Fintech unicorn Razorpay said today that it is launching its own UPI infrastructure. Named UPI Switch, this product, which is developed in association with Airtel Payments Bank, will be cloud-based and is designed to enhance success rates by 4-5% and can manage up to 10,000 transactions per second (TPS).

As per the company, the UPI Switch aims to provide businesses with 5X faster access to UPI innovations.

UPI has gained significant traction as the preferred payment method in India, representing 70% of digital transactions. In January 2024 alone, UPI transactions amounted to Rs 18.41 trillion, showcasing rapid adoption. With the integration of additional payment methods like credit cards and wallets, UPI is projected to handle 2 billion transactions per day by 2030.

The success of UPI transactions relies heavily on the UPI infrastructure deployed by banks. This infrastructure, known as the UPI switch, facilitates seamless communication between core banking systems and UPI technology during transaction processing. However, existing infrastructure often lacks customization features tailored to businesses' unique needs and struggles to handle scale and enhance performance. Legacy Technology Service Providers (TSPs) face challenges in remaining compliant and meeting the demands of modern businesses.

Razorpay said that its product addresses these challenges by providing a holistic infrastructure solution.

"Offering features such as accelerated dispute resolution and instant refunds, it aims to enhance the transaction experience for businesses and consumers. Additionally, the UPI Switch will serve as the foundational platform for future UPI innovations and integrate seamlessly with existing Razorpay solutions," the company said in a release.

Commenting on the launch, Khilan Haria, Head of Payments Product at Razorpay said, “Razorpay’s UPI Switch is designed to provide scalability and the best performance to businesses. This venture into UPI Infrastructure marks a strategic move to manage the end-to-end merchant experience and provide the industry's leading stack. With latency below 100 milliseconds, a 4-5% increase in success rates, and features customized to suit business needs, our switch is crafted to enrich the payment experience and ensure that businesses can now manage the surge in UPI transactions on any sale or non-sale day.”

Ganesh Ananthanarayanan, Chief Operating Officer of Airtel Payments Bank pointed out that Airtel's partnership with Razorpay will provide customers a “seamless, secure, and scalable payment experience." 

"Our integration with Razorpay's UPI Switch, a cloud-based infrastructure for the most advanced UPI Stack, ensures 99.99% uptime and enables up to 10,000+ transactions per second. As UPI transactions continue to surge, our collaboration sets a new standard for business payments, aligning perfectly with the vision of a digital India," he added.