Razorpay Collaborates With ONDC To Provide Payment Reconciliation Services For Both Buyers And Sellers

Razorpay, a leading full-stack payments and banking platform, has recently made a significant announcement that it has joined the Open Network for Digital Commerce (ONDC) ecosystem.

With this move, Razorpay has become the first payment gateway to introduce payment solution services for buyers, sellers, and logistic partners within the ONDC framework.

"The fintech major becomes the First Payment Gateway to launch a Payment Reconciliation Service for Network Participants (NPs) like buyers, sellers, and logistic partners, thereby streamlining the payment processes on ONDC, and providing them with an integrated single view of all their transactions," Razorpay said in a statement.

Razorpay's objective with this solution is to offer a smooth and effective method for Network Participants (NPs) to settle funds and execute transactions on the Open Network for Digital Commerce (ONDC). By directing settlement details for transactions and extending assistance for documentation and dispute resolution, Razorpay's solution guarantees that transactions are authenticated and safe.

Shashank Kumar, managing director and co-founder of Razorpay, said: "We at Razorpay have always envisioned a world rich of businesses of all sizes, help them leverage digital payment technologies to sell more and grow faster. So, we are really excited to support the government in this shared vision of democratising e-commerce through the ONDC platform and helping Indian SMEs and kirana store owners reap the benefits of digital commerce."

The ONDC will offer an open network approach that facilitates business transactions between buyers and sellers without the need for them to be on the same platform. This will grant small and medium enterprises (SMEs) access to a wider pool of buyers.

Thampy Koshy, CEO of ONDC, said: "We are thrilled to welcome Razorpay to ONDC. This is a significant step towards our goal of enabling seamless and secure digital commerce for everyone. With this addition, we continue to drive transparency and inclusion in the digital commerce space and we look forward to working with Razorpay towards achieving this vision."

The retail category of ONDC has surpassed the milestone of 5,000 daily orders, primarily in the areas of food and beverages (F&B) and grocery, indicating a 25-fold increase in the past two months.

In March, PhonePe, supported by Walmart, became the first fintech to join ONDC through its hyperlocal commerce app, Pincode, followed by Razorpay as the second. Moreover, ONDC welcomed an open-source mobility aggregation platform, Namma Yatri, which does not charge drivers any commission, as the latest addition to its network. On September 30, ONDC began operations in a few Bengaluru pin codes. Since then, it has grown to include more cities.