Razorpay, a full-stack fintech platform, has launched an AI-powered payment routing system called ‘Optimizer’ to protect businesses from annual losses caused by transaction failures. With an aim to tackle the staggering losses of over 7,000 crore rupees faced by Indian businesses, Optimizer utilizes advanced Machine Learning and AI to create a future-ready payment infrastructure for India.
By analyzing more than two million data points across 300 parameters from previous payment transactions, Razorpay Optimizer determines the optimal Payment Gateway (PG) for each transaction in real-time. This ensures a higher rate of successful online transactions and reduces the number of failed transactions resulting from server downtime or service degradation. Currently, Indian businesses lose around 30 percent of their revenue due to transaction failures, leading to customers abandoning both the product and the entire website.
The integration of over 100 payment integrations across various platforms, including payment aggregators, payment gateways, UPI, banks, and other payment methods, provides businesses with a comprehensive view of payments, refunds, and settlements. This unified perspective streamlines the payment process and creates a seamless experience for both the business and the customers.
Our goal is to provide businesses with a payment infrastructure that can handle a scale of up to 10,000 online transactions per second daily by 2024. By incorporating AI and Machine Learning, we are not only meeting the current needs but also preparing for the future, said Khilan Haria, SVP & Head of Payments, Product at Razorpay.
The significance of Razorpay Optimizer lies in its ability to significantly reduce losses caused by transaction failures. When a transaction fails, not only does the business lose potential revenue, but customers also lose trust in the website. Approximately 33 percent of failed transactions are never re-attempted. By ensuring a higher success rate of transactions, Optimizer helps businesses retain customers and maximize their revenue potential.
With its advanced payment routing system, Razorpay is revolutionizing the payment landscape in India. By leveraging AI technology, businesses can protect themselves from annual losses caused by transaction failures and create a seamless payment experience for their customers.
As the payment industry continues to evolve, Razorpay Optimizer sets a benchmark for future-ready payment infrastructures. With its ability to handle over 5,000 online transactions per second, this AI-powered system is poised to shape the future of payments in India.
