As per recent reports, digital payments are expected to account for over 70 % of all payments by 2025. Enterprises need to stay ahead of changes in technologies, regulations, and consumer behavior.

Top 5 Digital Payment Trends Indian Enterprises

We will cover five high-stakes critical developments set to transform India’s digital payments ecosystem, especially in terms of enterprise businesses.

1. Card Tokenisation

According to a recent circular by the RBI, businesses and payment service providers will not be able to save customer card details from 1st January 2022. The aim of this reform is to keep the critical financial information of customers secure from card data breaches which have exposed the private payments data of millions of Indians. 

As an enterprise business, you should work quickly to set up a Card on File Tokenisation (CoFT) solution at the earliest, so that you can continue offering your customers a seamless checkout experience. Doing so before 1st January 2022 will also enable you to preserve the stored card details of their customers that transact between now and the end of the year – which is important given the upcoming festive season.

Who is affected: E-commerce businesses

How it impacts them: 

  • End-users will have to enter card details every time they use them to pay
  • Businesses will not be able to save cards or provide personalised offers

What is the impact: 

  • Bad checkout experience and increased cart abandonment
  • Greater security for debit and credit card users

Razorpay TokenHQ is India’s first and only multi-network card tokenisation solution to be integrated with all three card networks: Visa, Mastercard and RuPay. 

Related Read: What is Card Tokenization?

2. Smart Payments Routing

False declines – or transactions that fail due to some break in the payments chain that is not attributable to the payer or the payee – are a big problem in the payment process. 

According to a report by Digital Commerce 360, nearly 33% of failed payments are not reattempted. In other words, up to one-third of your declines are customers your business won’t see again!

Artificial intelligence algorithms can use existing payments data to automate the process of routing transactions through multiple gateways to optimize transaction success rates, or even choose the least expensive route for payments. This has the added advantage of making payment gateway integration much easier.

Who it impacts: Businesses with more than 1 payment gateway

How it impacts: 

  • Higher transaction success rates, reducing cart abandonment
  • Reduces cost, effort, and time taken in adding new payment gateways

What is the impact:

  • Increased revenues as more transactions succeed and fewer are abandoned
  • Improved bandwidth for in-house developers and engineers

If you are interested in increasing your sales by automating your payments routing, get in touch with us at

Read More About: What is Deferred Payment and How Does it Work?

3. Card-based Mandates

There are many businesses which now offer customers recurring periodic payments to access their services, and RBI guidelines being enforced after 30th September 2021 are designed to improve access and security for debit and credit cardholders. 

Banks will be required to inform customers 24 hours before a recurring payment and will require an OTP for every transaction greater than INR 5,000. 

Further, now such payments can be enabled on debit cards – meaning that businesses can now hope to sell their services to the holders of 850 million-plus debit cards in India!

Who it impacts: OTT Platforms, D2C subscription businesses, telecom companies, insurance companies, SaaS businesses, Edtech, media subscriptions, etc.

How it impacts:

  • Greater transparency improves customer experience and brand loyalty
  • New potential customers, as 850 million + debit card holders can now access their services

What is the impact:

  • Debit cards holders can now sign up for recurring payments – opening up 900m payment instruments for subscriptions and other long-term services
  • Potential revenue and customer loss if recurring payments aren’t available for your business

Explore how Razorpay is empowering banks through MandateHQ and helping businesses solve their problems with recurring payments through Razorpay Subscriptions

4. Affordability / Buy Now, Pay Later

Certainly one of the biggest trends in payments in 2020, affordability solutions such as ‘Buy Now, Pay Later’ have taken the e-commerce industry across the world by storm. 

By breaking down the immediate cost to the end consumer into smaller and more affordable instalments, these solutions have empowered even India’s usually debt-averse consumers to indulge in a little retail therapy to beat the pandemic blues. 

Over time, these solutions have adapted to become even more seamless. Today, the process takes just a few clicks and less than a minute and gives customers the option to pay across different timelines without any hidden fees or charges.

Who it impacts: Everyone, especially e-commerce sellers of luxury brands or gadgets and Edtech players due to demand for upskilling

How it impacts: 

  • Customers now expect to be able to pay in interest-free installments
  • Increases addressable targets by spreading the cost over a longer period of time

What is the impact:

  • Companies using such solutions are generating higher revenues by leveraging hitherto untapped customer segments

Explore how Razorpay can help grow your business and increase your revenue through our affordability suite.

5. Payments with Reward Points

Rewards programs and loyalty points have been widely used to increase brand engagement and retention, but the process of redeeming them has been a consistent pain point. 

However, with greater adoption of digital payments methods and the growth of a digital ecosystem, these points can now be utilised to pay online and offline for all kinds of purchases from a variety of businesses. This is advantageous to the points issuers, the businesses accepting them as payment, as well as the end-user.

Who it impacts: Points issuing businesses (credit card companies, airlines, etc.) and businesses.

How it impacts:

  • Customers can now redeem reward points easily and conveniently
  • Point issuers will now actually convey value to customers
  • Businesses will be able to acquire and attract new customers

What is the impact:

  • Increased customer loyalty and satisfaction for points issuers
  • Increased revenue and sales for businesses accepting reward points

If you are interested in activating payments with reward points for your business as an existing Razorpay customer, leave a comment below or write to our razorpay support team to get this feature activated on your Razorpay account today!

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