How Razorpay and Mastercard will help MSMEs to build digital footprints?

Mastercard and Razorpay launched a partnership together to help MSMEs undergo digital transformation as the market shifts to cashless payments.

Razorpay and Mastercard have partnered up to help several micro, small and medium scale enterprises also known as MSMEs across India to transform their operations to the digital landscape as times change and the business paradigm shifts into a cashless market. Mastercard and Razorpay launched a partnership which puts together Razorpay’s payment processing capabilities along with Mastercard’s trusted and secure digital banking solutions and card services.

Criteria for MSMEs

Based on the criteria of Investment in Plant & Machinery/equipment and Annual Turnover, MSMEs were classified in July 2020 as follows:

  • Micro Enterprises: Not more than Rs 1 crore investment and Annual Turnover not more than Rs. 5 crores
  • Small Enterprises: Not more than Rs.10 crore investment and Annual Turnover not more than Rs. 50 crores
  • Medium Enterprises: Not more than Rs.50 crore investment and Annual Turnover not more than Rs. 250 crores

Shift in Retail Payments Scenario

The pandemic led to a lot of changes in the retail payments of India as more and more people shifted to cashless transactions. Prior to the pandemic, nearly 90 percent of retail payments in India were transacted via cash. However, post pandemic there has been a rapid shift towards digital technologies and a change in the way consumers shop and pay. The end result is a potential expansion of digital payments in India which has opened up the gates for merchants, acquirers and Fintech companies to invest in such directions. 

As the future in the payments industry seems likely to become more digital, SMEs and start-ups need to establish a stronghold in digitalising their companies to increase consumer base and meet the demand for secure, convenient and touch-free transactions. As MSMEs often do not have the means to make such transformations, Mastercard and Razorpay’s partnership will work towards helping MSMEs make the necessary changes.

Partnership between Razorpay and Mastercard

The Fintech Revolution is bound to alter the payment and banking experience of consumers and businesses. The market is evolving to cater to different sets of consumers and businesses. Mastercard being the global payments and technology leader will further induce digitalisation and help small scale businesses in adopting industry-leading technologies that help ensure efficiency. 

At the same time, recently turned Unicorn, Razorpay will help merchants across India become digitally and technologically equipped providing them safe, secure ways to make payments.  The two companies will also work together on making recurring payments more accessible to businesses and consumers. They will create consistent onboarding solutions for bill payments, digital content platforms and other subscription services. 

We hope that the partnership will be a successful one and will help create a positive transformation in the digital payments space whilst uplifting the small and medium businesses in reaching the level of digitalisation that the future economy requires.

Smruthi Krishnan
Smruthi Krishnan
Smruthi interviews and writes on inspiring entrepreneurs and the success stories of start-ups. She is currently pursuing Economics major from Delhi University.

Your View Matters


Please enter your comment!
Please enter your name here

Disclaimer: The opinions expressed by columnists are their own, not those of Dutch Uncles

If you wish to contribute or have a story suggestion,
email to [email protected]

Also Read

B2B Aggregators Disrupting the FMCG Distribution

The independent grocery store colloquially known as the Kirana...

How Mattress Brands should Market Themselves?

Rewinding the time machine to the early and mid-2000s...

UPI 123 Pay : Democratising Retail Payments...

For financial inclusion of the feature phone users in...