Razorpay, Mastercard Partner to Launch MandateHQ for Recurring Payments

Fintech unicorn Razorpay and Mastercard has launched Mandate HQ, a platform that the companies claim is a safe and secure recurring payment interface. To further the implementation of digital payments in a safe and secure manner, the RBI has issued a framework for processing of e-mandates on recurring online transactions.

Shashank Kumar, co-founder and CTO, Razorpay says, “With the launch of MandateHQ in collaboration with Mastercard, we stand in support of the RBI directive of making auto-debit transactions safer from potential fraud. While this has created a certain level of challenge for the ecosystem in how they will pay monthly bills post-September, we want to make it easier and faster for banks to implement the e-mandate framework issued by RBI and also ensure that businesses and end-consumers are not inconvenienced.”

 “I believe products like MandateHQ will now encourage more businesses to start and adopt subscription-based business models,'' said Kumar of Razorpay. “I expect the subscription economy to scale upto 5-6x in the next year.”

In addition to its association with Mastercard, Razorpay has also partnered with the country’s three leading banks and is in talks with over 20 banks to help integrate this technology into their existing payment infrastructure in the next few weeks.

Kumar of Razorpay said previously all recurring payments were possible on credit cards and not mostly on debit cards. But now it would be possible for both.

“There are more than 900 million debit cards in the country,” said Kumar. “With the product going live, we are aiming to support all the 900 million debit cards and enable them for recurring transactions.”

 “It will enable all the partner banks to seamlessly adapt the new framework for recurring payments via debit and credit cards, UPI and other prepaid payment instruments (PPIs),” said Rajeev Kumar, senior vice president, market development, South Asia, Mastercard. “This is in compliance with RBI’s new mandate and ensures that bank customers can continue to enjoy hassle-free payments.”

“At HealthifyMe, we look forward to enabling that with Razorpay and are excited about what MandateHQ can deliver in the framework of new RBI guidelines,” said Vashisht. “Hopefully, it will help India move a step closer to global payments standards.”

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