Glossary
What is Razorpay Route?
Razorpay Route is a Razorpay product that splits a customer’s payment among several third parties, such as the sellers on a marketplace. It is for businesses that collect money for others. A creator selling their own product to buyers usually does not need it.
Updated 6 October 2026
A Razorpay product for splitting incoming payments among several linked accounts, such as sellers on a marketplace, and managing their transfers and settlements.
What Razorpay says it does
Razorpay’s documentation says Route enables you to “split incoming funds among multiple third-parties, sellers or bank accounts”. It describes the product as suited to marketplaces and platforms with a one-to-many disbursement model: one customer payment, several people owed a share.
- Add and manage Linked Accounts, the people or businesses who receive a share.
- Split a payment and transfer funds to several Linked Accounts.
- Reverse transfers and handle customer refunds with automated reversals.
- Manage Linked Account settlements and use reports and webhooks, all through the API.
How the money moves
The documentation describes the flow in three steps. A customer buys on your site. You then choose whether to start the transfer to Linked Accounts, defer the settlement, or set a custom delay. Razorpay then settles the funds to the Linked Account and sends you a webhook notification.
Before you can use it, Razorpay says you must add Linked Accounts, either in the Dashboard or through the API. Route is listed as supported on Standard Checkout and Custom Checkout, on web, Android, iOS and webview.
Eligibility, as written at the time of reading
Razorpay’s page says that, under RBI Payment Aggregator guidelines issued in September 2025, a business must meet at least one turnover threshold to access or keep using Route: domestic turnover above ₹40 lakh, or export turnover above ₹5 lakh, in the current or preceding financial year (FY26 or FY25), backed by listed documents such as GST-3B returns or a bank-issued FIRC.
It also requires payer-payee transparency: the third party listed as a Linked Account must deal directly with your customers to provide goods or services, confirmed in writing. The page says the deadline to submit compliance information was 31 December 2025 and that Route access was disabled for those who missed it. These rules may have changed, so confirm them with Razorpay before relying on them.
Tip: Ask first whether you really need to split payments. If you sell your own product and keep the whole payment, a normal checkout is enough and Route adds paperwork for nothing.
An example
A platform lists workshops run by independent teachers. A student pays ₹2,000 once, and Route sends each teacher their share, with the platform’s commission held back, to each teacher’s Linked Account.
Questions people ask
What is Razorpay Route?
It is a Razorpay product that lets a business split one customer payment among several linked accounts, such as marketplace sellers, and manage transfers, reversals and settlements through the Dashboard or API.
What is a Linked Account in Razorpay Route?
A Linked Account is a third party, such as a seller or service provider, that receives a share of a payment you collect. Razorpay’s documentation says you must add them in the Dashboard or through APIs before using Route.
Do I need Route to sell my own digital product?
Usually not. Razorpay describes Route as made for one-to-many payouts, such as marketplaces. If you collect payments for your own product and keep them, a standard checkout is enough.
Can I get a refund through Route?
Razorpay’s documentation lists reversing transferred funds and managing customer refunds with automated reversals among Route’s features. Read its refund pages for the exact steps and timings.
Does Route work outside India?
The page we read marks Route as available in India and Malaysia. Razorpay’s availability changes, so check its documentation and sales team for your own business.
Sources
Related terms
- Payment gatewayA payment gateway is the service that securely passes a customer’s payment details from your checkout to their bank and returns the result, so you know it was paid.
- RefundA refund returns some or all of a customer’s payment to the method they paid with. Online it can take days, can be partial, and once issued usually can’t be cancelled.
- CheckoutThe final step of a purchase, where the buyer reviews the order, enters payment details and confirms. It can sit on your site or in a payment provider’s window.
- UPIUPI (Unified Payments Interface) is India’s instant bank-to-bank payment system: you pay from a phone app using a UPI ID or QR code and confirm with your UPI PIN.
- Digital productA product delivered online as a file, a link or access to content, so nothing is shipped. Guides, templates, presets, courses and audio are common examples.
- SubscriptionA recurring payment set up once: the customer is charged automatically every week, month or year for a plan until they cancel or the payments fail for good.
More terms
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