Transact model and hence you pay only for actual transactions and nothing else. Many companies levy high annual or monthly fees to set up their gateway services. However, Razorpay doesn’t charge anything extra from its customers and thus lowers down its overall costs, thereby allowing them to pass on discounts onto its customers as well.
Conclusion
There are a lot of payment gateways in India and almost all of them advertise themselves as best in class. While that may be true, what you need to consider before signing up with any of them is their long-term business model. In my opinion, none of these companies have a long-term business model except for Razorpay. If you go through their case study, they have partnered with bigger companies like Flipkart and Paytm (not sure why PayUmoney is not included). They also have CCAvenue under their belt. These partnerships will increase their network presence in India which will lead to big things in the near future. They charge lesser than any other gateway providers but do not compromise on Quality of Service at all! Hats off to them!
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