Razorpay is likely to submit its system audit report to the Reserve Bank of India (RBI) by the end of this week, a company spokesperson said. “When we are converting to a full-licence from an in-principle licence, we have to submit a system audit report to get the full licence,” the spokesperson said.
“As part of the submission of that report, we have to confirm that we have done the migration activity to start operating as a fully-licensed entity and we have to submit proof of that. So, we have to pause on-boarding new online merchants till the migration activity is completed,” the spokesperson said.
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Last week, the RBI had asked Razorpay to pause on-boarding new customers for its payment processing business. The central bank had issued the same directive to Cashfree.
Nevertheless, the central bank’s directive does not effect Razorpay’s existing business operations and current merchants. It can continue to on-board new merchants on business banking platforms – RazorpayX and Razorpay Capital – and also enable offline payments through the Ezetap platform.
In July, the Bengaluru-based payment gateway received an in-principle approval from the RBI for a payment aggregator licence.
Also Read: RBI asks Razorpay to pause onboarding merchants
The company expects its transaction volumes jump 60-70% in 2023. “We set our goal to hit $70-80 billion in total payment volume in 2022 and we have already done that. We are on track to grow at more than 60% on transaction volume,” said Harshil Mathur, co-founder and chief executive officer of Razorpay. Currently, the company’s transaction volume is more than $80 billion on an annualised basis.
The company is planing to launch operations in Malaysia in early 2024. In February, it had announced the acquisition of Malaysian financial technology company Curlec. “A lot of India’s local instruments like UPI are going cross border. While our stacks are going global, I think it creates a strong opportunity for Indian companies to also go global. I think that is one area that we are working on with our launch in Malaysia,” Mathur said.
Earlier this month, Razorpay became the first payment gateway to support credit cards on the Unified Payments Interface (UPI). This came after the RBI’s earlier announcement that RuPay credit cards would be linked to the UPI platform through the BHIM mobile payments application. Other applications such as Google Pay and PhonePe will also be linked in coming months.
“Merchants have been looking forward to this (credit cards on UPI) post the announcement by the regulator. I think this was something that everyone has been very excited about, both in the online and the offline space. The reception has so far been very good, but it is still early days,” Khilan Haria, head of payment products at Razorpay, said.