Use Razorpay Route to split payments between third parties and manage settlements, refunds and reconciliations by creating Linked Accounts.
Razorpay Route allows you to split payments between third parties, sellers or bank accounts. Using Route, you can easily manage settlements, refunds, reconciliations and make vendor payments. It is helpful for businesses that disburse payments in a one-to-many model.
Razorpay Route simplifies the payment process when handling multiple vendors or accounts.
Following is the flow in which the funds move in Route:
To get started with Route:
Razorpay Route offers easy management, good control and complete transparency of fund movements between you, your sellers and customers alike. You take charge of funds that require a transfer, refund and settlement.
Using Razorpay Route, you can:
Handy Tips
Razorpay Route uses the existing Razorpay
The following are the business models across many industries that can benefit by using Razorpay Route:
A financial service that has multiple insurance aggregators might want to use Route to split payments between the aggregators.
Acme Corporation is an insurance aggregator. A customer logs into the website and purchases a health insurance policy of ₹ 10,000 from Insurer A and an add-on, cancer insurance for ₹ 5,000 from Insurer B. Acme can split the transaction amount and transfer it to the Linked Accounts of insurers A and B using Route. Suppose the customer cancels the add-on policy and seeks a refund. Being a Linked Account, Insurer B can directly refund ₹ 5,000 using the Refund Credits from their Dashboard.
A business that has multiple bank accounts might want to route payments to these accounts based on some rules, such as:
For example, Acme Corporation is a business operating in various locations in India, such as Chennai, Bangalore, Hyderabad, Lucknow and Delhi. It collects payments centrally and disburses payments via bank accounts created for every location. For example, suppose the Chennai location makes a sale of ₹ 10,000 for a month, and the Hyderabad location makes a sale of ₹ 15,000. In this case, Acme Corporation processes the respective payouts and decides the settlement schedules for each location.
An online marketplace is a business platform where products are sold not only by you but other third-party sellers as well. In such cases, you, as the marketplace owner, need to collect the payment from the customer and disburse it to the third-party sellers.
For example, Acme Corporation owns an e-commerce site. A customer buys a phone costing ₹ 10,000 from seller A, and a phone case costing ₹ 500 from seller B. Acme Corporation collects the total payment (₹ 10,000 + ₹ 500) from the customer and then transfers the respective funds to seller A and seller B. Also, Acme Corporation collects some charges from these sellers for using the e-commerce platform.
A business that offers various customer services such as home repairs, courier, health and wellness, needs to make payouts to service providers on demand.
For example, Acme Corporation offers various services to its customers and routes payments to its service providers. Let us say, a customer avails plumber’s service worth ₹ 1500, and an electrician’s service worth ₹ 1000. Acme Corporation splits payments between the service providers after deducting the commission charges.
You can extend and utilize Razorpay Route in all business models where you want to automate the disbursal of funds to one or more bank accounts. You can explore Razorpay Route and find how best it can serve your unique business model. Contact our
team for any queries.