Razorpay Launches AI-Powered 'Optimizer' to Mitigate Transaction Failures

RazorPay the leading full-stack fintech platform has made a significant move with the launch of 'Optimizer'. This advanced AI-powered payments routing system is designed to shield businesses from annual losses of over INR 7000 crores attributed to transaction failures.

As the e-commerce sector developed with time, the complexities associated with online payments have also expanded. Transaction failures often caused by server downtime or service degradation have been a persistent challenge for businesses which resulted in considerable revenue loss.

In response to address this problem, Razorpay has introduced 'OPtimizer' which is a cutting-edge solution to enhance transaction success rates, reduce losses, and provide businesses with a unified view of their payment processes.

One of the key highlights of 'Optimizer' developed by RazorPay is its capability to handle more than 5,000 online transactions per second (TPS) simultaneously. This strong performance of this AI-powered model is a testament to the platform's readiness to meet the demands of high-traffic online businesses.

This system is integrated with over 100 payment integrations, spanning Payment Aggregators, Payment Gateways, UPI, Banks, and other payment methods. This integration will ensure that businesses have a comprehensive and consolidated overview of their payments, refunds, and settlements.

In a recent statement, RazorPay revealed that Indian businesses currently suffer losses of approximately 30% of their revenue due to failed transactions. These transaction failures often result in customer abandoning not just the product but the entire website.

Here, Optimizer came into play, as it utilized a vast dataset of over two million data points across 300 parameters obtained from prior payment transactions. In real time it determines the optimal Payment Gateway (PG) for each transaction ultimately leading to a higher success rate for online transactions.

Hence, RazorPay's 'Optimizer' has been developed with the vision of unlocking limitless possibilities that will empower businesses to make informed and effective payment routing decisions, ensuring consistently high transaction success rates. With the usage of real-time data, this innovative system promises to mitigate transaction failures and safeguard businesses from substantial revenue losses.