Razorpay- Mastercard launch MandateHQ payment interface
Payments solution provider Razorpay has partnered with Mastercard to launch ‘MandateHQ’.
- MandateHQ is a payment interface that will help card-issuing banks to enable recurring payments for customers.
- Razorpay aims to integrate MandateHQ with more than 50 banks in 12 months.
- In addition to Mastercard, Razorpay has also collaborated with three banks. It is also in talk with about 20 banks to help them in integrating MandateHQ technology into existing payment infrastructure.
Reserve Bank of India (RBI) had issued a framework to process e-mandates on recurring online transactions. It made Additional Factor of Authentication (AFA) mandatory for all recurring transactions below ₹5,000 made using debit cards, credit cards, Unified Payment Interface (UPI), and other Prepaid Payment Instruments (PPIs). As per RBI notification, all stakeholders are required to ensure full compliance with this framework by September 30, 2021.
Who are required to follow RBI’s directive?
RBI’s directive is applicable to all recurring payments which were debited automatically from customers’ credit card, debit card or prepaid card for mobile bills, utility bills and other recurring bills. It will also be applicable to subscription payments like OTT streaming services.
About Razorpay’s MandateHQ
MandateHQ is an API-based plug-n-play solution. It was launched to reduce go-live time for any card issuing bank that seeks to enable recurring payments for its customers. It is a unified platform to help banks with end-to-end mandate lifecycle management such as creating, viewing, updating, cancelling & pausing mandates. It will also help businesses, particularly subscription-based businesses, to get access to a wider customer base who use debit cards. MandateHQ solution can be fully integrated with any bank within seven days in contrast with other solutions which take a few weeks under normal conditions. It will also help banks to enable a 24-hour pre debit notification through email, SMS, and WhatsApp.
Month: Current Affairs - July, 2021
Category: Economy & Banking Current Affairs
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