MasterCard has made an undisclosed investment in Indian payment gateway RazorPay. A spokesperson for the company said that this was a strategic investment and was lesser than the $9 million round of funding it raised in October 2015.
RazorPay is also part of MasterCard Start Path program, a global fintech support system to develop new products. Through this, it will also tap into the MasterCard’s global risk and fraud expertise. The company has already integrated MasterCard Payment Gateway to enable merchants and card issuers to authenticate each other prior to the authorization of a transaction.
Over the next 6-8 months, they will also be expanding internationally to countries such as Indonesia, Philippines, Malaysia, Myanmar, Saudi Arabia and UAE and MasterCard will be helping the company with partnerships with local banks, Harshil Mathur, CEO or Razorpay told MediaNama.
Razorpay has also partnered with ICICI Bank, HDFC Bank and YES Bank to develop products for the unified payments interface (UPI).
Its list of clients include 5,000 merchants including the likes of Papa John’s, Knowlarity, Chai Point, Nestaway and Eatfresh, among others.
Razorpay processes payments via credit/debit cards, net banking and popular digital wallets from customers in real-time. It provides a secure link between merchant website, various issuing institutions, acquiring banks and other payment networks. The company says that it targets startups, small businesses and SMEs and added that they can setup online payments through their SDKs in 20 minutes. The company charges 2% per transaction and with no setup fee.
Funding: In total, Razorpay has raised $11.5 million from investors like Tiger Global, Matrix Partners. It had raised seed funding of $2.5 million from 33 investors including Y Combinator, Kunal Bahl & Rohit Bansal (Snapdeal founders), Punit Soni (ex-Flipkart CPO), Amit Gupta & Naveen Tewari (Inmobi founders), Kunal Shah & Sandeep Tandon (Freecharge founders).
Update: An earlier version of the said that Razorpay charges 2.5% per successful transaction. The company pointed out that they had updated their plans and the story now reflects this information.