What is Razorpay Payment Method and How Does It Work?

The rise of digital payments has changed the way businesses and customers interact. Today, seamless transactions aren’t just a convenience; they’re an expectation. This is where the Razorpay Payment Method comes into play.

Trusted by startups, e-commerce sellers, OTT platforms, and global businesses, Razorpay simplifies payment collection while ensuring security and flexibility.

In this guide, we’ll cover:

• What Razorpay Payment Method is
  
• How it works step-by-step
  
• Key features and benefits
  
• How to integrate it with platforms like Flicknexs OTT
  
• Razorpay vs PayPal vs Razorpay (comparison)
  

Let’s dive in.

What is Razorpay Payment Method?

In simple terms, Razorpay is a payment gateway that allows businesses to accept, process, and disburse payments online. It acts as a bridge connecting customers, merchants, and banks, making digital transactions smooth and secure.

• Customers can pay via cards, UPI, wallets, or net banking.
  
• Razorpay processes the payment in real-time.
  
• Funds are transferred safely to the merchant’s account.
  
  

Originally focused on India, Razorpay has expanded globally, offering multi-currency support and easy integration with platforms across industries.

Think of it as the backbone of online paymentsworking silently to ensure your transactions happen securely and instantly.

How Does Razorpay Work?

When you think about online payments, the process might look instant on the surface, but behind the scenes, several steps happen within seconds to make sure the transaction is smooth and secure. The Razorpay Payment Method simplifies this process by acting as the middle layer between customers, merchants, and banks.

Here’s a step-by-step breakdown of the Razorpay payment flow:

1. Customer Initiates Payment
   The process begins when a customer chooses to pay on a website or mobile app. With Razorpay, they can select from a wide variety of options, including UPI, debit/credit cards, net banking, wallets, or BNPL (Buy Now, Pay Later).
   
   
   
2. Merchant’s Website or App Sends the Request
   Once the customer enters their details and clicks pay, the merchant’s platform immediately sends this request to the Razorpay payment gateway.
   
   
   
3. Razorpay Gateway Processes the Request
   Razorpay now takes over. It securely routes the payment request to the customer’s issuing bank or card network. This ensures the transaction is directed to the right financial institution for approval.
   
   
   
4. Authorization & Verification
   At this stage, the bank verifies whether the customer has sufficient funds or a credit limit. Razorpay ensures that the data is encrypted using PCI DSS compliance, SSL protocols, and tokenization. This prevents fraud, phishing, or unauthorized access.
   
   • If approved, the transaction goes through successfully.
     
   • If declined, Razorpay notifies both the customer and the merchant instantly.
     
     
     
5. Funds Settlement
   After successful authorization, Razorpay collects the payment and transfers it to the merchant’s account. Settlement usually happens within T+2 days (2 business days after the transaction), though merchants can also opt for instant settlements at an additional fee.
   
   

Why Razorpay Is Better Than Traditional Banking Workflows

Let’s compare a typical traditional banking workflow vs Razorpay’s payment flow:

• Traditional Banking
  
  • Manual steps often require the customer to input bank details repeatedly.
    
  • Limited payment options (mostly net banking or card).
    
  • Delayed settlements and manual reconciliation.
    
    
    
• Razorpay Workflow
  
  • Fully automated, digital-first process.
    
  • Supports multiple payment methods on one platform.
    
  • Provides real-time tracking and reconciliation through its dashboard.
    
  • Settlements are faster and more transparent.
    

The Razorpay Advantage

Unlike traditional systems, Razorpay isn’t just a “middleman.” It actively enhances the customer experience and merchant convenience by:

• Reducing checkout time with smart, one-click payments.
  
• Preventing fraud with advanced encryption and AI-driven monitoring.
  
• Providing merchants with detailed analytics and insights for every transaction.
  
• Supporting recurring billing, which is critical for OTT, SaaS, and e-learning businesses.

How to Register in Razorpay (Step-by-Step Guide)

Step 1: Visit the Razorpay Website
Go to Razorpay’s official website. Click on the “Sign Up” button at the top-right corner.

Step 2: Sign Up with Your Details
You can sign up using your Email ID or Phone Number. Create a strong password for your account. Then click “Sign Up”.

Step 3: Verify Your Email and Phone
Razorpay will send a verification email to your email ID and an OTP to your phone. Verify both to continue.

Step 4: Complete Your Business Details
Fill in your business type (individual, startup, or company), business name, and business website or app link if available.

Step 5: Enter Bank Account Information
Provide your bank account number, IFSC code, and account holder details to receive payments.

Step 6: Upload KYC Documents
Razorpay requires KYC verification. Upload documents like:

• PAN Card
• Aadhar Card or Passport
• Business registration proof (for companies)
  
  

Step 7: Verify Your Identity
Razorpay may ask for a quick video verification or additional documents to confirm your identity.

Step 8: Set Up Payment Methods
Once your account is verified, you can configure payment methods like UPI, cards, wallets, and net banking.

Step 9: Integrate Razorpay with Your Website or App
Use Razorpay APIs or plugins to integrate payments into your website, app, or platform. You can also use Flicknexs integration if you run an OTT platform.

Step 10: Start Receiving Payments
After completing setup and verification, your Razorpay account is ready to receive online payments securely.

Why recurring billing matters for OTT businesses:

• If you’re running a subscription-based streaming platform (SVOD model), recurring billing automates renewals.
  
• Customers are charged automatically on their renewal date → no manual effort, fewer failed payments, reduced churn.

How Settlement Works with Razorpay

• When a customer makes a payment, Razorpay processes it instantly.
  
• Funds are transferred to your merchant account after a standard settlement cycle (usually T+2 days in India, meaning 2 business days after the transaction).
  
• You can view all settlements in the Razorpay Dashboard, with detailed reports on successful, pending, or failed payments.
  

Example:
If you’re an OTT creator charging ₹299/month for subscriptions:

• Customer pays via UPI/card on Jan 1st.
  
• Razorpay verifies, encrypts, and processes payment instantly.
  
• By Jan 3rd (T+2 days), funds are settled into your business bank account.

How to Use Razorpay Payment Method with Flicknexs

Why Flicknexs Integrates with Razorpay

When running an OTT or VOD platform, one of the biggest challenges is ensuring your customers can pay easily, securely, and in the method they prefer. Flicknexs, a powerful OTT/VOD platform, solves this by integrating the Razorpay Payment Method, a gateway trusted by thousands of businesses worldwide.

With Razorpay inside Flicknexs, businesses can power SVOD (subscription-based models), TVOD (pay-per-view purchases), and hybrid OTT revenue models. This means whether you want your users to pay monthly, purchase a single video, or choose a mix of both, the system is already built in and optimized.

Here’s how it helps different businesses:

• Content Creators → monetize securely with recurring billing or one-time video sales.
  
• E-learning Platforms → accept recurring subscription payments for courses and learning materials.
  
• Media & Streaming Companies → expand globally using Razorpay’s multi-currency support and wide payment method coverage.
  

By bringing together the flexibility of Flicknexs and the security of Razorpay, businesses can focus on creating great content while the platform handles smooth, hassle-free payments.

Steps to Enable Razorpay in Flicknexs

The Payment Settings section allows you to configure and manage how payments are handled on your platform. These settings play a crucial role in enabling smooth transactions for subscriptions, purchases, rentals, and other monetized features.

Payment Gateway Configuration

After navigating to the Payment Settings section in your admin panel, you’ll see various supported payment gateways. To configure Razorpay, locate the “Razorpay” option and click on the Configure button next to it. This will take you to the dedicated Razorpay Configuration Page, where you can fine-tune all the necessary settings to integrate Razorpay with your platform.

Razorpay Configuration Option

Enable Razorpay

• Purpose: This toggle activates or deactivates Razorpay as a payment method on your platform.
• How It Works:
  • If enabled, users can pay via Razorpay during checkout.
  • If disabled, Razorpay will not be available as a payment option to end users.
• Use Case: Keep it disabled if you are using another payment method or not yet ready to launch Razorpay.

Enable Coupon Status

• Purpose: Allows Razorpay to recognize and apply any coupon codes you’ve created directly within your Razorpay dashboard.
• When to Enable:
  • Enable this only if you’ve configured promotional or discount coupons in your Razorpay account for your subscription plans or other payment flows.
  • Disable it if you do not plan to use coupons.

Enable Payment Mode

• Purpose: Sets the operational mode of Razorpay integration – either Live or Test.
• Options:
  • Live: Enables real transactions with actual money.
  • Test: Uses Razorpay’s sandbox environment to simulate transactions without real funds.
• Use Case:
  • Choose Test mode during initial setup and testing.
  • Switch to Live only when you’re ready to go live with actual customers.

Razorpay Label

• Purpose: This is the name or label you want to display for the Razorpay payment method during checkout.
• Example: You can enter something like “Pay with Card (Razorpay)” or “Secure Credit Card Payment”.

Razorpay Key Configuration

To enable communication between your platform and Razorpay, you need to enter your API keys from your Razorpay dashboard.

Razorpay Live Keys

Used when you’re running the site in Live Mode to accept real payments.

• Live Publishable Key
  • Found in your Razorpay Dashboard under Developers > API Keys.
  • Used on the frontend to tokenize and secure payment data.
• Live Secret Key
  • Also found under Developers > API Keys.
  • Used on the backend to authenticate API requests and process payments securely.

Razorpay Test Keys

Used in Test Mode to simulate payments while you’re still setting up or testing the system.

• Test Publishable Key
  • Similar to the live key, but only used for testing purposes.
• Test Secret Key
  • Connects your platform to Razorpay’s sandbox API for testing functionality before launching.

Benefits of Using Razorpay with Flicknexs

The integration of Razorpay and Flicknexs isn’t just about accepting money, it’s about creating a frictionless payment experience that helps increase revenue. Here’s why it matters:

1. Global + Local Support
   Whether your audience is in India or abroad, Razorpay supports multi-currency payments alongside popular local methods like UPI and wallets.
   
   
   
2. Seamless Recurring Billing
   Perfect for subscription-based OTT platforms (SVOD). Users can set up auto-renewals, reducing cancellations and boosting customer retention.
   
   
   
3. One-Click Checkout
   A simplified checkout process leads to lower cart abandonment rates and a higher conversion rate.
   
   
   
4. Bank-Grade Security
   PCI-DSS compliance, tokenization, and two-factor authentication keep every transaction safe.
   
   
   
5. Transparent Settlements
   Razorpay provides clear reports and real-time analytics, so businesses can track payments, refunds, and settlements directly in their dashboard.
   
   
   
6. Easy Scalability
   As your OTT business grows, Razorpay scales with you, handling thousands of payments without compromising speed or security.
   
   

Razorpay vs PayPal vs Stripe (Detailed Comparison)

When choosing a payment gateway, businesses often compare Razorpay, PayPal, and Stripe, three of the most popular solutions in the market. Each has unique strengths, pricing models, and ideal use cases. Let’s break it down:

Feature	Razorpay	PayPal	Stripe
Availability	Primarily India-first, expanding globally	Available in 200+ countries worldwide	Strong global presence in 40+ countries
Transaction Fees	~2% for domestic payments, 3–3.5% for international	4.4% + fixed fee per transaction (higher for cross-border)	2.9% + fixed fee (standard global pricing)
Integration	APIs, plugins (Shopify, WooCommerce, Magento), hosted checkout pages	Very easy setup, widely accepted, simple checkout links	Advanced APIs, SDKs, and highly customizable for developers
Supported Payments	UPI, Cards, Net Banking, Wallets, EMI, BNPL	Cards, Wallets, Bank Transfers, PayPal balance	Cards, Wallets, ACH, Direct Debit, Crypto (limited)
Ease of Use	Beginner-friendly, with strong India-focused support	Extremely beginner-friendly, best for freelancers & individuals	Requires technical setup, but highly scalable
Security	PCI-DSS compliant, fraud detection, 2FA	Strong buyer protection, dispute resolution	PCI compliance, AI-driven fraud detection
Best For	Startups, OTT/VOD platforms, India-first businesses	Freelancers, small businesses, international sellers	SaaS companies, tech startups, global enterprises

Razorpay

Razorpay is ideal for Indian startups, OTT/VOD platforms, and e-learning businesses. It offers multiple payment modes like UPI, BNPL, cards, and wallets, making it highly versatile for both local and global transactions. The recurring billing feature is perfect for subscription-based businesses such as SVOD OTT platforms.

Pros:

• UPI & BNPL support (great for the Indian market)
  
• Easy integration (APIs + plugins)
  
• Strong analytics dashboard
  
• Cost-effective for domestic transactions
  

Cons:

• Global reach is still growing compared to PayPal/Stripe
  
• Limited support in some international regions
  

PayPal

PayPal is one of the most recognized digital wallets worldwide, making it a go-to choice for freelancers, international sellers, and small businesses. Customers trust PayPal for cross-border payments, though its transaction fees are higher.

Pros:

• Widely accepted across the globe
  
• Beginner-friendly with no coding required
  
• Trusted by customers for international purchases
  
• Simple checkout and invoicing options
  

Cons:

• High transaction fees (especially for international payments)
  
• Limited customization options compared to Razorpay
  
• Not as business-focused as Razorpay for subscription models
  

Stripe

Stripe is a developer-friendly solution designed for scalable SaaS businesses and global startups. It offers powerful APIs, subscription management, and advanced customization. Stripe is often preferred by tech companies looking for global reach and flexibility.

Pros:

• Highly customizable with advanced APIs
  
• Supports recurring billing, SaaS models, and even crypto (in limited markets)
  
• Global scalability with support for 135+ currencies
  
• Strong fraud prevention and AI-based risk management
  

Cons:

• Requires technical knowledge to set up
  
• Transaction fees slightly higher than Razorpay (but lower than PayPal for international)
  
• Customer support can be complex for smaller businesses
  
  

Key Takeaway

• Choose Razorpay if your focus is India-first, OTT/VOD platforms, or subscription models (SVOD, TVOD, Hybrid).
  
• Choose PayPal if you’re a freelancer, small business, or international seller looking for a simple, trusted payment solution.
  
• Choose Stripe if you’re a scalable SaaS or tech startup that needs deep customization, developer tools, and global reach.

Conclusion

The Razorpay Payment Method is more than just a payment gateway; it’s a complete digital payment solution designed to help businesses grow with speed, flexibility, and trust. Unlike traditional banking systems, Razorpay offers a modern infrastructure that supports multiple payment modes, seamless integration, and advanced security compliance, making it a go-to choice for startups, enterprises, and global creators alike.

For businesses in the digital economy, payment flexibility is critical. Whether you’re an OTT platform powered by Flicknexs, an e-learning site with recurring subscriptions, or an e-commerce brand handling one-time purchases, Razorpay ensures that your customers enjoy a smooth checkout experience while you gain reliable settlements and actionable insights through its powerful dashboard.

Beyond transactions, Razorpay empowers businesses to adopt diverse OTT revenue models like SVOD (subscriptions), TVOD (pay-per-view), and hybrid systems with ease, helping creators monetize their content efficiently. With features like RazorpayX, smart analytics, fraud protection, and multi-currency support, the platform goes far beyond basic payment processing; it becomes a true partner in your growth journey.

Frequently Asked Questions