New Delhi, Jan 22 (IANS): Full-stack fintech platform Razorpay on Monday launched an industry-first 'instant refunds' feature on failed unified payments interface i(UPI) transactions in the country.

The solution by Razorpay POS will provide instant refunds for failed UPI transactions within two minutes, as against the industry benchmark of 5-6 business days, said the company.

“According to our data, 5-15 per cent of UPI transactions see friction due to pending status and our merchants lose their business in 30-40 per cent of the cases wherein the customer is not comfortable making a double payment via UPI or paying through any other method,” said Byas Nambisan, CEO, Razorpay POS.

“It was critical for us to nip this in the bud by empowering our merchants to make these instant refunds happen, enhancing customer satisfaction, trust, and faster checkouts,” he added.

In December last year, Razorpay POS announced it achieved a 60 per cent growth in FY23, contributing to nearly 10 per cent of the company's overall revenue.

Investors such as Lone Pine Capital, Alkeon Capital, TCV, GIC, Tiger Global, Sequoia Capital India, Ribbit Capital, Matrix Partners, Salesforce Ventures, Y Combinator and MasterCard have invested $741.5 million in Razorpay to date.

In 2023, UPI platform transactions exceeded the 100 billion mark, reaching around 118 billion, marking a 60 per cent growth from the previous year's 74 billion, as per the National Payments Corporation of India (NPCI).