Razorpay partners Mastercard to launch MandateHQ for recurring payments
Bengaluru-based fintech startup Razorpay has partnered with Mastercard to launch MandateHQ, a new recurring payment interface, in accordance with the Reserve Bank of India’s (RBI) new guidelines.
September 30 new deadline to implement rules for recurring online payments (techcircle.in)
The RBI has extended the deadline till September 30 for banks to comply with the new rules, which include giving customers a consent notification every time the recurring payment is debited as well as a provision to opt out.
It has made Additional Factor of Authentication (AFA) mandatory for all recurring transactions below Rs 5,000 on debit cards, credit cards, even UPI and other Prepaid Payment Instruments (PPIs).
Razorpay’s MandateHQ is an API-based plug-n-play solution that reduces the go-live time for any card issuing bank that wishes to enable recurring payments for its customers, the company statement said.
Razorpay’s MandateHQ solution can be fully integrated with any bank within 7 days, as opposed to other solutions which normally take a few weeks, the statement added.
Currently, BillDesk provides a similar service in partnership with Visa.
In addition to its association with Mastercard, Razorpay has also partnered with the country's three leading banks and is in talks with over 20 banks to help integrate this technology into their existing payment infrastructure in the next few weeks.
MandateHQ is a unified platform that will help banks with end-to-end mandate lifecycle management including creating, viewing, updating, cancelling and pausing mandates as well as processing debits for valid mandates.
In addition, the MandateHQ platform will also help the banks to enable a 24-hour pre debit notification via email, SMS and WhatsApp along with providing end-users with a portal to manage card mandates.
"With the launch of MandateHQ in collaboration with Mastercard, we stand in support of the RBI directive of making auto-debit transactions safer from potential fraud. While this has created a certain level of challenge for the ecosystem in how they will pay monthly bills post-September, we want to make it easier and faster for banks to implement the e-mandate framework issued by RBI and also ensure that businesses and end-consumers are not inconvenienced,” Shashank Kumar, co-founder and cto of Razorpay, said.
Kumar believes that MandateHQ will encourage more businesses to start and adopt subscription-based business models eventually helping the subscription economy to scale up to 5-6x in the next year.
Next Article