In a strategic move to safeguard businesses from financial losses arising from transaction failures, Razorpay, a prominent fintech unicorn, has unveiled ‘Optimizer’ – a state-of-the-art AI-powered payment routing system.
Addressing a Multibillion-Dollar Problem
Fintech Giant Responds to Annual Losses Exceeding 7,000 Cr Due to Transaction Failures
The fintech powerhouse has recognized a pressing issue faced by businesses – an annual loss of over 7,000 Crores due to transaction failures. In response, Razorpay is introducing ‘Optimizer’ with the ambitious goal of remedying this financial setback.
AI-Driven Innovation for Scalable Transactions
Capable of Handling 5,000 Transactions per Second, Poised for Future Growth
‘Optimizer’ is engineered to handle an impressive volume of over 5,000 online transactions per second (TPS) at any given moment, a significant leap from the 300 TPS India averages. According to Razorpay, this platform is a product of relentless payment innovation, powered by AI and advanced Machine Learning. Khilan Haria, Razorpay’s Senior Vice President and Head of Payment, emphasizes that Optimizer aims not only to meet current demands but also to create a future-ready payment infrastructure for India, with the capacity to process up to 10,000 TPS daily by 2024.
Empowering Businesses and Enhancing Transaction Success Rates
Razorpay’s Optimizer Leverages AI for Real-Time Payment Gateway Selection
Harboring the vision of enabling businesses of all sizes to achieve uninterrupted growth, Optimizer employs over 2 million data points across 300 parameters derived from past payment transactions. This wealth of data is harnessed in real-time to determine the optimal payment gateway (PG) for each transaction, promising a higher success rate for online transactions.
Efficiency and Scalability Through Comprehensive Integration
Over 100 Payment Integrations to Streamline Transactions and Reduce Engineering Hours
Optimizer is integrated with more than 100 payment solutions encompassing payment aggregators, gateways, UPI, banks, and other payment methods. This integration assures businesses a unified, comprehensive view of payments, refunds, and settlements. Razorpay estimates that this offering will save over 500 engineering hours per integration, resulting in increased efficiency and scalability.
In recent months, Razorpay has also taken strides to enhance the transaction experience for both buyers and sellers. In August, the company partnered with Truecaller to introduce a 1-Tap OTP-less verification feature for online buyers, simplifying the checkout process. Additionally, they announced ‘Razorpay UPI Autopay on QR’ in collaboration with the NPCI, a solution aimed at simplifying the UPI payment process for subscription-based businesses, streamlining their operations.
