India’s digital payment revolution has been nothing short of transformative. With over ~400 million active UPI users and 16+ billion monthly transactions (NPCI, Jan 2025), UPI has become the backbone of India’s financial ecosystem. Mobile phones, now ubiquitous with 1.2 billion+ subscribers (TRAI, 2024), have democratized access to banking. Yet, a critical gap remains for both businesses and customers alike: the friction in collecting beneficiary details like bank accounts, IFSC codes, or UPI IDs. RazorpayX is solving this with DirectToPhone Payouts, a groundbreaking comprehensive solution that lets businesses transfer money using just a phone number.
The Problem: Why Traditional Payout Methods pose a challenge?
Today, businesses across industries make payouts to customers, employees, or partners. But the process is riddled with hurdles:
- Complexity: Most users struggle to accurately recall their UPI IDs (VPA) or bank account numbers.
- User Hesitation: Users are usually not comfortable in sharing bank details on multiple platforms.
- Drop-offs: Lengthy onboarding flows lead to abandonment. For instance, leading gaming platforms observed a 20%+ drop-off during withdrawals as users often don’t remember their VPA or bank account details off the top of their heads.
- Operational Overheads: Validating and storing sensitive data (IFSC, account numbers) attracts a lot of compliance – adding to operational overheads.
These challenges are universal. Insurance providers struggle with refunds, gig platforms face delays in wage disbursals, and e-commerce giants like Flipkart grapple with COD refund complexities.
The Solution: DirectToPhone Payouts by RazorpayX
RazorpayX DirectToPhone Payouts eliminates dependency on bank details or UPI IDs. Here’s how it works:
- Name and Phone Number: Businesses only need the user’s name and mobile number to make a payout
- Automated VPA/Bank Fetch: RazorpayX leverages NPCI’s central mapper to fetch the UPI ID (VPA) or bank account linked to the mobile number
- Real-Time Name Matching: A fuzzy logic algorithm verifies the user’s name against the name fetched from the bank, ensuring security.
- Multi-Mode Payouts: Supports payouts via – UPI, IMPS, NEFT, and RTGS, catering to high-value transactions.
- Transparency: Businesses and users see the users’ beneficiary bank name upfront, building trust and avoiding any confusion.
For example, a gaming company can now let players withdraw winnings by simply entering their phone number. RazorpayX fetches their VPA, confirms the bank name, and processes payouts instantly – no more abandoned withdrawals.
Who Benefits? Use Cases Across Industries
- E-commerce & D2C: Simplify COD refunds and cashback without collecting bank details
- Gaming: Enable instant withdrawals for in-game rewards
- Gig Economy: Disburse daily wages to delivery partners or drivers seamlessly
- Insurance: Settle refunds faster by transferring funds to the claimant’s phone number
- Fintech & Loyalty Platforms: Distribute rewards or cashback effortlessly.
Why RazorpayX Stands Out? The RazorpayX Advantage.
While competitors offer basic “fetch VPA” APIs, RazorpayX delivers a compliance-first, end-to-end solution:
- Bank Name Display: We show the user’s beneficiary bank name post-payout, reducing disputes.
- Higher Success Rates: 99.8% payout success via optimized retries
- Scalability: Built to handle 3M+ daily transactions, supporting all payout modes – UPI, IMPS, NEFT, and RTGS.
- Compliance: NPCI-approved integration with the central mapper ensures adherence to regulations.
The Future of Payouts is Here
RazorpayX DirectToPhone Payouts isn’t just a product—it’s a paradigm shift. By aligning with India’s mobile-first ethos, we empower businesses to unlock growth, reduce operational costs, and deliver unmatched user experience.
Ready to transform your payout journey?
Connect with us at x.support@razorpay.com to get started.
Sources: NPCI, TRAI. Data as of Jan 2025.
