On Thursday, Razorpay, an online payment and banking platform, announced that it will join the Open Network for Digital Commerce (ONDC) ecosystem. Thus, it became a payment gateway to launch payment reconciliation services for its sellers, buyers, and logistic partners.
Razorpay, through this solution, aims to offer a seamless and efficient way for the Network Participants. This is to settle funds and also process transactions on the ONDC.
The solution of Razorpay, by routing settlement information for transactions and providing support for documentation and dispute resolution, helps ensure that transactions are secure and validated.
The co-founder of Razorpay, Shashank Kumar, said that at Razorpay they always envisioned a world rich with businesses of all sizes. They are to help them leverage digital payment technologies to sell and grow faster. So, they are very excited to support the government in this shared vision of democratizing e-commerce with the help of the ONDC platform. This will also help the Kirana store owners and the SMEs of India reap digital commerce’s benefits.
Shashank Kumar further said that he believes that the possibilities of the Open Network for Digital Commerce network are endless. He is confident that the Payment Reconciliation Service will only strengthen the development of an Open Network for Digital Commerce’s technological infrastructure. It will help the ecosystem grow from a compliance and payments point of view.
One of the major benefits of the Open Network for Digital Commerce is its open-network approach. This allows the sellers and buyers to transact with each other. This is regardless of the platform they are on.
This also means that SMEs will have access to a bigger buyer universe, which can help expand their reach and grow their businesses.
The CEO of ONDC, Thampy Koshy, said they are thrilled to welcome Razorpay to Open Network for Digital Commerce. This is a great step towards their goal of enabling secure and seamless digital commerce for all. And with this addition, they continue to provide transparency and inclusion in the digital commerce sector. They also look forward to working with Razorpay to achieve this vision.
Razorpay is the 2nd fintech that joined Open Network for Digital Commerce this month.
Last month, the digital payments company, PhonePe went live on Open Network for Digital Commerce. Thus, PhonePe also made a big e-commerce foray with the hyperlocal commerce application called Pincode. PhonePe has announced to launch of the app in Bangalore in 150 pin codes. Bangalore shall be the 1st city to go live with food and grocery. They shall add other cities and categories soon.
About ONDC
ONDC is a private and non-profit company established by DPIIT of the Government of India. It was to develop open e-commerce.
ONDC are some specifications designed to bring about an open interchange and connections between different technology platforms, shoppers, and retailers. Technological self-reliance and demand for a level playing field majorly from small retailers. Taking up an open digital ecosystem throughout the major sectors and fixing the non-competitive behaviour of large e-commerce firms to capture the dollars 810 billion in domestic retail markets has led to its creation.
It is designed to prevent Big Tech companies from violating Consumer Protection Rules, 2021.
About Razorpay
Razorpay is a fintech company in India. The company offers payment gateway services to merchants, vendors, and e-commerce platforms.
