- 100+ Payment Integrations across Payment Aggregators, Payment Gateways, UPI, Banks, and other payment methods and Support for over 160 International Currencies
- Built to handle over 5,000 Transactions Per Second (TPS) at any given time. Aims to scale to 10,000 TPS daily by 2024
- The power of AI – For every payment routing decision, Razorpay Optimizer uses 2 Mn data points across 300 parameters from past payment transactions to route online transactions to the best performing payment gateway and help reduce fraud
INDIA, Bengaluru, 10 October 2023: From building India’s leading Payment Gateway (PG) to foraying into offline payments to launching its first PG in Malaysia, Razorpay has stayed true to its long-standing vision of empowering Indian and global businesses through continuous innovation and solving for all things payments. Today, Razorpay launches a payment infrastructure, ‘Optimizer’, an AI-Powered Payments Routing System, that will protect businesses from annual losses of over 7,000 Cr due to transaction failures. Moreover, this platform is designed to handle over 5,000 online Transactions Per Second (TPS) at any point in time. On average, India handles around 300 online transactions per second.
What does Optimizer do?
In simple words, when a business accepts payments on its website or app using multiple payment gateways, Razorpay Optimizer utilizes over 2 million data points across 300 parameters from past payment transactions to determine the optimal Payment Gateway (PG) for each transaction in real-time, ensuring a higher rate of successful online transactions. By using real-time data, Optimizer helps reduce the number of failed transactions caused due to server downtime or service degradation amongst any PG and improves the transaction success rate. All this is done entirely through Artificial Intelligence (AI) and Machine Learning, without any human intervention. Such an infrastructure helps enterprises in not just averting huge transaction failure costs but also help businesses increase revenue by up to 10%.
In India, digital payments grew significantly at 13.24% in FY’23, according to RBI Index and for the number to grow significantly in upcoming years, the need of the hour is for a robust payment infrastructure that will save businesses from failed transactions. Currently, Indian businesses lose around 30% revenue due to failed transactions. Once a transaction fails, the end-customer abandons not just the product but the entire website. Nearly 33% of failed transactions are never re-attempted. Multiple factors can affect a transaction rate, be it network error, incorrect OTP, authorization failure, server downtime or risk assessment, among others. Also, when a business manages multiple payment gateways, it increases integration and maintenance costs, leading to low success rates and customer drop-offs. Compliance and regulatory issues further add to the complexity of the process, as the payment infrastructure is unable to scale in tandem with business needs.
To address these challenges and enable businesses to focus on operational efficiency and sustained growth, ‘Razorpay Optimizer’ has been built on the concept of ‘limitless possibilities’. It empowers businesses to make better payment routing decisions and ensure consistently high transaction success rates. Additionally, it reduces integration efforts, saves time and resources, and extends ‘optimized-for-cost routing’ decisions. The platform is integrated with over 100 payment integrations across Payment Aggregators, Payment Gateways, UPI, Banks, and other payment methods, ensuring that businesses have a unified, comprehensive view of payments, refunds, and settlements.
Commenting on the launch, Khilan Haria, SVP & Head of Payments, Product at Razorpay said “As India’s digital payments ecosystem continues to soar, we’re thrilled for the next chapter in the country’s growth journey. Optimizer is born from our relentless payment innovation, leveraging insights from one billion+ transactions. Powered by AI and advanced Machine Learning, we’re not just meeting today’s needs; we’re creating a future-ready payment infrastructure for India that can handle a scale from 5,000 transactions per second (TPS) to 10,000 TPS daily by 2024. Yet again we redefine industry standards, optimizing success rates, eliminating downtime, and delivering seamless payment experiences. Our solution empowers businesses of all sizes to achieve unhindered growth, and we will continue to stay dedicated to overcoming payment complexities and ensuring India remains at the forefront of digital payment innovation.”
During the beta phase of its launch, Pavan Divakar – Vice President of Engineering, Homelane said, “As a startup, we aimed to enhance our payment gateway options for cost optimization. Optimizer enabled us to work with 4-5 multiple gateways, each configured for various payment modes, improving checkout unification. Dynamic routing allowed us to set, edit and update transaction logic on various payment gateways based on continuous monitoring of gateway performances, and save money where we could.”
With its razor-sharp focus on building the backbone of India’s payments infrastructure, Razorpay aims to facilitate the ease of business. The offering is poised to save 500+ engineering hours per integration, ensuring efficiency and scalability. Looking ahead, the future prospects of Optimizer are even more exciting. We are committed to a future-proof approach, where all innovations will be automatically enabled on Optimizer. This means that as Razorpay launches new products in the market, businesses using Optimizer will seamlessly benefit from these advancements without the need of technical coding, manual updates or modifications.