Imagine a business in India accepting payments through UPI, credit cards, and digital wallets — all on one platform. That’s the power of Razorpay.
Founded in 2014 by Harshil Mathur and Shashank Kumar, Razorpay has become India’s leading payment gateway, offering secure and seamless digital transactions for over 10 million businesses. From startups to enterprises, Razorpay enables companies to accept, process, and disburse payments through a unified system.
In 2025, Razorpay is more than just a gateway — it’s a full fintech ecosystem offering RazorpayX (banking), Razorpay Capital (lending), Razorpay Payroll, and Razorpay POS for in-store payments. It processes billions of dollars in transactions every month and continues to expand across Asia and the Middle East.
By the end of this guide, you’ll understand what Razorpay is, how it works, how it makes money, and how you can build your own Razorpay-like platform with Miracuves’ ready fintech clone solution.
What is Razorpay?
Razorpay is a digital payment gateway and financial technology platform that enables businesses to accept, process, and disburse payments online. It provides an all-in-one solution supporting cards, UPI, net banking, EMI, and popular wallets — all from a single integration.
The main problem Razorpay solves is payment fragmentation in India’s fast-growing digital economy. Before Razorpay, merchants had to deal with multiple banking partners, manual reconciliations, and delayed settlements. Razorpay unified all of this into a single, simple platform that handles payments, banking, and lending with ease.
Its target users include startups, e-commerce stores, freelancers, and large enterprises. From small D2C brands to giants like Swiggy, CRED, and Airtel, Razorpay powers payments across industries.
As of 2025, Razorpay is valued at over $7.5 billion and processes more than $150 billion in annual payment volume, holding the largest market share among Indian payment gateways.
It became successful by providing fast onboarding, simple APIs, transparent pricing, and constant innovation — making it the go-to fintech partner for millions of Indian and global businesses.
How Does Razorpay Work? Step-by-Step Breakdown
For Users (Businesses and Merchants)
Razorpay’s platform is designed for simplicity. Businesses can sign up, integrate, and start accepting payments within minutes — without heavy technical or banking setup.
Step-by-step merchant journey:
- Account Setup: Businesses sign up on Razorpay’s dashboard, complete KYC verification, and link a bank account.
- Integration: Merchants integrate Razorpay via plugins (for Shopify, WooCommerce, etc.) or custom APIs to start accepting payments online.
- Payment Acceptance: Customers pay using cards, UPI, net banking, or digital wallets like Paytm, PhonePe, and Google Pay.
- Processing: Razorpay securely processes the payment, confirms authorization, and routes it to the merchant’s account.
- Settlement: Payments are settled to the merchant’s bank, usually within one business day.
- Dashboard Access: Merchants can view transactions, track settlements, issue refunds, and manage analytics from a unified dashboard.
Example:
A D2C skincare brand uses Razorpay to accept payments from customers shopping via UPI, debit cards, or EMI. Razorpay handles every transaction, provides real-time confirmation, and transfers funds automatically to the brand’s bank account.
For Platforms and Marketplaces
Razorpay’s Route and Partner solutions help marketplaces, aggregators, and SaaS platforms manage split payments, vendor onboarding, and payouts.
- Onboarding: Vendors or partners are verified through Razorpay’s automated KYC system.
- Split Settlements: The platform can route funds automatically between multiple recipients after each sale.
- Commissions: Razorpay earns service fees for processing each transaction and for enabling real-time payouts.
Technical Overview
Razorpay operates on a cloud-based, API-driven architecture built for speed and security. It connects directly to major Indian and international payment networks.
Its tech stack includes microservices, RESTful APIs, and AI-based fraud detection, ensuring fast transaction authorization and minimal payment failures.
Razorpay also supports real-time webhooks that notify businesses instantly of payment events like success, failure, or refunds.
Razorpay’s Business Model Explained
Razorpay’s business model is built on offering an integrated suite of payment, banking, and lending services — earning revenue from transaction fees, financial products, and subscription-based software tools.
1. Transaction Fees
The primary source of revenue comes from processing online and offline payments. Razorpay charges merchants a small percentage per successful transaction:
- Domestic cards & UPI: 1.8% – 2%
- International cards: 3% – 4%
- Wallets & EMI: Around 2.5%
With millions of businesses transacting daily, these micro-fees add up to substantial annual revenue.
2. RazorpayX (Banking Platform)
RazorpayX turns traditional banking digital. It offers current accounts, automated payroll, and vendor payments. The company earns from account maintenance fees, service charges, and interest on deposits managed via partner banks.
3. Razorpay Capital
Through Razorpay Capital, businesses can access short-term loans and credit based on their transaction data. Razorpay earns interest and commission from these disbursements, partnering with financial institutions for risk management.
4. Razorpay Payroll & Payouts
The platform helps small and medium businesses manage employee salaries, contractor payments, and vendor settlements. It charges a monthly or usage-based subscription fee for these SaaS products.
5. Enterprise & API Solutions
Large corporations use Razorpay’s APIs for custom payment flows, subscription billing, and recurring invoicing. Razorpay offers volume-based discounts while still earning steady margins from high processing volumes.
As of 2025, Razorpay’s annualized revenue exceeds $600 million, driven by rapid digital adoption, financial product expansion, and its dominance in UPI and card transactions across India.
Key Features That Make Razorpay Successful
Razorpay’s rapid rise in India’s fintech industry is powered by its all-in-one platform approach — combining payments, banking, and automation tools to give businesses a complete financial ecosystem. Below are the features that make Razorpay a standout in 2025.
1. Multi-Channel Payment Support
Razorpay enables businesses to accept payments from UPI, credit and debit cards, net banking, EMI options, and mobile wallets — all from one platform. It supports over 100+ international currencies, allowing Indian merchants to sell globally with ease.
2. RazorpayX – Smart Business Banking
RazorpayX has transformed how companies manage money. It offers digital current accounts, instant settlements, automated payouts, and integrated payroll management, helping businesses replace manual banking processes with a fully digital experience.
3. Subscriptions and Recurring Billing
Perfect for SaaS and subscription-based businesses, Razorpay Subscriptions automates recurring payments with tools for invoicing, reminders, and flexible billing cycles.
4. Developer-Friendly APIs and Plugins
Razorpay’s clean APIs and SDKs make integration easy for developers. Businesses can embed payment gateways on websites or apps and access pre-built plugins for Shopify, WooCommerce, and Magento.
5. Real-Time Analytics and Dashboard
Merchants get access to detailed payment analytics — including refunds, settlements, and conversion rates — via Razorpay’s intuitive dashboard. These insights help optimize revenue and detect issues instantly.
6. Instant Settlements
Razorpay’s Instant Settlement feature helps merchants receive funds in real time, improving cash flow for small businesses and e-commerce stores.
7. Razorpay Capital
By analyzing a merchant’s transaction history, Razorpay Capital offers short-term loans and working capital, enabling businesses to grow faster without depending on traditional banks.
8. Razorpay POS and QR
Offline merchants can use Razorpay POS terminals and dynamic QR codes to accept contactless payments — bridging online and offline commerce.
9. AI-Powered Fraud Detection
Razorpay uses AI and machine learning to detect fraudulent activity, reduce chargebacks, and maintain secure transactions across millions of payments daily.
10. International Expansion & Compliance
Razorpay now enables cross-border payments, supports multi-currency settlement, and complies with India’s RBI and PCI DSS regulations, making it trusted by both local and global businesses.
Recent 2025 Updates:
Razorpay introduced AI-powered Smart Routing, UPI AutoPay 2.0, and Embedded Finance APIs that allow businesses to integrate lending, insurance, and payroll services directly into their platforms.
Read Also :- How Much Does It Really Cost to Build a Fintech App in 2025?
The Technology Behind Razorpay
Razorpay’s technological foundation is one of the strongest in the Indian fintech ecosystem. It combines scalability, reliability, and advanced security protocols to process millions of transactions daily with near-zero downtime.
Tech Stack Overview
Razorpay’s backend is primarily built on Java, Python, and Node.js, optimized for high concurrency and fast processing. It uses PostgreSQL and MongoDB for data storage, and Redis for caching and queue management. The platform runs on AWS Cloud Infrastructure, enabling rapid scaling and consistent uptime.
On the frontend, Razorpay uses React and TypeScript for its web dashboards and merchant portals, ensuring smooth performance and intuitive UX across devices.
Real-Time Payment Processing
Razorpay’s infrastructure is designed to handle large volumes of real-time transactions with millisecond-level authorization. Each transaction moves through encrypted APIs, from customer initiation to bank authorization to merchant confirmation — all within seconds.
Security and Compliance
Razorpay uses end-to-end encryption, tokenization, and AI-based fraud monitoring to protect user data. It’s PCI DSS Level 1 certified and fully compliant with RBI guidelines and Payment Aggregator regulations in India.
Scalability and Reliability
The platform uses microservices architecture and containerization (Docker + Kubernetes) for modular scaling. During peak seasons such as festive sales, Razorpay scales seamlessly to handle billions of rupees in transactions without service interruption.
Machine Learning and Fraud Prevention
Razorpay’s in-house AI engine continuously learns from transaction data to identify unusual behavior, detect fraudulent activity, and prevent chargebacks. Its fraud detection system has reduced fraudulent attempts by over 35% year-over-year.
API Ecosystem and Integrations
Razorpay provides a wide range of RESTful APIs and SDKs for developers. Businesses can build custom payment experiences, automate payouts, or connect to ERP systems. Its pre-built integrations support Shopify, WooCommerce, Magento, and native Android/iOS apps.
RazorpayX Technology Layer
RazorpayX uses banking APIs to connect businesses directly with partner banks for instant settlements, account creation, and vendor payments. This API banking model replaces manual operations with automation and efficiency.
In short, Razorpay’s tech architecture combines AI, cloud infrastructure, and API-first design — making it one of the most reliable and secure fintech ecosystems in India and Asia.
Razorpay’s Impact and Market Opportunity
Razorpay has revolutionized digital payments in India by bringing every aspect of financial operations — payments, banking, payroll, and lending — under one intelligent ecosystem. Its growth symbolizes India’s fintech transformation and the global shift toward digital-first commerce.
Industry Disruption
Before Razorpay, payment processing in India was fragmented and slow. Merchants relied on traditional banks and outdated systems. Razorpay changed that by introducing a unified, API-driven payments platform — making digital transactions effortless for millions of small and large businesses.
It bridged the gap between banks and new-age startups, becoming the go-to platform for India’s fast-growing digital economy.
Market Statistics and Growth
As of 2025, Razorpay processes over $150 billion annually, powering 10+ million businesses and capturing a 60%+ share of India’s payment gateway market.
The company has maintained 40% year-over-year growth, fueled by the expansion of UPI, card payments, and SME lending.
India’s digital payments market is expected to reach $2.2 trillion by 2030, positioning Razorpay as one of the key players in the world’s fastest-growing fintech hub.
User Demographics and Behavior
Razorpay serves businesses across e-commerce, edtech, healthcare, SaaS, and D2C sectors. Its largest user base includes small merchants, subscription-based startups, and enterprises handling cross-border payments.
Over 70% of Razorpay’s clients are SMEs and digital-first entrepreneurs, reflecting India’s booming startup ecosystem.
Geographic Presence
Headquartered in Bengaluru, Razorpay operates across India and has begun expanding into the Middle East and Southeast Asia. The company plans to extend its infrastructure to more emerging markets with similar digital payment needs.
Future Projections
Razorpay aims to process over $300 billion annually by 2028, driven by UPI 2.0, AI automation, and embedded finance. It’s also exploring integration with CBDC (Central Bank Digital Currency) systems for the next phase of fintech innovation.
Opportunities for Entrepreneurs
Razorpay’s model presents huge opportunities for new entrepreneurs looking to enter the fintech space. With businesses worldwide demanding localized payment gateways and smart banking solutions, creating a Razorpay-like platform tailored to regional markets can be immensely profitable.
Also Read :- Top UI/UX Mistakes in Digital Banking & Fintech Apps
Building Your Own Razorpay-Like Platform
The rise of Razorpay proves that a well-designed fintech platform can revolutionize an entire country’s digital economy. Today, entrepreneurs across the world are looking to replicate this success by launching localized, scalable, and secure payment ecosystems similar to Razorpay.
Why Businesses Want Razorpay Clones
Razorpay’s biggest strength lies in its end-to-end fintech ecosystem — combining payments, banking, and credit services in one unified platform. Businesses want similar systems to serve regional markets, handle multi-currency transactions, and offer integrated financial tools without building from scratch.
Key Considerations for Development
When developing a Razorpay-like platform, you must prioritize:
- Multi-Payment Support: Enable cards, UPI, wallets, net banking, and EMI options.
- Unified Dashboard: Allow merchants to track transactions, refunds, and settlements in real time.
- Security & Compliance: Implement PCI DSS Level 1 standards, RBI or local regulatory compliance, and advanced encryption.
- AI-Powered Fraud Detection: Use ML algorithms for transaction monitoring and anomaly detection.
- Banking Integration: Offer smart banking with current accounts, automated payouts, and real-time settlements.
- Scalable Infrastructure: Use a microservices and cloud-based system to handle billions in annual transaction volume.
Cost Factors & Pricing Breakdown
Razorpay-Like App Development — Market Price
| Development Level | Inclusions | Estimated Market Price (USD) |
|---|---|---|
| 1. Basic Payment Gateway (MVP Platform) | Core payment processing engine, API-based checkout integration, support for limited payment methods (cards + 1–2 local methods), basic merchant onboarding, simple settlement reports, transaction history, refunds support, single-currency support, web-based merchant dashboard with basic analytics | $80,000 |
| 2. Mid-Level Razorpay-Style Payments Platform | Multi-currency and multi-method support (cards, UPI, net banking, wallets), improved risk checks, basic subscription/recurring billing, configurable fees & taxes, payout and settlement management, richer reporting & analytics, role-based access for merchant teams, sandbox environment, full web console | $140,000 |
| 3. Advanced Razorpay-Level Unified Payments Stack | High-availability, multi-region setup, advanced fraud & risk engine, tokenization & vaulted cards, robust subscription & mandate management, smart routing to multiple acquirers/PSPs, chargeback & dispute tools, partner/merchant hierarchy, deep analytics, compliance & audit workflows, cloud-native microservices | $220,000+ |
Razorpay-Style Payments Platform Development
The prices above reflect the global market cost of developing a Razorpay-like online payments platform — typically ranging from $80,000 to over $220,000, with a delivery timeline of around 4–12 months depending on how many payment methods and regions you support, the depth of fraud & risk controls, regulatory/compliance scope, and the scalability required to handle high transaction volumes.
Miracuves Pricing for a Razorpay-Like Custom Platform
Miracuves Price: Starts at $15,999
This starting price is positioned for a feature-rich, JS-based Razorpay-style payments platform that can include core payment processing, checkout APIs, support for multiple methods (cards, UPI, net banking, wallets via your chosen providers), merchant onboarding, settlements, reporting dashboards, and a modern web-based merchant console—while still leaving room to extend into advanced risk engines, subscription billing, smart routing, and multi-region scaling as your business grows.
Note: This includes full non-encrypted source code (complete ownership), complete deployment support, backend & API setup, admin/merchant panel configuration, and assistance with publishing on the Google Play Store and Apple App Store—ensuring you receive a fully operational payments ecosystem ready for launch and future expansion.
Delivery Timeline for a Razorpay-Like Platform with Miracuves
For a Razorpay-style, JS-based custom build, the typical delivery timeline with Miracuves is approximately 30–90 days, depending on:
- Number of payment methods and currencies you want to support
- Complexity of integrations (acquirers, PSPs, UPI/bank rails, fraud engines, KYC/AML providers)
- Depth of merchant reporting, reconciliation, and settlement workflows
- Required compliance, audit trails, and long-term scalability expectations
Tech Stack
We preferably will be using JavaScript for building the entire solution (Node.js/Nest.js/Next.js for the web backend + frontend) and Flutter / React Native for mobile apps, considering speed, scalability, and the benefit of one codebase serving multiple platforms.
Other technology stacks can be discussed and arranged upon request when you contact our team, ensuring they align with your internal preferences, compliance needs, and infrastructure choices.
Essential Features to Include
- Multi-payment gateway integration (cards, UPI, wallets)
- Real-time analytics and settlements
- RazorpayX-style smart banking
- Subscription billing and invoicing
- API integrations and developer tools
- Fraud detection and risk management
- Merchant and admin dashboards
Read More :- Most Profitable Digital Banking & Fintech Apps to Launch in 2025
Conclusion
Razorpay’s journey from a startup in Bengaluru to one of India’s most valuable fintech companies is a story of innovation, trust, and timing. By simplifying digital payments and enabling millions of businesses to go cashless, Razorpay has become the backbone of India’s new digital economy.
In 2025, it stands as a symbol of how technology can empower businesses — from local merchants to global enterprises — with smarter financial tools and seamless payment experiences. Its ecosystem approach, combining payments, banking, and lending, has inspired a new generation of fintech founders across Asia and beyond.
For entrepreneurs, Razorpay is more than a case study — it’s a proven blueprint for success. As digital transactions continue to grow globally, the demand for localized, secure, and easy-to-integrate payment platforms is skyrocketing.
A well-executed idea can become a scalable business with the right support — and Miracuves can help you make it a reality.
FAQs :-
How does Razorpay make money?
Razorpay earns through transaction fees, banking services (RazorpayX), lending via Razorpay Capital, and subscription tools like Payroll and Subscriptions. Each transaction generates a small commission, which scales with its massive user base.
Is Razorpay available outside India?
Yes. While Razorpay’s core market is India, it has expanded to the Middle East and Southeast Asia, with plans to enter more global markets by 2026.
How much does Razorpay charge per transaction?
Razorpay charges:
UPI & Domestic Cards: 1.8%–2%
International Cards: 3%–4%
Wallets & EMI: Around 2.5%
These rates vary based on payment volume and business type.
What’s the commission for merchants and marketplaces?
Razorpay follows a pay-as-you-go model with no setup fees. Merchants pay per transaction, while platforms using Razorpay Route or Payouts pay small commissions for split payments and settlements.
How does Razorpay ensure security?
Razorpay uses end-to-end encryption, tokenization, and AI-driven fraud prevention. It’s PCI DSS Level 1 and RBI-regulated, ensuring maximum security and compliance.
Can I build a Razorpay-like platform?
Yes. With Razorpay Clone Script, you can build your own secure, scalable, and customizable fintech platform with multi-payment support, AI-based fraud detection, and instant settlements .
What makes Razorpay different from Paytm or Stripe?
Unlike Paytm, which focuses on consumer wallets, or Stripe, which targets international markets, Razorpay provides an end-to-end ecosystem for Indian businesses — combining payments, banking, payroll, and lending in one platform.
How many businesses use Razorpay?
Over 10 million Indian businesses, including Swiggy, Meesho, and CRED, use Razorpay to process $150+ billion annually in digital payments.
What technology does Razorpay use?
Razorpay’s platform is built using Java, Node.js, Python, React, PostgreSQL, Redis, and AWS cloud infrastructure, with AI models for fraud detection and smart routing.
How can I create an app like Razorpay?
Partner with Miracuves to launch your own Razorpay-style payment platform. Their ready-made clone solution offers 100% customization, enterprise security, and full fintech functionality — delivered.
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