Instant Mudra is a fintech company that aims to make banking services accessible to communities that are unbanked and underserved. With Razorpay Optimizer, Instant Mudra was able to manage multiple payment gateways and boost its transaction success rate while pursuing the goal of transforming rural banking.
In this case study, we take a look at the challenges Instant Mudra faced and understand how Razorpay helped provide a solution.
About Instant Mudra
Established in 2019, Instant Mudra is a fintech platform on a mission to transform rural banking services. It aims to take baking services to India’s remotest areas, where banks do not have branches yet, helping both banks and retailers.
Instant Mudra provides various essential services like banking, remittance, micro ATM, bill payments, online shopping, loans, and insurance, with a view to achieving financial inclusion. This is accomplished by engaging with locals and creating small centres in remote areas to help retailers with all their banking needs. By being a part of the system, a self-sustainable earning model is created for the locals.
As a financial institution and an entity dealing with retailers and banks, a smooth and efficient payment experience becomes critical for Instant Mudra.
The Challenge
Reliance on a single payment partner
Having a single payment partner put Instant Mudra at risk with there being a single point of failure. This was especially critical for a business that was working to provide various banking services.
Inability to leverage the best-priced payment route
With multiple payment partners, Instant Mudra was able to route transactions to a gateway that provided real-time settlements (i.e. settle the amount in real time to its current account). But managing multiple payment gateways and manually switching between them was really cumbersome for the team. Their system was built to switch all the traffic to one payment partner, due to which they could not benefit from choosing the lowest transaction costs, which vary a lot for every method.
Absence of a robust routing system
Building an algorithm to switch transactions in real-time, with complete flexibility, is expensive in terms of both time and effort. It requires a robust routing system to choose between the options available. Building this infrastructure requires 3 months of development effort and 1 month of maintenance effort annually. It was not easy for Instant Mudra to dedicate this amount of time and effort while continuing to focus on the business.
The Solution – Razorpay Optimizer, a complete payment management system
Razorpay reached out to Instant Mudra to offer early access to Optimizer, a complete payment management system with a robust routing system already in place. It was just the solution Instant Mudra was looking for.
All our problems were seamlessly managed in Optimizer. The integration experience was super-quick. And we could route transactions between multiple partners basis various parameters, giving us the much-needed flexibility and the maximum benefit from multiple payment partners.
Aniket Labde, Co-founder and COO, Instant Mudra
Using Optimizer, Instant Mudra was able to route transactions based on a variety of different parameters to achieve its business goals. For example, the team could route all card transactions through a gateway that offered them better financials, and settle transactions in real-time to their account. With Optimizer’s DIY dashboard, they were able to manage all their rules in no time with no coding effort.
The Impact: Transaction success rate and more
In the last 5 months, Instant Mudra has integrated with 3 payment partners and has routed 127,000 transactions through Optimizer, without having to do anything beyond a few clicks on Optimizer’s intuitive DIY dashboard.
Apart from seeing a jump of 10% in its transaction success rate, Instant Mudra was also able to save nearly 234 work-days by saving time and effort with Optimizer!
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Razorpay Optimizer has worked for Instant Mudra. It will work for your business too!
Optimizer is the complete payments management solution, enabling your business to improve customer experience and reduce transaction costs through intelligent routing.
To learn more about Razorpay Optimizer, please get in touch with us.
