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Razorpay, Mastercard Launched Recurring Payment Interface – MandateHQ

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solution for recurring paymentsOn July 06, 2021, Razorpay, a Payments solution provider, in partnership with Mastercard launched a recurring payment interface named ‘MandateHQ’, to support card-issuing banks that wish to enable recurring payments for its customers.

  • MandateHQ is an API (Application Programming Interface)-based plug-n-play solution, which would reduce the go-live time of card-issuing banks.
  • It will also help the banks to implement the Reserve Bank of India’s (RBI) new framework on automatic debit and recurring payments.

RBI’s Framework:

i.Earlier the recurring bills such as mobile, utility, subscription payments of different OTT (Over-the-top) platforms, etc., were debited automatically from customers’ cards (credit/debit/prepaid) through online transactions.

ii.In 2019, RBI has issued additional norms for Banks to be followed for processing of e-mandate under recurring payments such as Additional Factor Authentication (AFA), additional one-time password (OTP), Prior notifications, etc.

  • AFA was mandated for all recurring transactions below Rs 5000 on debit cards, credit cards, Unified Payments Interface (UPI) and other prepaid payment instruments (PPIs)(e-wallet).

iii.The timeline for banks to adopt and implement the norms were extended till September 30, 2021. Click here to know more

Features of MandateHQ:

i.It could be fully integrated with any bank within 7 days (other solutions would take a few weeks).

ii.It would help banks to manage the creating, viewing, updating, cancelling, pausing, and processing debits of mandates easily.

iii.It would also support the banks to send a 24-hour pre debit notification (mandated by RBI) via electronic e-mail, SMS, and WhatsApp. It will also help the customers to manage their card mandates.

iii.It intends to integrate MandateHQ with more than 50 banks in the next 12 months and is expected to increase by 5 to 6 times in 2022.

iv.Recurring payments: The overall market opportunity for recurring payments is estimated between Rs 20-25 billion, it is continuing to grow at 40 percent year-on-year, and a 3X growth is expected in 2 years.

v.The launch of UPI-Autopay in July 2020 by NPCI to ease online recurring payments has increased the merchant demand for subscriptions by 5 times in the last 6 months.

Note – Currently, BillDesk provides a similar recurring payment interface service in partnership with Visa.

Recent Related News:

In February 2021, Mastercard and Razorpay joined to empower Indian micro, small and medium enterprises (MSMEs) and startups with digitising their operations and preparing them for a cashless future.

About Razorpay Software Private Limited:

Establishment – 2014
Headquarters – Bangalore, Karnataka
CEO – Harshil Mathur