With the emergence of complex business models like two-sided marketplaces, crowdfunding portals, food, cab and home service aggregators etc., there is a need for robust payment systems that effectively address the needs of buyers, sellers and other third parties.

Handling the flow of money across multiple parties is a complex process that involves:

  • Collecting payments from buyers through multiple modes
  • Retaining service fees and commissions
  • Routing the balance payment to third parties like vendors, business partners etc.,
  • Real-time reconciliation of the entire process
  • Ensuring that compliance and audit requirements are met

Many enterprises today handle all these requirements completely manually or by integrating several disparate third party solutions. This results in significant resources spent on managing the payments infrastructure instead of focussing on the core business.

How Razorpay route comes into picture?

At Razorpay, we believe that payments should be simplified through automation, more so for complex business models. This is why we launched Razorpay Route – an end-to-end solution that enables businesses to handle money flows through networks of sellers, third-parties and bank accounts with the help of robust APIs. Razorpay Route also provides flexibility to its users by giving them full control of payment schedules, payment methods, refunds and reconciliations. And, using Razorpay, sellers can also collect payments via a host of payment modes like credit cards, debit cards, netbanking, UPI and many wallets.


The product is capable of handling end-to-end payment flows for several business use cases like:


For platforms that connect sellers and buyers, Razorpay Route provides the capability of splitting individual customer payments across multiple sellers with complete flexibility and transparency. Details like the transfer amount, settlement cycles and deductions can be easily automated and managed through a nifty dashboard.

For example – A customer buys a phone (for ₹ 10,000) and a phone case (for ₹ 500) on Mplace.com. The phone is sold by Seller A, while the case is sold by Seller B. With Razorpay Route, Mplace.com can collect the payment from the customer and then split the payment between Seller A and Seller B after deducting their own commission. Mplace.com can then automate settlement terms and schedules, handle reconciliations, refunds, incentives etc., via Razorpay Route.


Many businesses maintain multiple bank accounts and route payments to them on the basis of business needs such as

  • Routing the payment for each region/location into separate accounts
  • Splitting payments to different business units – like factories, warehouses, franchisees etc.,for better accounting.

For example, CareerStarter is an education chain operating in various locations in India – Chennai, Bangalore, Hyderabad, Lucknow and Delhi. Careeerstarter.in centrally collects payments for course sales and disburses payments to regional bank accounts. For the month of September 2017, the Chennai branch made ₹ 50,000 and the Hyderabad branch made ₹ 65,000 in sales. Using Razorpay Route, CareerStarter can collect customer payments from Careerstarter.in and schedule the respective payouts to different branches based on business requirements.

On Demand Services

Through Razorpay Route, aggregators of food delivery, cabs, home services etc, can manage the entire payment lifecycle from collecting customer payments to settling with individual delivery personnel, cab drivers, restaurants and grocery chains.

For example, HomeClap provides plumbing and cleaning services to customers and routes payments to its service providers. A customer avails plumbing services worth ₹ 500 and cleaning services worth ₹1000. With Razorpay Route, HomeClap can effortlessly split payments among different service providers for the services provided after deducting charges like commissions, taxes etc.,

Money movement for businesses is an enormous task with strict compliance requirements, frequent auditing and dealing with several internal systems. And, that’s precisely the complexities that Razorpay Route solves.

If you are a business looking to split and transfer payments easily, here is where you can find out more about Razorpay Route.

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    Shashank Kumar
    Author Shashank Kumar

    Shashank Kumar is the Co-founder of Razorpay. He quit his full-time job to change how online payments work in India, and has been at the forefront of Razorpay's exponential growth.

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