Technology Note On
Razorpay
Indian Institute of Management – Tiruchirappalli
By Group 01, PGPM 2023-25, Section A
2301003- AKHIL ANTONY | 2301004-ALLU BRINDA | 2301010- ASHWIN P |
2301041- RAJITHA PATHLAVATH | 2301063- SREEGOWTHAM S | 2301064- SUBHAM
SAHOO | 2301065- THOTA AMULYA | 2301072 - SANKA CH V NARAYANA SAMERAJ
Table of Contents
Introduction.........................................................................................................3
Value Creation......................................................................................................4
Value Capture:.................................................................................................5
Challenges in deployment........................................................................................6
Opportunities.......................................................................................................6
Technological Changes:..........................................................................................7
Organization Changes:............................................................................................7
References..........................................................................................................8
Introduction
RazorPay - The journey began with a rather
uncomplicated concept - enhancing the payment
process for small and medium enterprises as well as
startups. Within a span of fewer than six years, this
organization has emerged as the fifth fintech unicorn
startup in India, joining the ranks of Paytm and
Zerodha, with a valuation exceeding USD 1 billion.
This remarkable achievement can be attributed to their
unwavering dedication to resolving consumer issues,
persistent drive for innovation, and strategic
adaptability. Consequently, they have established
themselves as a prominent entity in the payments industry, surpassing their competitors, and
securing the title of the fastest-growing fintech company to attain unicorn status.
Financial Reports:
Value Captured in terms of financial data over past years.
Value Chain of Company:
Value Creation
Working Strategy
Payment Variety: Razorpay provides a wide
range of payment options beyond just credit
and debit cards. Users can choose from Net
Banking, UPI, and various e-wallets like Jio
Money, Mobikwik, Airtel Money, and more.
Product Diversity: RAZORPAYX PAYROLL
for managing employee salaries and
RAZORPAY GOLD for facilitating gold
purchases are just a few examples of the
diverse products offered by the brand to
streamline business transactions.
Customer-Centric Approach: The platform is
deliberately designed to be user-friendly and
seamlessly integrated into business websites or
applications. Customizable checkout
experiences, detailed analytics, and valuable
insights are among the standout features of the
platform.
Security: Razorpay ensures the highest level
of security as it is compliant with PCI DSS
Level 1 standards. This compliance guarantees
the protection of sensitive financial information, instilling trust among both clients and
customers.
Overall, Razorpay stands out in all three
dimensions of the Digitization Cube. It
engages with customers digitally,
digitizes its core operations for efficient
payment processing, and transforms the
traditional business model of payment
services through innovative digital
solutions.
Value Capture:
Challenges in deployment
Regulatory challenges: whenever a new product or service is released, they had to
comply with relevant regulations and standards given by regulatory authorities like RBI
and the NPCI- National Payments Corporation of India.
Increasing threat of new methods for cybercrime: It has suffered a cyberattack that
persisted for three months in 2022 due to payment authorization vulnerabilities. The
broader market is at risk in API enablement, which is expected to be the gateway of 50%
of data threats by 2025.
Cost of technology adoption: Investment in new-age tech will need serious capital
expenditure, and this can affect the bottom line of the company.
Compatibility with partner bank’s networks and servers: Since Razorpay is a
payment aggregator, they have to link their services with the bank's servers and network
in order to process payments successfully.
Example of how Razorpay faced its challenges:
Opportunities
Better tie-ups with the technological side of banks who are one of the important members in
the razorpay value chain, can lead to better adoption of new-age technology so that the whole
ecosystem is upgraded as per the latest trend and regulations, and this will, in turn, enable
more value creation to customers.
Adopting contactless payment solutions that leverage NFC technology can provide a safer
and more hygienic payment experience, which customers are currently leaning towards with
the history of COVID-19.
Diversification of Services using emerging technologies, making it a one-stop solution for
businesses.
Company can improve the open-source API coding for developers further such that
technologies on which financial services can be adopted with minimal investment. We can
also provide tech competitions from which we can adopt innovative solutions proposed by
students.
Technological Changes:
Enhanced adoption of Blockchain technology: It can provide faster cross-border payment
service, secure payment transactions and smart contracts, offer transparency and
accountability to customers, and reduce transaction fees and settlement times.
Big Data: It can help Razorpay in customer segmentation & targeting, Fraud detection, and
predictive analytics for risk management and compliance.
Leverage AI in its products: like using a chatbot to guide customers for all solutions
regarding the payment process, payroll, and vendor payments. It can also be offered in
different regional languages to cater to wide customers.
Robust Open-source API Interface integration: It can help resolve compatibility issues.
Organization Changes:
1. The product team at razorpay is organized such that there are three product vice-
presidents reporting to the CTO. The VPs lead multiple product teams with 6-15
members. There is a team each for cards, UPI, net banking and refunds, etc. under the
payments vertical. As the company’s product lines are increasing, they can consider
adding another product vice president to consolidate the teams and scale up the
organization.
2. Product Managers (PMs) are instrumental in the development and delivery of successful
products. To ensure efficient product development, PMs can adopt a methodical
approach, which is creating a Product Requirements Document (PRD), whose main
components are:
Concept Note
User Stories
References
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eshan-agrawal/
[Link]
help-razorpay-improve-business-outcomes/74073978