Razorpay, a full-stack fintech platform, has unveiled an AI-powered payment routing system called 'Optimizer.' This innovative platform aims to safeguard businesses from annual losses exceeding INR 7,000 crore caused by transaction failures and is engineered to handle more than 5,000 online transactions per second (TPS) at any given moment.
Khilan Haria, SVP & Head of Payments, Product at Razorpay, stated, "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 TPS to 10,000 TPS daily by 2024."
The 'Optimizer' platform is seamlessly integrated with over 100 payment integrations encompassing Payment Aggregators, Payment Gateways, UPI, Banks, and other payment methods. This integration ensures that businesses have a unified and comprehensive overview of payments, refunds, and settlements.
When businesses accept payments through various payment gateways on their websites or apps, Razorpay Optimizer utilizes more than two million data points across 300 parameters from previous payment transactions to determine the optimal Payment Gateway (PG) for each transaction in real time. This results in a higher success rate for online transactions.
By leveraging real-time data, the 'Optimizer' helps minimize the number of failed transactions attributed to server downtime or service degradation among any Payment Gateway, ultimately improving the overall transaction success rate.
Razorpay highlights that Indian businesses currently lose approximately 30% of their revenue due to failed transactions. When a transaction fails, customers tend to abandon the purchase and the entire website. Shockingly, nearly 33% of failed transactions are never reattempted.
To tackle these issues, Razorpay Optimizer adopts the concept of 'limitless possibilities,' empowering businesses to make informed payment routing decisions and ensuring consistently high transaction success rates.
With its introduction, Optimizer aims to provide a robust solution to one of the significant challenges faced by online businesses, potentially helping them recover a substantial portion of their lost revenue due to failed transactions.
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Inputs from IANS
