The Razorpay payments Matrix: Can this Neo bank be The One?

Razorpay is developing a payments matrix. To reinvent itself as a market leader of payment gateways by 2020 with a 450% growth. And so, it has styled itself a neo bank, in anticipation of a pay off

Razorpay says it is poised to be the market leader in processing payments from internet commerce based companies

But the payment gateway business is becoming increasingly commoditised

Razorpay is now seeing payment gateway only as a customer acquisition business

To retain customers, it wants to become a neo bank by opening smart current accounts for its merchants

“We are growing at 450% year-on-year and we should be market leaders in 15 months,” says Harshil Mathur, the 28-year-old CEO and co-founder of payment gateway Razorpay* Software Pvt Ltd. The fast-talking, straight-faced founder makes two eye-popping claims—about its projected growth and its market leader dreams—right there.

For a five-year-old startup in any sector, annual growth of 450% would be considered extraordinary. But payments is a bit of an anomaly. Over a billion transactions happen a day in India, and they have seen blazing growth. Almost 70% year-on-year. And the transaction turnover is expected to contribute nearly 15% of GDP by 2021, from the current 10%, according to the RBI’s latest vision document for payments.

AUTHOR

Arundhati Ramanathan

Arundhati is Bengaluru-based. She is interested in how people use money in the digital age and how new economies will take shape based on that interaction. She has spent over 10 years reporting and writing on various subjects. Previous stints were at Mint, Outlook Business and Reuters.

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