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Mastercard Incorporated (MA - Free Report) recently teamed up with India-based payments solution provider Razorpay in a bid to introduce the API-equipped recurring payment solution — Mandate HQ. Notably, Razorpay intends to blend the innovative solution into the prevailing payment infrastructure of over 50 banks within a year.
Mandate HQ eases the work of card issuing banks and offers them end-to-end mandate lifecycle management capabilities, which simplifies recurring payments for businesses and customers. Following one-time customers’ approval, recurring payments basically authorize merchants to extract funds from the customers’ account on a continual basis for goods and services offered to them.
On top of that, the latest solution can easily be integrated within banks in a week. It will be of great use to subscription-based businesses encompassing OTT platforms, food tech, health tech, and many more. They will now have access to a broader customer base utilizing debit cards. Notably, recurring payments was previously limited to mostly credit card users. At the same time, the product comes with an online portal wherein end-users can keep track of current mandates and recurring transactions’ history.
Moreover, the recent move reinforces collective efforts of Mastercard and Razorpay in devising a solution aimed at addressing several challenges encountered by banks, card networks and subscription-based businesses. With higher adoption of Mandate HQ, even a small bank can expand their product offerings to facilitate seamless recurring payments for numerous digital banking customers and businesses.
Also, the latest product comes at an opportune time. Its compliance with the guideline issued by India’s central bank Reserve Bank of India (“RBI”) in handling e-mandates linked with recurring online transactions makes it noteworthy. AFA (Additional Factor of Authentication) has been made compulsory for recurring transactions valued at less than Rs 5,000 on debit cards, credit cards, UPI, and other prepaid interfaces. By the end of September 2021, stakeholders should fully abide by the guidelines issued by RBI.
Furthermore, the subscription economy holds ample growth potential across the globe. Per Razorpay’s management, introduction of products similar to Mandate HQ are anticipated to multiply the subscription economy to five-six fold in 2022. Emergence of upgraded subscription-based business models are likely to reflect growth prospects of recurring payments, which have multiplied to three-fold during the past few years as stated by management of Razorpay. Higher recurring payments pave the way for greater product differentiation and capture diversified consumer segments.
Time and again, Mastercard has collaborated with leading organizations and made substantial investments to tap growth prospects in the digital payments space in India. These initiatives bear testament to its relentless efforts of strengthening presence in the Indian market. In February this year, Mastercard had partnered with Razorpay for enhancing digital capabilities of micro, small and medium enterprises (MSMEs) in India. Other notable tie-ups across India include those with RBL Bank, BOB Financial Solutions and SBM Bank India.
India seems to be an attractive market for Mastercard, given the growing e-commerce businesses, inclination of consumers toward online shopping, elevated internet usage, increased smartphone usage and several government initiatives to boost the nation’s digital growth. Per India Brand Equity Foundation, the Indian e-commerce market is anticipated to witness a CAGR of 27% over the 2019-2024 period. According to the same, promising growth prospects amid the nation’s e-commerce industry is projected to help it emerge as the second largest e-commerce market globally by 2034.
Other major tech giants namely Visa Inc. (V - Free Report) , American Express Company (AXP - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) collaborated with India-based organizations for extending their presence across the nation.
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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Mastercard (MA), Razorpay Unveil Recurring Payment Solution
Mastercard Incorporated (MA - Free Report) recently teamed up with India-based payments solution provider Razorpay in a bid to introduce the API-equipped recurring payment solution — Mandate HQ. Notably, Razorpay intends to blend the innovative solution into the prevailing payment infrastructure of over 50 banks within a year.
Mandate HQ eases the work of card issuing banks and offers them end-to-end mandate lifecycle management capabilities, which simplifies recurring payments for businesses and customers. Following one-time customers’ approval, recurring payments basically authorize merchants to extract funds from the customers’ account on a continual basis for goods and services offered to them.
On top of that, the latest solution can easily be integrated within banks in a week. It will be of great use to subscription-based businesses encompassing OTT platforms, food tech, health tech, and many more. They will now have access to a broader customer base utilizing debit cards. Notably, recurring payments was previously limited to mostly credit card users. At the same time, the product comes with an online portal wherein end-users can keep track of current mandates and recurring transactions’ history.
Moreover, the recent move reinforces collective efforts of Mastercard and Razorpay in devising a solution aimed at addressing several challenges encountered by banks, card networks and subscription-based businesses. With higher adoption of Mandate HQ, even a small bank can expand their product offerings to facilitate seamless recurring payments for numerous digital banking customers and businesses.
Also, the latest product comes at an opportune time. Its compliance with the guideline issued by India’s central bank Reserve Bank of India (“RBI”) in handling e-mandates linked with recurring online transactions makes it noteworthy. AFA (Additional Factor of Authentication) has been made compulsory for recurring transactions valued at less than Rs 5,000 on debit cards, credit cards, UPI, and other prepaid interfaces. By the end of September 2021, stakeholders should fully abide by the guidelines issued by RBI.
Furthermore, the subscription economy holds ample growth potential across the globe. Per Razorpay’s management, introduction of products similar to Mandate HQ are anticipated to multiply the subscription economy to five-six fold in 2022. Emergence of upgraded subscription-based business models are likely to reflect growth prospects of recurring payments, which have multiplied to three-fold during the past few years as stated by management of Razorpay. Higher recurring payments pave the way for greater product differentiation and capture diversified consumer segments.
Time and again, Mastercard has collaborated with leading organizations and made substantial investments to tap growth prospects in the digital payments space in India. These initiatives bear testament to its relentless efforts of strengthening presence in the Indian market. In February this year, Mastercard had partnered with Razorpay for enhancing digital capabilities of micro, small and medium enterprises (MSMEs) in India. Other notable tie-ups across India include those with RBL Bank, BOB Financial Solutions and SBM Bank India.
India seems to be an attractive market for Mastercard, given the growing e-commerce businesses, inclination of consumers toward online shopping, elevated internet usage, increased smartphone usage and several government initiatives to boost the nation’s digital growth. Per India Brand Equity Foundation, the Indian e-commerce market is anticipated to witness a CAGR of 27% over the 2019-2024 period. According to the same, promising growth prospects amid the nation’s e-commerce industry is projected to help it emerge as the second largest e-commerce market globally by 2034.
Other major tech giants namely Visa Inc. (V - Free Report) , American Express Company (AXP - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) collaborated with India-based organizations for extending their presence across the nation.
Zacks Rank & Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 25.3% in a year compared with the industry’s rally of 5.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>