Bengaluru: Razorpay has announced its own Unified Payments Interface (UPI) infrastructure with Switch, a next-generation cloud-based innovation, in partnership with Airtel Payments Bank.

According to the announcement on April 23, the Switch can manage up to 10,000 transactions per second and will enhance success rates by 4-5%. "Additionally, UPI Switch will provide businesses with 5 times quicker access to UPI innovations", according to Razorpay.

UPI has slowly but surely emerged as India’s preferred payment method, representing 70% of digital transactions. And the success has a strong dependency on the UPI infrastructure deployed at the banks. 

In January 2024, UPI transactions reached a record Rs 18.41 trillion, showcasing its rapid adoption. With the addition of new payment methods like credit cards, wallets, and credit lines, UPI is projected to reach 2 billion transactions per day by 2030. 

Banks utilize the established UPI infrastructure to ensure smooth communication between their core banking systems and UPI technology during the processing of UPI transactions.

This infrastructure, known as a UPI switch, is facilitated by Technology Service Providers (TSPs) on behalf of banks. It can efficiently process UPI transactions on a large scale and pave the way for countless businesses to tap into new UPI innovations.

Existing infrastructure lacks customization features for businesses with clearly differentiated needs, or the capability to handle scale and enhance performance, the release stated.

Razorpay has claimed that its UPI Switch will prepare India for the future by providing a comprehensive infrastructure that addresses these challenges and improves the business experience through its capabilities.

According to the release, it handles issues 7 times faster within 24 hours compared to the industry average of 7 days. Additionally, it offers instant refunds, contrasting with the industry norm of up to 3 days, ensuring a seamless customer journey. The Razorpay UPI Switch serves as the foundational platform driving all future UPI innovations, including current Razorpay offerings like Turbo UPI and TPAP solutions.

“India has consistently led the way in digital payment innovation, and the potential of UPI has grown exponentially in recent years. Razorpay’s UPI Switch is aligned with this vision, aiming to offer scalability and top-notch performance to businesses", Khilan Haria, head of payments product at Razorpay, said on the development.

Ganesh Ananthanarayanan, chief operating officer of Airtel Payments Bank, said, "Through our integration with Razorpay’s UPI Switch, a cutting-edge cloud-based infrastructure for the most advanced UPI Stack, we ensure 99.99% uptime and support over 10,000 transactions per second."

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