Razorpay Eases Recurring Payments For SaaS Firms


Recurring payments can be a challenge for the accounts receivable department, but as subscription-based services continue to dominate their markets, businesses cannot afford to drop the ball.

India-based online payments company Razorpay has launched its latest solution to support the recurring payment needs of an industry dealing with a high volume of these transactions: Software-as-a-Service.

Late last week, Razorpay announced the rollout of its “recurring payments” feature, enabling its clients to accept repeated payments by automatically initiating a debit transaction. The tool negates the need for SaaS firms or their clients to manually initiate the payment. Razorpay added that the feature will reduce the time SaaS firms spend on managing invoices in particular.

“SaaS businesses find it extremely difficult to manage all the hassles that come with recurring payments from customers,” said Razorpay Cofounder Shashank Kumar in a statement. “We’ve had existing clients and customers reach out to us and ask for options to circumvent this complicated process. There are also companies who register outside of India due to these payments-related issues.”

The company added that its recurring payments feature supports the receipt of payments from payers in India and abroad.

Currently, Razorpay explained, SaaS companies have the option of integrating an international payment gateway to support month-on-month transactions. But the company explained that this technology can only support domestic transactions on Indian cards, making international transactions expensive due to FX fees associated with those cards. SaaS businesses also have access to payments technology that enables six-month or one-year plans, but Razorpay said this feature means customers can’t try out a service for a shorter period of time and can lead to a loss of customers for SaaS firms.

Razorpay said one of its clients, Zoho, has already integrated the solution. The company offers online invoicing and subscription management services and can now offer its own clients Razorpay’s one-time or recurring payment offerings for its own clients.