Razorpay & Visa to facilitate mutual fund investments via Debit Cards

By Gloria Mathias

Visa has introduced a pioneering initiative that enables consumers to invest in mutual funds using their Visa debit cards.

Launched in partnership with Razorpay, the service is available to customers of Federal Bank and ICICI Bank. With the use of Visa debit cards for investing in mutual funds, consumers can set and modify their own transaction limits.

Customers can see all their SIPs linked to their debit card alongside other recurring payments, by logging into their bank’s subscription management portals. In addition to an evolved dispute resolution mechanism offered by banks on Visa cards, the benefits program offered by banks for their card consumers makes it a rewarding alternative to current payment methods.

“We are most excited to announce that Visa cardholders can now use their debit cards to invest in mutual funds. Starting with Federal Bank and ICICI Bank debit cards, this service will soon be available to more Visa cardholders in India. In a country with over 69 million mutual funds SIP accounts1, we believe debit card payments with its inherent benefits offer a strong alternative to current payment methods, helping build investor trust and ensuring they can invest with ease and confidence,” said Ramakrishnan Gopalan, Head of Products and Solutions, India and South Asia, Visa.

Arif Khan, Chief Innovation Office, Razorpay said, “We are thrilled to announce our partnership with Visa, introducing Debit Cards as an innovative payment method for Investments. This collaboration exemplifies our commitment to leveraging technology for seamless solutions. We’re proud to launch this innovation with Federal Bank and ICICI Bank, democratizing investment accessibility and setting new benchmarks, aligning with Visa’s trusted industry leadership.”

On the website or app of the fund house, the customer can select a mutual fund and then choose debit cards as the payment option and proceed to checkout along the customer journey. The process of mutual fund payments with a debit card remains the same but with additional checks and balances.