Bengaluru, May 9: With the objective of providing automated, compliant, and secure money transfer experience on Escrow accounts to businesses, RazorpayX, the business banking platform of Razorpay, today announced the launch of ESCROW+ solution, powered by Axis Trustee Services Ltd., RBL Bank & ICICI Bank.
In certain industries, receiving funds in a current account is not an ideal solution for a business as 100% of the money in the account doesn’t belong to the business. These businesses either receive funds on behalf of others or operate under a partnership model in which funds from another business entity are in their current account to manage operations. This complicated money flow could lead to a foreseen compliance issue causing hefty penalties for businesses.
RazorpayX’s ESCROW+ solution aims to address such pain points, first by providing an Escrow trustee who is vetted and on-boarded by RazorpayX. Second, by providing merchants with an Escrow account to route funds they are receiving on behalf of end beneficiaries, ensuring the right tax treatment and reporting. Moreover, the automated processes facilitated by ESCROW+ assure higher success rates and seamless payouts, enhancing overall payout performance.
Commenting on the solution, Ayush Bansal, Vice President and General Manager, RazorpayX & Razorpay Capital said, “As we move into the next chapter of India’s fintech journey, it is important to bring together businesses from across different sectors into the ambit of the country’s digital growth. With verticals such as Gaming, Co-lending, P2P lending, and Marketplace & eCommerce facing hurdles in terms of compliance and payments, we wanted to extend a solution that will address their pain points while focusing on what we have always done – making money movement simpler, compliant, and worry-free. Our solution is ideal for businesses in certain industries because it provides a secure, automated, and transparent way to manage the flow of funds & streamline compliance. In line with this, we are excited to launch RazorpayX ESCROW+ which is tailored to assist innovative, digital-first businesses in avoiding any last-minute chaos and threat to their business continuity, thereby, empowering their growth.”
Talking about Axis Trustee’s partnership with RazorpayX for the Escrow solution, Deepa Rath, Managing Director & CEO at Axis Trustee Services Ltd. said, “The future of Banking lies in digital-first solutions, and we are thrilled to announce our partnership with RazorpayX. Together, we are not only committed to ensuring compliance for our customers but also offering a seamless end-to-end money transfer automation directly from Escrow accounts. Together with RazorpayX’s cutting-edge technology and Axis Trustee’s domain expertise, customers can now expect a superior experience that sets a new standard in the Banking & Trustee industry.”
The ESCROW+ account is the second type of account that RazorpayX will be offering as part of its Business Banking Suite, in addition to current accounts. While the solution will currently cater to digital-first businesses in Gaming, Marketplace & eCommerce, Co-lending, and P2P-lending industries, the company soon plans on expanding the solution to other industries where Escrow accounts play a crucial role in money transfers.
RazorpayX has served over 45,000 businesses and enabled them to seamlessly supercharge their current accounts, process their payroll in 3-clicks, and experience automated vendor payments. More recently, the platform forayed into Forex Service for Startups, an offering aimed at empowering Indian businesses to transfer the funds they raised globally into India. In the three months since its beta launch, the service enabled 15 firms to bring Rs 350 crore in annualised run rate (ARR) to India. Additionally, it launched RazorpayX Digital Lending 2.0, a digital lending solution for NBFCs and Fintechs to assist them in complying with digital lending guidelines.
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