Inside the Payment Lifecycle: How to Automate Razorpay, Paytm, and Stripe in Dynamics 365

Imagine your finance team logging into Razorpay for one client, Paytm for another and Stripe for international payments, all while trying to keep invoices in Dynamics 365 updated. That’s hours of manual work, higher chances of mismatched entries, and lost visibility

Payment automation isn’t just a necessity that is convenient as well, but it is the foundation of faster revenue realization and better customer experience. Most organizations still rely on manual reconciliation, delayed invoice updates, and multiple logins across payment gateways like Razorpay, Paytm, or Stripe. These fragmented workflows create revenue leakage, compliance risks, and wasted time.

At Dynamics Monk, we built the Payment Gateway Connector to eliminate this fragmentation integrating gateways like Razorpay, Paytm, and Stripe directly within Microsoft Dynamics 365. Here’s what this automation really means and how it works behind the scenes.

Let’s take a deep dive into account what this automation really means in practice.

Understanding the Payment Lifecycle

• Payment Initiation: A customer pays through a checkout form or invoice link.
• Authorization: The payment gateway (Razorpay, Paytm, Stripe) validates the payment.
• Capture & Settlement: The amount is deducted and transferred to the merchant’s account.
• Reconciliation: Finance teams manually match payments with invoices or ledger entries.
• Reporting & Refunds: Any disputes or refunds are handled separately, often through gateway dashboards.

This cycle works fine when you handle a few transactions a day. But for a growing enterprise managing hundreds or thousands, manual reconciliation becomes tough, introducing delays, errors and mismatched records.

Why Automate Payments in Dynamics 365

Imagine a healthcare platform using Paytm to collect patient fees that can automatically sync each successful transaction to the patient’s billing records in Dynamics 365 Finance, without exporting CSVs or reconciling manually.

When these processes are integrated with Dynamics 365, every transaction becomes traceable and auditable. Automation solves the following key challenges:

• Manual Reconciliation: Transactions automatically map to invoices or customers in Dynamics 365.
• Delayed Updates: Payment confirmations trigger instant updates in the ERP.
• Duplicate Data Entry: A single payment entry automatically flows into sales, accounts, and reports.
• Limited Visibility: Teams get real-time dashboards on payment status, refunds, and settlement cycles.

How the Integration Works

The Dynamics Monk Payment Gateway Connector acts as a bridge between Dynamics 365 and your preferred gateway.

Here’s a simplified flow:

• Payment Trigger: A sales order, invoice, or subscription is generated in Dynamics 365.
• API Call: The connector initiates an API request to the selected gateway (e.g., Razorpay).
• Gateway Response: Once the payment succeeds, the gateway sends a success callback with transaction details.
• Automatic Posting: The connector updates payment status marks the invoice as paid, and posts entries in Dynamics 365.
• Dashboard View: Users can track all transactions including refunds or failed payments in a unified view.

Each gateway (Razorpay, Paytm, Stripe) uses its own REST API structure, but the connector standardizes them, so users interact through one consistent interface inside Dynamics 365. s

• Before: Finance teams download daily Razorpay statements and manually reconcile with D365 invoices.
• After: The connector automatically matches Razorpay transactions to invoices and updates the payment ledger. Refunds initiated in Dynamics 365 sync back to Razorpay in real time.

• Before: Recurring payments required separate Stripe portal management.
• After: The connector automates subscription renewals, updates payment records in D365, and sends alerts for failed transactions.

• Before: Payments received via UPI or wallets were tracked in spreadsheets.
• After: Every UPI transaction auto-log in Dynamics 365, linked with customer ID, invoice, and service line item.

Key Features of the Payment Gateway Connector

• Multi-Gateway Support: Seamless connection with Razorpay, Paytm, and Stripe.
• Two-Way Sync: Supports both incoming and outgoing payments.
• Automated Refund Handling: Process refunds without leaving Dynamics 365.
• Reconciliation Engine: Built-in rules to match transactions with invoices automatically.
• Secure API Communication: Encrypted token exchange and authentication aligned with PCI-DSS standards.
• Power BI Integration: Real-time analytics for collections, settlements, and failed transactions.

Benefits for Business and IT Teams

Why It Matters

Payment automation isn’t about saving time; it is about creating a single source of financial truth. By automating the payment lifecycle within Dynamics 365 transforms finance operations from reactive to proactive. Businesses gain instant payment visibility and ensure compliance with minimal manual effort.

Whether it’s a startup scaling online sales or an enterprise managing multi-gateway collections, the Dynamics Monk Payment Gateway Connector enables faster, error-free financial workflows directly where your business runs every day: inside Dynamics 365.