In a bid to protect businesses from losses incurred amid transaction failures, fintech unicorn Razorpay has launched ‘Optimizer’ — an AI-Powered payments routing system.
According to the fintech giant, businesses incur an annual losses of over 7,000 Cr due to transaction failures, and with this platform it aims to solve that.
The platform is designed to handle over 5,000 online transactions per second (TPS) at any point of time, while India handles 300 online transactions per second on an average, Razorpay said in a statement.
Commenting on the launch, Razorpay’s SVP and Head of Payment, Khilan Haria, said, “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.”
He further added that Optimizer aims to empower businesses of all sizes to achieve unhindered growth.
To initiate quick and seamless transactions, Optimizer will use over 2 Mn 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.
Leveraging real time data, the new solution will reduce the number of failed transactions caused due to server downtime or service degradation amongst any PG and improves the transaction success rate. Razorpay said that this will not only help businesses cut the transaction failure costs but also help businesses increase revenue by up to 10%.
Optimizer has been incorporated 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.
Razorpay claims that this offering is poised to save over 500+ engineering hours per integration, ensuring efficiency and scalability.
Recently, Razorpay has been exploring new solutions to make transactions convenient for both buyers and sellers. In August, it partnered with Truecaller to launch 1-Tap OTP-less verification feature for online buyers. With this, customers will no longer need to enter details manually or wait for the OTP during the checkout process.
Last month, it announced ‘Razorpay UPI Autopay on QR’, in collaboration with the NPCI for subscription-led businesses, to help them simplify and streamline the challenges by making the UPI payment process for subscription quicker.
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