{"id":6016,"date":"2021-07-07T10:42:11","date_gmt":"2021-07-07T05:12:11","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=6016"},"modified":"2024-09-25T16:47:16","modified_gmt":"2024-09-25T11:17:16","slug":"how-mandatehq-will-revolutionise-the-subscription-economy","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/how-mandatehq-will-revolutionise-the-subscription-economy\/","title":{"rendered":"How MandateHQ will Revolutionise the Subscription Economy"},"content":{"rendered":"

To say that the subscription economy is booming would be an understatement. Over the past few years, the subscription model<\/a> has uncovered tremendous growth opportunities for B2C and B2B businesses alike. It allows online businesses to build long-term and sustainable relationships with customers by offering them the flexibility, ease, and convenience that comes with signing up for a recurring product or service.\u00a0<\/span><\/p>\r\n

At Razorpay, we\u2019ve been on a mission to empower the Indian subscription economy. However, up until now, we had only been solving for businesses and end customers. As part of our aim to build an end-to-end recurring payments stack for India, we have now created a solution for banks that allows them to enable recurring payments for their customers while complying with RBI\u2019s directive and guidelines around doing so.\u00a0<\/span><\/p>\r\n

The RBI has announced a set of guidelines for banks on the collection of recurring payments on cards, with an aim to make them more secure and transparent. To that end, Razorpay has partnered with Mastercard to create a solution called <\/span>MandateHQ<\/b> that helps banks comply with these guidelines and facilitate subscription payments.\u00a0<\/span><\/p>\r\n

What is MandateHQ?\u00a0<\/span><\/h2>\r\n

MandateHQ is an API-based, plug-n-play recurring payments interface that allows banks to seamlessly enable recurring payments on cards following the new RBI guidelines. The reason the solution is named so is that the term \u201cmandate\u201d refers to the standing instructions given to a bank to process recurring payments and HQ is short for headquarters, which essentially represents that MandateHQ is a one-stop solution that helps in managing the entire card-based mandate lifecycles.<\/p>\r\n

Banks don\u2019t have to worry about building a completely new solution from scratch to enable recurring payments on cards. Instead, they can simply integrate MandateHQ into their existing payments infrastructure and quickly go live.<\/p>\r\n

We have already partnered with India\u2019s three leading banks and are in talks with 20 other banks to help integrate this technology into their existing payment infrastructure in the coming weeks.\u00a0<\/span><\/p>\r\n

Here\u2019s a look at the new RBI guidelines that MandateHQ helps comply with:\u00a0<\/span><\/p>\r\n

RBI\u2019s directive on recurring card payments\u00a0<\/span><\/h2>\r\n

These regulations are applicable for all issuing banks, to process mandates on credit cards, debit cards, and other prepaid instruments, and have come into effect on 1st April 2021. The deadline to comply with the said guidelines is 30th September 2021.\u00a0

<\/span> As per the RBI guidelines:\u00a0<\/span><\/p>\r\n