On Monday, Razorpay launched an ‘instant refunds’ feature on failed unified payments interface (UPI) transactions in the country. 

The fintech platform said that the solution by Razorpay POS (Point of Sale) would provide instant refunds for failed UPI transactions within two minutes, as against the industry benchmark of 5-6 business days.

Byas Nambisan, chief executive officer (CEO) at Razorpay POS, said that according to the company’s data, 5-15% of UPI transactions see friction due to pending status. He added that in 30-40% of the cases, the merchants lose their business because the customer is uncomfortable making a double payment. 

He emphasised that this industry-first feature will root out this issue by empowering their merchants to make these instant refunds happen. This will, in turn, enhance customer satisfaction, trust, and faster checkouts.

Razorpay has raised a total of $741.5 million to date from investors such as Lone Pine Capital, Alkeon Capital, TCV, GIC, Tiger Global, Sequoia Capital India, Ribbit Capital, Matrix Partners, Salesforce Ventures, Y Combinator and MasterCard.