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.