New Delhi, 18 August (APAC Media): Razorpay has launched an AI-powered payments foundation model named ‘Razorpay Vulcan.’
As India’s digital economy continues to expand, the AI model aims to make digital transactions more reliable, secure, and predictable. The company has described the model as India’s first transformer-based AI foundation model built specifically for payments.
The model is built with NVIDIA and AWS technology.
Addressing Multiple Challenges across the Payment Ecosystem
The model is designed to address payment failures, fraud, transaction routing, and checkout-related friction across India’s diverse digital payments ecosystem.
The company informed that the model was developed after an internal study involving 1.5 million shoppers and more than 51,000 businesses, which found that payment-related friction affected consumers across both metropolitan and smaller markets. Early components of the model have already been deployed across around 3 trillion data points on its payments network to test routing, fraud, and risk decisions on live transactions.
Early Results
According to Razorpay, the technology has helped improve payment success rates by up to 10 percent and detect and prevent eight times more international card fraud. It has also identified five times more fraudulent or disputed transactions without increasing the number of alerts.
Leadership Perspective
Speaking on the launch, Harshil Mathur, CEO & Founder of Razorpay, said, “India’s appetite for digital payments is real, but it isn’t universal yet – for a large part of the country, going digital still comes down to one thing: does it work, every single time? That’s the customer we built this for: the one still deciding whether to trust a screen over cash in hand. An AI-led payments foundation model doesn’t just solve today’s problem and stop there. Every payment teaches the system something that makes the next payment better. That’s what makes this feel less like a product launch, and more like the starting point for how payments in India keep getting better on their own, for years to come.”
Pahal Patangia, Head of Global Industry Business Development and Payments, NVIDIA said, “India’s rapidly evolving digital economy is creating an opportunity to make payments more intelligent, reliable, and secure. NVIDIA’s work with Razorpay in partnership with AWS on AI payments foundation models has opened up a new frontier, turning complex payments data into real-time contextual intelligence. This has a proprietary and purpose-built semantic AI layer that can help advance the next generation of digital financial services.”
Kiran Jagannath, Head of FSI and Conglomerates, AWS India and South Asia, said, “Razorpay is reimagining payments intelligence at India scale with an AI Foundation Model – built on Amazon SageMaker – that consolidates billions of transaction insights into a single, continuously learning intelligence layer, replacing fragmented ML models with unified AI that delivers higher payment success rates, rapid iteration, and enterprise-grade security for mission-critical payment flows. As India’s digital economy grows, we are excited to power the AI infrastructure behind payments that simply work for every Indian.”
Way Forward
India’s digital payments ecosystem spans multiple payment modes, including UPI, cards, net banking, wallets, and cash on delivery, with transactions routed through hundreds of banks and payment gateways. Razorpay’s AI-powered model is designed to analyse these payment routes in real time and identify the most suitable option even before a transaction is initiated.
As India’s digital commerce market continues to expand, the company plans to gradually extend the model’s capabilities beyond payment routing to support critical decisions across authentication, fraud detection, and lending.
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