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Razorpay Launches ‘Optimizer’, India's First AI-Powered Payments Routing Solution

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

Razorpay Launches ‘Optimizer’, India's First AI-Powered Payments Routing Solution
Khilan Haria, SVP and Head of Payments, Product at Razorpay
POSTED ON October 10, 2023 5:45 PM

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.

Commenting on the launch, Khilan Haria, SVP and head of payments and 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, optimising 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 start-up, 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.” 

What does Optimizer do?  

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.   

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