Razorpay, a prominent fintech unicorn, has unveiled its proprietary Unified Payment Interface (UPI) in collaboration with Airtel Payments Bank. The company announced that its UPI Switch is engineered to manage up to 10,000 transactions per second, emphasizing its robustness.
Illustrating the functionality of Razorpay UPI Switch, the fintech leader explained the pivotal role of UPI infrastructure in ensuring smooth communication between banking systems and UPI technology during transactions. This infrastructure, termed UPI switch and powered by Technology Service Providers (TSPs), is essential for facilitating UPI transactions at scale. However, Razorpay noted that existing infrastructure lacks customization options for businesses, leading to scalability issues, technical glitches, and downtimes, ultimately affecting customer satisfaction. Legacy TSPs struggle to maintain compliance, hindering innovation and meeting the evolving needs of businesses, the company observed.
Addressing these challenges, Razorpay’s UPI Switch aims to revolutionize India’s payment landscape by offering a comprehensive infrastructure that resolves existing issues and enhances business experiences with its array of features. It boasts faster dispute resolution, processing issues 7 times quicker than the industry average, and ensures instant refunds compared to the standard three days, thus improving customer satisfaction.
Razorpay asserts that its UPI Switch will serve as the foundation for future UPI innovations while supporting current solutions like Turbo UPI and TPAP. Khilan Haria, head of payments product at Razorpay, highlighted the switch’s scalability and performance enhancements, envisioning it as a strategic solution to elevate the merchant experience and provide industry-leading services.
Against the backdrop of escalating digital payment adoption, India witnessed a significant surge in UPI transactions, reaching 13.44 billion in March, marking a 55% increase from the previous year’s 8.7 billion transactions.
Established in 2014 by Shashank Kumar and Harshil Mathur, Razorpay initiated its UPI journey in 2017, gradually introducing features like payment acceptance and UPI Autopay. Last year, the company introduced ‘Turbo UPI,’ streamlining UPI payments into a single-step process.
Furthermore, as part of its expansion strategy, Razorpay launched RAY, an AI chatbot for payments and payroll management, and ventured into the marketing and growth solutions domain with Engage, a comprehensive marketing growth suite. In FY23, Razorpay reported a consolidated operating revenue of INR 2,279.3 crores, marking a 54% year-on-year increase, while its net profit marginally declined from INR 7.4 crores to INR 7.3 crores.
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