Credit and Finance for MSMEs: The growing digital adoption led by the pandemic is seeing a rise in uptake of no-code solutions from modest organizations that let the user to deploy computer software with out writing a single line of code. “Not every small business owner is an engineer. Many are intimidated by technology or they are solopreneurs and want to focus on running their business. Hence, the SMB promoters today are inclining towards digital tools that don’t require technical wherewithal or the need to hire additional tech talent,” fintech unicorn Razorpay’s SME Business Head Vedanarayan Vedantham told TheSpuzz Online.
“We’ve seen a huge growth in no code products such as payment link, payment page, and payment buttons, which were not very relevant earlier. Since the last 15 months, they’ve become way more mainstream for SMEs and in fact the payment gateway, which traditionally dominated the space, has taken a backseat,” he mentioned.
Payment hyperlink providing enables vendors to send a hyperlink to their buyers by way of an e mail, SMS, or messenger to spend for their purchases. This comes in handy for purchasers who do not use netbanking or UPI.
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Of the 5 million SMBs working with the Razorpay platform, more than 35 per cent use payment hyperlink and payment pages as modes of accepting payments from buyers. This was 10 per cent two years back.
This trend is accelerating as digitisation spreads to hinterlands and numerous more SMBs from these regions come on line. The organization onboarded 15 lakh new SMB buyers last year. Of this client base, pretty much 35-40 per cent opted for the payment hyperlink as their 1st item of option and an additional 20-30 per cent went for the payment web page. “Many merchants who don’t have time to set up a full fledged website but want an online presence for their firm opt for a payment page where they can also showcase their products as they accept payments,” he mentioned.
Another 25 per cent opted for the payment gateway. The rest is taken up by a extended tail of niche payment solutions which do not obtain mass resonance but are relevant for precise use instances. “One such product is payment buttons (where a payment tab is included into an existing website) which is suddenly seeing interest from 5-10 per cent of new customers,” mentioned Vedantham.
Overall, payment options is the Bengaluru-based firm’s quickest increasing segment contributing to 60 per cent of its small business, followed by the other two verticals: neobanking item RazorpayX and lending remedy Razorpay Capital.
Backed by marquee investors such as Sequoia Capital and GIC, the fintech big this year will focus on expanding its mobile app based offerings. “Currently, vendors can use it only to generate the payment link. The plan for the app is to potentially encompass the entire suite of products that we have across all verticals,” mentioned Vedantham.