PhonePe Business VS Razorpay

PhonePe Business and Razorpay are two online payment gateways that are currently used by many businesses in India. Both allow easy solutions for receiving digital payments. They provide the merchant and its customers with safe and fluent payment methods. As PhonePe Business has integration with UPI more efficiently, Razorpay provides multiple choices of payments. A payment gateway can be described as an interface that connects a business with a consumer to provide safe and easy transactions. To compare these platforms, it is important to first present the key points of identified strengths and differences.

PhonePe Business vs Razorpay: An Overview

PhonePe Business mostly deals with payment procedures by UPI making transactions easier and faster for business users. This is for its quick clearance duration and easy integration of UPI facilities, which is favorable for merchants. PhonePe Business also integrates different payment methods such as debit cards and wallets. Therefore, the main competitive advantage is the number of users and effectiveness of UPI payments.

Razorpay is a customizable payment gateway solution that can accept payments via UPI, cards, net banking, wallets. It has features such as subscription billing, invoicing, and payment link. Razorpay is one of the most favorable payment gateways among businesses due to its hassle-free installation and various integration options. It is an end-to-end financial operating platform that helps with payments.

PhonePe Business vs Razorpay: Key Differences

• PhonePe Business is majorly into the UPI payments and the QR codes for offline and online sellers. On the other hand, Razorpay is equipped with more extensive options where one finds UPI, cards, wallets, net banking, and international payments.
• PhonePe Business is notably used by small businesses and traditional enterprises for straightforward payment processing.On the contrary, Razorpay offers products and services to all kinds of businesses, from startups to large enterprises, which include payment gateways.
• PhonePe Business and some of the PhonePe Business alternatives offer merchant essentials that are related to payment processing for businesses.However, Razorpay offers services such as banking and payments, collections, invoicing, and subscription.
• PhonePe Business is generally free for UPI transactions where they are likely to charge some fees only in some cases. On the other hand, there are UPI fees for all cases except for cards, where Razorpay has different prices depending on the type of payment method used.

Tabular Comparison Between PhonePe Business vs Razorpay

PhonePe Business vs Razorpay: In Terms of Features

• Merchant Onboarding: PhonePe Business has an easy sign-up, and it takes a little bit of time for small merchants to start integrating UPI payments.On the other hand, Razorpay needs the business to go through an identification process known as KYC and business verification, and mainly for those with larger payment requirements.
• Dashboard & Analytics: PhonePe Business has a simple interface of tabs for monitoring the transactions, and the sales & settlement report. On the contrary, Razorpay offers dashboard features such as payment reporting and analytics, payment summary, add-ons and payment methods.
• Recurring Payments: The PhonePe Business does not have a subscription feature or recurring payments, as it mainly targets one-time transactions.In contrast, Razorpay and some of the Razorpay alternatives allows for recurring payments and subscription services. Thus, it is useful if you are offering subscription services or EMI.
• International Transactions: PhonePe Business is restricted to its operation in India and only accepts payments through the UPI system.On the other hand, Razorpay can fetch international payments through cards and all the other payment modes. It is ideal for international businesses only.
• Payment Links & Invoicing: PhonePe Business does not come with a payment link generator or invoicing functionalities as a built-in feature.On the contrary, Razorpay provides payment links, invoicing, and multiple billing options where users can send requests to their clients for payments through email or SMS.
• Settlement Time: PhonePe Business usually settles UPI payments by the same day, enabling small merchants to access their money more quickly.In contrast, Razorpay provides funds collection within T+2 days (transaction day+2 working days. However, it takes less time as per certain business terms.
• Integration & APIs: For PhonePe Business, there is very limited integration capabilities which are almost restricted to the acceptance of UPI through QR codes only. On the other hand, Razorpay provides comprehensive APIs for websites & apps and customized integration to let businesses integrate payment methods seamlessly.
• Security Features: To ensure the security of the transactions, PhonePe Business keeps the security elements of UPI intact which involves 2FA in every transaction.On the contrary, Razorpay also provides enhanced security functions such as PCI-DSS Compliance, Fraud Net, and Encryption for the security of payments across all forms of payments.

PhonePe Business vs Razorpay: Customer Support

PhonePe Business customer service only avails itself of online help and the use of email, with no live chat. On the other hand, Razorpay has more comprehensive support available such as chat, email, and phone support which assists businesses with quick solving of queries as well as technical problems.

PhonePe Business vs Razorpay: Pricing

PhonePe Business provides SmartSpeaker service which requires an installation cost of ₹318 one time and ₹125 monthly charges. It also offers payment gateway interfaces for websites and applications and no transaction costs associated with UPI payment solutions which benefit small businesses. However, Razorpay has a more complex pricing model. It is categorized into three parts, MDR fees are charged at 1.10% to 1.85%, with business type determining the specific amount while international payment fees cost 3-3.5%. It also levies EMI processing charges, POS machines, and an annual maintenance charge of up to INR 1499. It has domestic and enhanced payment solutions, which have higher charges compared to the ones with additional options.

Verdict: PhonePe Business vs Razorpay

Both PhonePe Business and Razorpay are strong options, but they serve different needs. Ideally for those seeking for a quick and easy UPI payment option without any charges, PhonePe Business is suitable for small merchants. But then again, Razorpay has extra capabilities that do not come with PhonePe Business such as Multipayment, Subscriptions, and International Payments which are proven most appropriate for growing businesses. Select the one that is most suitable for your business.