India’s digital payments ecosystem is getting an AI-focused upgrade with fintech company Razorpay introducing Razorpay Vulcan, a payments foundation model developed using NVIDIA and AWS technology. The company describes it as India’s first transformer-based AI foundation model built specifically for payments.
The model is designed to address payment failures, fraud, transaction routing and checkout-related issues across India’s diverse digital payments ecosystem.
Razorpay said an internal study involving 1.5 million shoppers and more than 51,000 businesses found that payment-related friction affected consumers across both metropolitan and smaller markets. Early components of Vulcan have also been deployed across around 3 trillion data points on Razorpay’s payments network to test routing, fraud and risk decisions on live transactions.
According to the company, the technology has improved payment success rates by up to 10% and helped detect and prevent 8x more international card fraud. It has also identified 5x more fraudulent or disputed transactions without increasing the number of alerts.
On its Magic Checkout platform, 40% more shoppers were able to see their preferred UPI application, helping enable an additional 1-2 lakh purchases every month.
Razorpay CEO and Co-founder Harshil Mathur said the initiative aims to make digital payments more dependable for consumers who are still deciding whether to trust digital transactions over cash.
Pahal Patangia, Head of Global Industry Business Development and Payments, NVIDIA, said India’s rapidly changing digital economy creates an opportunity to make payments more intelligent, reliable and secure.
“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,” said Kiran Jagannath, Head of FSI and Conglomerates, AWS India and South Asia.
India’s payments ecosystem includes UPI, cards, net banking, wallets and cash on delivery, with transactions routed through hundreds of banks and gateways. Razorpay said Vulcan can assess payment routes in real time and select the most suitable option before a transaction begins.
The company plans to eventually expand the model across authentication, routing, fraud detection and lending as digital commerce grows.
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